An Essex-based Conservative council has paired up with IBM in a deal worth over £5bn in a bid to better manage and provide public services.

The eight year deal marks a new wave of privatization supported by David Cameron, it was reported in The Times.

The partnership will aim to transform the way public services are provided across the county and will attempt to achieve cost savings of around 20 per cent for the council.

The first task for IBM will be to review the £800m of services that have already been contracted out to investigate whether contracts need to be reviewed or if further savings can be made.

Simon Humberstone, of IBM said: “We can set up a hoist and send one worker instead of two. This is both cheaper and allows more one-to-one time between staff and patient.”