A COUNCIL is promising to create at least 1,000 new jobs when its leaders sign a strategic partnership today.

Redcar and Cleveland Borough Council is joining forces with UK company Liberata, which provides housing benefit and revenue collection, customer relationship management, finance and accounting and human resource services to councils across the country.

As part of an agreement, which is worth £261m over ten years, 800 council employees will move on to Liberata's payroll.

The chairman of the council's cabinet, Eric Empson said: "The coalition is delighted to be part of this historic document, which we are sure will bring huge benefits to the council and the borough's citizens."

Liberata's Chief Executive officer Glenn Timms said: "We are delighted to have secured this strategic partnership with the council and look forward to realising real benefits for the authority and for the citizens of Redcar and Cleveland."

The contract covers a wide range of support and customer services, including the establishment of one-stop citizen contact, a £23m investment in information and communication technology and improvement in the council's core services.