Two councils have agreed to extend cooperation with a new HR deal that will save both hundreds of thousands of pounds annually.

Buckinghamshire CC and Harrow LBC yesterday agreed to a new HR shared service deal that will cover everything from employee relations to payroll.

The councils have been sharing back office functions since last April in a bid to make savings, signing a legal services deal two months ago.

Buckinghamshire's cabinet member for resources, John Chilver, said: ‘We're continuing our approach of working with like-minded councils to realise significant cash savings and explore new opportunities.

‘These include getting the best value from contracts and marketing our expertise to others. 

‘This new service will also increase knowledge-sharing between our organisations and improve staff career opportunities.'

Harrow leader, Cllr Sachin Shah, added: ‘Another great deal for Harrow means less pressure on the frontline services that people really care about. 

‘We're not finished yet – we're driving forward with new commercial ideas all the time.'