Darlington Borough Council is building a new office for the Department for Education (DfE) following a campaign to keep 400 civil service jobs within the borough.
The DfE had planned to move to new premises outside of Darlington, but will now relocate to the new purpose-built offices – set to be completed by the end of 2014 adjoining the town hall.
The council will lease the building to the DfE and will also develop plans for wider collaboration such as shared ICT facilities management and an apprenticeship programme.
Ada Burns, chief executive at Darlington Council, said: ‘The financial challenges the council faces makes it even more important that we keep and grow jobs in other sectors and with other employers.
‘Keeping a strong and nationally important hub for the civil service in Darlington will, I know, offer opportunities and job prospects into the future.'
Chris Wormald, permanent secretary at the DfE, said they were ‘very grateful' to the council for the work they have done.
‘The Department is very interested in the possibilities for collaboration which will exist through the co-location of our two organisations,' said Mr Wormald.
‘There are opportunities to cut costs through sharing services, and for a really exciting and innovative partnership between central and local government.'