Glasgow City Council has agreed a £265.5m outsourcing contract with services company Serco.

The 10-year deal is forecast to deliver savings of £70m, as improved IT services increase the council's efficiency by 20 per cent.

New government buildings with reduced carbon footprints will be designed to act as community hubs, offering local residents fast access to council services. Meanwhile a flexible IT system will allow staff to use business practices such as hot-desking and homeworking.

“Glasgow City Council is determined to provide the best services to our citizens while ensuring value for money," said George Black, council chief executive.

"This radical new partnership will ensure that our customers have easier access to the services they rely on, and help our staff to deliver those services.”

The services will be delivered through a limited liability partnership agreement - a joint venture co-owned by the local authority and Serco, with council staff offered the option of transferring employment or seconding to the new organisation.