Councillors have refused to backtrack on proposals to outsource Lambeth's revenue and call centre contract to a private service provider.

Members of the council's Finance Scrutiny Sub-Committee voted not to delay their decision to award a £60million contract to Capita, which will result in around 100 job losses. The committee said last night they would not refer the proposals back to the Cabinet, despite concerns from unions and other councillors. If the 10-year deal is finalised, the council’s revenue collection and call centre would be moved to Southampton, saving the council around £1million a year.

Union workers rallied outside the town hall last night to voice their opposition to the council's plans.

Following the meeting, Unison branch secretary for Lambeth, Jon Rogers, urged union workers to mobilise further opposition.

He said: "No contract with Capita has yet been signed and we will explore every way to challenge what the council is doing. "Had we had a larger lobby, the increased pressure on the members of the Scrutiny Committee could have led to a different outcome.

"There is still much to be won."