Councils have entered a London first joint agreement to share IT services in a move set to save taxpayers millions.

Sutton and Kingston councils have agreed to share their IT services in a bid to save funds while modernising their systems.

The move is the first of its kind in London and Sutton Council estimates it will save people across the two boroughs £4m over the next for years.

Councillor Colin Hall, deputy leader of Sutton Council said: "We are extremely pleased to link up with Kingston for this vital service. In the current financial environment it’s essential for local authorities to think differently on how they adapt to dramatically reduced budgets.

"This is a first-of-its-kind scheme in London and shows that we are committed to become an authority known for leading the way in terms of best practice while meeting our residents’ ever evolving needs."

Councillor Simon James, Kingston Council’s lead member for IT said: "We’re transforming the way we work to get the most out of every penny of public money while delivering what matters most to people. It’s essential that we achieve the very best for our residents, and having the right IT in place to support flexible and efficient ways of working and help make more services available online will benefit the council and residents.

"By working together with our partners in Sutton we have been able to secure the investment needed to make this possible."

The new service, which went live this month, will also create a number of jobs with recruitment for the positions due to begin soon.