ALMOST £5½million of taxpayers’ money has been spent settling a dispute between Somerset County Council and an organisation it hired to cut costs.
Southwest One, created by IBM to handle key services and save County Hall millions, had threatened legal action after the local authority withheld payments.
The row centred on a disagreement over savings made by the partnership, but the two organisations have settled their differences after the council agreed to pay £5.461million.
The county will continue working with Southwest One, which has similar deals with Taunton Deane Council and Avon and Somerset Police, but it has resumed control of some key services.
Part of the settlement was the reimbursement of Southwest One by the county of contract savings given in earlier years and elements of some services, along with individuals delivering those services transferring back to County Hall.
Services back in-house are strategic procurement, IT training, some property services and facilities management, while Southwest One continues to deliver elements of finance, facilities management, property services, payroll and technology services.
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