United Utilities wins £442m council contract

United Utilities, the North-west water and electricity company, yesterday landed a £442m contract to handle customer services and council tax bills for Westminster City Council.

The contract, which runs for 10 years with an option to extend for a further five, is one of the biggest to be won by the group's Vertex unit. Vertex will set up a call centre to handle enquiries from Westminster council tax payers covering everything from rubbish collection and parking permits to planning applications. It will also be responsible for parking administration and commercial waste collection in the London borough.

The Westminster City Council contract was won in the face of stiff competition from the support services group Capita. The contract will add about £25m a year to Vertex's turnover, lifting it to £325m a year, said its chief executive, Tom Drury.

About 300 Westminster Council employees will transfer to Vertex when the contract starts in November. Several new jobs will also be created.