Morrison has settled a dispute with Norwich council over the award of housing repairs and maintenance work to rival Connaught.

The deal allows Connaught to begin work on the £125m contract it won in December to provide services that include waste and recycling, council house repairs, maintenance and M&E servicing.

The award of the contract was delayed as a result of an injunction brought by Morrison, the incumbent provider, over what it claimed was an abnormally low bid by Connaught.

Peter Jones, chief executive of Connaught Partnerships, said he was “delighted” at the news. “This ends many weeks of uncertainty and brings much needed peace of mind both for residents and for the CityCare staff who transferred to us.”

No details of the settlement were released.