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Essex CC is under fire from two sides as it grapples with being sued by BT and an onslaught by Unison over its plans to privatise services. BT has confirmed it is seeking ‘substantial damages' from the council after it allegedly terminated a £30m a year IT services contract – more than three years before it was due to end. A BT spokesman said: ‘We are disappointed that Essex CC has unlawfully terminated our contract. ‘Having discussed the position with our lawyers, we can confirm that we will be seeking substantial damages.' The council said the BT contract, which was brought in to save money, was ‘not delivering value for money'. Unison predicted that if BT won, the council might need to pay out as much as £120m. Meanwhile, the council has invited private companies to bid for a multibillion-pound contract to provide ‘any and all council services' as part of its bid to save £200m. The move has attracted stinging criticism from trade union Unison, which anticipates 6,500 jobs cuts as a result. Unison regional officer for Essex, Kumar Sandy, said: ‘Unison has warned from the outset that when councils gamble with the big boys in the private sector, they lose their shirts. ‘The council is ploughing ahead with plans to privatise everything. ‘With 6,500 jobs at risk, this will have a devastating impact on the delivery of frontline services to the people of Essex.' But a council spokesperson said: ‘Unison has been more interested in using scaremongering language and playing petty games than joining with us on delivering great services to our residents.' Protesters gathered outside county hall in Chelmsford last week – the council claimed 25 turned up while Unison said there were 230.

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BUSINESS

Essex embroiled in legal battle with BT

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