THE £205 million deal to privatise Blackburn with Darwen Borough Council services over the next 15 years has been concluded.

And Capita, the company that will be delivering the services, has revealed for the first time the additional contracts it will be working on from its new business centre in Blackburn.

Just under 500 council staff will transfer to Capita and the business services group has promised to create an additional 500 jobs over the next five years.

Capita executive chairman Rod Aldridge said the company was now recruiting staff in Blackburn and Darwen to supports its work for the Benefits Agency, the Criminal Records Bureau and the Abbey National.

Said Mr Aldridge: "These initiatives provide an extremely firm foundation for a long-term business to grow in Blackburn with Darwen.

"Over the last few months, our confidence has grown that, together with a very forward-thinking councils, we can build an exceptional example of the public and private sectors working together."

A £5 million new business centre, accommodating up to 1,000 staff, will be built in Blackburn town centre within two years. Former council staff and new recruits to Capita will be housed temporarily in a refurbished Broseley House, the town hall and other council buildings.

Among the services transferred from Blackburn with Darwen Borough Council are personnel, digital technology, architectural, engineering, housing benefit and some financial services.

A Partnership Board, chaired by the council and comprising six representatives from both the authority and Capita, will set overall strategic objectives and monitor performance.

Council leader Bill Taylor described the Capita deal as a very good opportunity to support the council's work of growing the economy of the borough."

Gail Barton, executive member for resources, said: "The partnership is excellent news for the regeneration of the borough."