THE company given the job of running Blackburn with Darwen Council's computer service has been stripped of the contract.

The outsourcing firm Capita runs a number of services for the council, including highways.

But following concerns about the way the £2.4m-a-year ICT contract was being delivered, the service has been taken back in-house.

Under the contract, agreed in 2001, Capita was in charge of the council's computer serv-ers and staff systems, and staff were trans-ferred to the company from the council.

But following a "fundamental review" of the contract, the council has now taken the service back, and the staff will transfer back again.

The move was announced to cheers from opposition coun-cillors, at a full council meeting.

In a joint statement with Capita, council chiefs said that the overall £8.3m-a-year deal with Capita brought savings to the borough.

And they said the decision to take back the IT contract was a "strategic decision, to address new priorities."

Council leader Coun Colin Rigby said: "The council has carried out a planned review of its contract with Capita, and has decided to bring the ICT service back in-house.

"Other elements of the council's contract with Capita were reviewed in 2006 and are not affected by this change.

"Staff will transfer from Capita to the new service within the council and we will be consulting with them."

Unison representative Sue Crompton said she was not concerned about the development from the point of view of the staff.

Labour leader Coun Kate Hollern, who set the review in place 18 months ago as leader of the council, said: "I was unhappy with the service, but under the contract we had to wait about five years before we could do anything.

"We didn't feel we were getting particularly good value for money."

A Capita spokesman said the company had no further comment to make.