BT loses case over £160m council contract

The outsourcing deal for Cornwall is operated by Openreach
The outsourcing deal for Cornwall is operated by Openreach
CHRIS RATCLIFFE/GETTY

BT has lost a court case to hold onto a £160 million public sector contract in Cornwall after a judge ruled that the local authority could back out of the deal.

The contract, which involved 300 staff transferring to BT, promised to save nearly £18 million over the course of the deal and create hundreds of new jobs while protecting existing roles in Truro. Under the terms, BT would have taken over back-office roles, such as human resources and IT and separate contracts with NHS authorities.

Opponents of the deal argued that the council had rushed to sign the contract before local elections, and the council has already fined BT £100,000 for failing to deliver on its original promises, particularly on jobs.

The judge ruled