SMALLER businesses such as pest controllers could start to provide council services in the New Forest under a new strategy to make the best use of the £67m spent on goods and services.

It could see the district council look to the private sector if it gives better value for the taxpayer.

Civic chiefs will have to decide whether keeping services in-house is better than handing them to businesses to run, or coming up with "innovative" partnerships with the private sector, trusts, housing associations and charities.

Tory council leader Mel Kendal told a Cabinet meeting it meant welcome opportunities for small and medium-sized businesses.

He said: "New Forest businesses which support the local economy would welcome closer involvement in providing council services and supplies."

Fellow Tory councillor Roger Neath, who helped draw up the procurement strategy 2007-11 with a team of officers, said: "It's good news for the taxpayer and local businesses."

Cabinet member councillor Maureen Holding added: "In the future we are all going to reap great benefits from it."

Unison, the public service union, said it would be opposed to any outsourcing of services to joint venture companies unless it could be shown they were affordable, top performing and there were no jobs cuts.

The procurement strategy sets out a framework that will be fleshed out by detailed action plans in coming months.

The draft document, approved by the Cabinet, follows five months of consultation with organisations such as town councils and chambers of commerce, plus two major reports.