Rushcliffe BC has told Capita it is breaking off a shared services deal.

The council is withdrawing from the competitive dialogue which it had been conducting with Charnwood BC and the firm since November last year, when an agreement with its preferred bidder, Liberata, fell through.

Negotiations ended after Rushcliffe concluded its savings targets could not be met.

The aim had been to create the first centre of excellence in the East Midlands, in partnership with other local authorities.

But the credit crunch added to pressures, and the council is now going back to the drawing board to see how else it can generate the savings,
estimated to be £6m over 10 years, that would have been achieved.

Neil Clarke, leader of Rushcliffe, said: ‘We had been very confident that the private sector could provide savings and improve services. However, the economic downturn has changed the dynamics of the marketplace.

‘We will continue to look for other ways to take forward our vision of working with others so that we maximise our capacity and future resilience.

‘Therefore, the hard work by both members and officers will not be wasted. We have learned a great deal from this experience.'