As revealed on Newbury.net in April, the council and Amey plc decided to scrap their flagship contract on Monday, after the expected savings failed to materialize for the contractor.

Amey spent £11m on upgrading IT systems and building a new customer reception area at the council’s Market Street offices, and still has to hand over £3m for further improvements.

In a joint statement, the council and Amey made no mention if jobs would go – unions feared 70 jobs were at risk – but said new business practices would continue to benefit taxpayers.

In April, Tory leader Graham Jones reacted angrily when Newbury.net broke the story that the contract had collapsed, accusing the Liberal Democrats then in charge of the council of “not even bothering to read the contract” and of “mismanaging the process.”

Now in charge of the £200m authority, Cllr Jones teamed up with Opposition leader Jeff Brooks to stress that the collapse of the deal wouldn’t cost taxpayers extra.

“This is the best outcome for the people of West Berkshire,” they said. “The investment has improved service delivery and the settlement enables us to continue this progress. We acknowledge that the Amey contribution will be of benefit to the public for several years to come, and wish them well.”