A controversial deal which will see a major overhaul of a Black Country council and a jobs cull will be signed by the end of the year, it has been pledged by bosses.

Wolverhampton council leader Neville Patten said he was still “fully committed” to the deal with private sector management firm Axon, despite the admission it is putting the authority’s finances under pressure.

As the Express & Star reported this week, the council was plunged into crisis on discovering it had to provide Axon £9million this year and another £6million over the next two years to get the deal off the ground.

The shock announcement that 300 jobs will go by March is just part of the overhaul 80 Axon staff are working on at the Civic Centre, with more job cuts on the way in future years.

The opposition Labour group did not comment during this week’s full council meeting, in which Tory finance boss Councillor Wendy Thompson warned the authority was in an “horrific” situation.

Councillor Patten also said the Axon deal, which faced being scrapped due to the immediate financial pressure on taxpayers, was worth it because of the projected £60 million savings it is set to produce between now and 2018.

Officers will now search the budget for the £9 million savings and report to the cabinet by the end of the year.

Councillor Patten said: “The Conservative group is fully committed to the Axon deal because of the benefits it will bring. The deal is extremely important for this council and we intend to see it through.”

The council already intends to save £5 million this year due to inflation, and another £15 million year-on-year by 2011 to balance the books.

Councillor Thompson said: “We face a very grave situation, inherited from the Labour group.”

The deal, which will cost £60 million, aims to improve customer service by shedding jobs and introducing a new computer system.