Up to 50 council jobs are to be axed and £2million a year saved through a cost-cutting programme that could also end a 10-year deal with a consultancy firm.

Project Minerva will, from 2015, affect Harrow Council’s resource directorate, which has 254 posts and includes the finance, human resources, payroll, shared services, health and safety, collections, benefits and information technology departments.

A Harrow Unison spokesman said: “The Minerva programme of cuts and transformation significantly impacts support functions and 254 jobs across the resources directorate as savings are predominately being made on posts which may ultimately impact the efficiency of frontline service provision.”

Harrow Unison also branded alternative options considered as ‘outrageous and unpalatable’.

These included relocating jobs to Wales, northern England and even overseas.

Conservative-run Harrow Council’s cabinet agreed on Wednesday last week to press ahead with Project Minerva as it looks to reduce service costs by 30 per cent over four years from 2015/16, by renegotiating contracts and calling off the ‘business transformation partnership’ with Capita which began in 2005, and seeking an alternative deal elsewhere.

The current contract with Capita, which provides expertise and advice on running services, expires in November 2020 but includes a clause enabling the council to cut ties with the consultancy firm by November 2015.

Tom Whiting, corporate director of resources at Harrow Council, wrote in a report to the committee: “Within the current economic and financial climate, the future service delivery model will need to change if further significant cost reductions are to be achieved.

“There is a potential for approximately 40 to 50 posts to be deleted through the cost reduction programme.”

Opposition cabinet member Councillor Graham Henson (Labour) said: “These jobs loses are due to the Tory government continuing their damaging austerity programme that is unfairly attacking local councils and residents.”

Councillor Paul Osborn (Conservative), the cabinet member for communications, performance and resources, said: “We considered a whole range of options to ensure we get the most value for money for residents and that we can protect frontline service.

“After looking at the potential costs and savings of each option, we decided to continue delivering the services in-house but in a more cost-effective way.”