A COUNCIL chief has welcomed moves to end the "hiving off" of town hall services.

The new Labour Government has announced that it plans to end compulsory competition.

This is where councils have to bid to run services against competition from private firms.

Labour Cllr Michael Kilcoyne, chairman of Bolton Council's contract services committee, said: "This is certainly good news."

His committee has been responsible for overseeing and running the contracts.

It is estimated that preparing council departments to compete against private firms has cost millions of pounds since the system was introduced in the early 1980s. Local Government Minister Hilary Armstrong is preparing a new 12-point series of guidelines for the future where councils will have to show they are "giving value for money".

Cllr Kilcoyne said: "From what I have seen so far of the proposals, I am very impressed.

"Local authorities will still have to be accountable, but there is the starting assumption that we are doing a good job.

"My main objection has been that it has created an extra level of managers to administer the system and it has created a huge amount of paperwork."

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