Hammersmith and Fulham Council is likely to reduce council tax bills by 3.75 per cent in part as a result of sharing IT services with neighbouring councils Chelsea and Westminster.
The 'tri-borough' arrangement has seen the councils streamline staff by 500 this year, rationalise data centres and applications, as well as share a managed wired and wireless network and a converged social care system.
The councils are also looking into merging their HR and finance systems.
Combining services will reduce management and overhead costs at Hammersmith and Fulham council by 50 per cent a year.
The move will save Hammersmith and Fulham taxpayers £33.4m over four years.
The councils began their shared services arrangement in October 2010.
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