The Northwest Regional Development Agency (NWDA) offered an �800,000 grant to tempt Liberata to Barrow.

The company, which specialises in taking on work normally done by local authorities, has signed a deal with Barrow Borough Council.

Staff will process benefit claims and collect council tax from residents in Barrow and other UK local authorities.

NWDA spokesman Peter Dobson, said: "This move will not only create and safeguard a significant number of jobs, but will also enable the company to develop a national centre of excellence.

'Solid partnership'

"This development is a major step forward for the local economy, and will help to encourage confidence in Barrow as a great place to do business."

Terry Waiting, leader of Barrow Borough Council, said: "The new centre further supports the local community with quality job opportunities.

"It is another boost for the town that has resulted from the solid partnership between the council and Liberata."

Colin Scraggs, Barrow client and operations director for Liberata, added: "We are investing heavily in Barrow and are delighted by the support given to us.