A THORNABY-based company has been awarded a £14m contract to design a street lighting project which is set to save Stockton Borough Council £1.8m a year.

The money is being invested despite the council shedding about 150 jobs in the coming year, and more likely after that, in an attempt to save £18m from its annual budget by 2018.

In March, Stockton Council’s cabinet agreed to invest £14m in a three year programme to replace almost 28,000 street lighting lanterns with modern, LED lighting units.

All street lighting columns over 25-years-old, around 8,500 in total, will also be replaced.

Stainton Lighting Design Services Limited, in Thornaby, has now been appointed to plan the lighting replacement.

The council’s cabinet member for regeneration and transport, Councillor Mike Smith, said: “I’m delighted that this project is not only going to deliver year-on-year savings for the council but is also making use of the top-class expertise offered by a local Thornaby-based company.

“We know how important it is to get the design right as better lighting makes people feel safer, so we are looking forward to working with Stainton Lighting Design Services to make sure the lights are positioned where they will most benefit our communities.”

The projected annual savings will come from the lower energy bills and reduced maintenance costs associated with the more efficient and reliable LED lighting.

The replacement programme will be delivered in-house by Stockton Council and is expected to get under way in July.

Cllr Steve Walmsley, Thornaby Independent, has been critical of the authority and voiced his concerns about job cuts. However he still backed this move.

He said: “In the long run, making annual savings will save jobs. I appreciate that people are being laid off but I think they have to look beyond the council to the Government for that.

"The cut backs (in Government grants to some councils) are so severe they’re actually sending some councils to the wall. An ‘invest-to-save’ move like this benefits the tax-payer.”

It is estimated that at present the council spends about £1.5m a year on running streets lights - 65 per cent of the council’s energy bill, excluding schools. The figure has been rising as energy companies’ charges have gone up. The costs were expected to rise by £418,000 by 2021 and the investment could be recouped in eight years.

The new street lights have been piloted in Norton. Some residents complained the LED lights failed to light enough of the street but others argued the new lights are more efficient and don’t shine light into people’s homes as much.

Stockton Council received £120m from central government in 2010/11 but is expected to receive just £53m by April 2018.