Public sector recruiter The Capita Group has agreed an extension to an existing contract with Birmingham City Council.

The existing contract, delivered through Birmingham City Council and Capita’s joint venture partnership, Service Birmingham, which provides ICT and contact centre services, has been extended by five years to March 2021, with the contract extension worth roughly £300m.

Service Birmingham will also deliver the council’s revenues service for 10 years from 1 April, while 152 council revenues staff will transfer to Service Birmingham under TUPE regulations.

Paul Pindar, chief executive, Capita, says: “We understand the challenges that the public sector is facing in delivering efficiency savings and also improving services. Through this long-term partnership between Service Birmingham and Birmingham City Council, continuing service improvements and cost efficiencies have been achieved.”