A DEAL that will save millions of pounds but could see council jobs moved away from Petersfield is being driven forward by another authority.

Havant Borough Council (HBC) is leading privatisation negotiations on behalf of itself and East Hampshire District Council (EHDC).

A spokesman said views expressed by EHDC were being taken into account, and so far there was consensus on all key decisions.

The two councils share procurement, human resources, computer and finance services departments, but private companies Capita and Vinci are set to deliver the services in future, say officials from Havant.

It is one of a five strong council group which aims to privatise some of its departments. They are Havant Borough Council (on behalf of EHDC), Mendip District Council, Hart Borough Council, and South Oxfordshire and Vale of White Horse district councils in Oxfordshire.

The value of any savings will depend on how many of them agree to privatise the services they deliver now.

EHDC staff learned last Thursday about the impending changes. One staff member said: “We were told it will save the council millions of pounds and that it was agreed, and all that remained was to sign the paperwork.

“Jobs could be moved to the offices of the private companies, but if people don’t want to commute, they could lose their jobs.”

A spokesman for the union Unison said it was opposed to the outsourcing of jobs, and would be offering EHDC?staff support.

He added that staff would be re-employed by either Capita or Vinci. In a statement, EHDC said there would be more briefings and one-to-one meetings for affected staff as the details of the deal emerged.

The statement continued: “As well as saving millions of pounds, services would also be improved. The details will be confirmed after the councils have made their decision on February 4.”

Capita has offices in Havant and Southampton, and already delivers some services for HBC. Vinci looks set to take over property services and car park management. It is thought they will earn around £31m between them from the deal, which is expected to start in the second half of this year.