AMERICAN computer giant IBM has been revealed as Essex County Council’s choice to run a scheme it hopes will save £200million.

The Tory council is hoping a deal to buy in managerial expertise from the New York-based company will help keep down council tax and provide services to people in the county.

But Tom Smith-Hughes, leader of the Lib Dem opposition at County Hall, is demanding answers about likely job cuts under the scheme.

The computer giant is negotiating a long-term contract, which will then be put to the vote at a council meeting in October.

Before then, Mr Smith-Hughes is urging council staff to be given a suitably large say in deciding IBM’s future role.

He said: “Up to now, this whole procedure has been handled very badly.

“At one point, the council announced every service could be put out to tender, and staff were obviously worried about their jobs.

“We always accept the need to find back-office savings, because of the lack of central Government funding, but we want to work with our staff to find ways to do that.”

The council thinks IBM will save money by negotiating better deals with private contractors and suppliers.

But Mr Smith-Hughes believes it is almost certain to recommend job cuts so the council can save money while also affording the company’s own hefty fees.

Tory council leader Lord Hanningfield said: “The people of Essex expect and deserve the very best quality of service at the very best possible price and I am determined we deliver.

“This is the most ambitious project the council has undertaken and it was important from the start we work with the right company.”