United close to clinching service deal

UNITED Utilities is set to clinch a contract worth hundreds of millions of pounds to provide customer services at Westminster City Council in London, outmanoeuvring rival outsourcing group Capita.

In a confident trading statement, the group said that Vertex, its outsourcing arm, was in the final stages of negotiations on the deal, which will be the council's biggest service contract.

Vertex will provide a one-stop shop service for residents, visitors and businesses, handling planning advice, parking permits and school admissions. Capita's bid was ruled noncompliant with the tendering process, Westminster said.

An initial 400 council employees are expected to be asked to transfer to Vertex employment. The council has been consulting with staff and unions for some time.

Council spokesman Ivor Jones said the deal would be worth 'hundreds of millions of pounds' over the course of the contract, which will be for up to 10 years.