A NEW computer system to hold Southampton social services records is set to cost up to £1.5m.

Cabinet members gave the go-ahead to the expenditure and said the outlay was necessary if the service was to keep pace with technology.

Social care executive member Councillor Jacqui Rayment said a great deal of records were still stored on paper and a new computer system would mean a more effective and efficient means of data collection.

A report to the Cabinet explained the current computer contract with Hampshire County Council runs out in 2004 and alternatives must now be sought.

Councillor Peter Jenks said: "This is something else that falls into the 'got to do' category. No computer system can now be seen as permanent.

"We used to look at them as capital items but now they are seen as revenue because they do need to be replaced.

"We almost need to plan to replace this new system before we've even purchased it."

The outlay comes as Southampton City Council wrestles with its budget and the need to reduce its spending by £3.5m.