East Cambridgeshire District Council is to end its contract with Veolia in favour of a council-owned trading arm, with a senior councillor saying the switch would lead to cheaper services.
The decision to bring the household collections and street cleaning service in-house by using East Cambridgeshire Trading Company (ECTC) was approved on 23 February.
ECTC will take over from April 2018.
Council waste champion Julia Huffer said: “We believe that direct provision of services is definitely the way ahead. It will give us greater control over services and flexibility to make future improvements.
“We will no longer be paying a contractor’s profit margin and will be able to reinvest savings to provide better services for local residents.”
Jo Brooks, director of operations, said: “Transferring the service to ECTC will directly reduce the amount of money the council spends on waste while not reducing the level of service for local people.
“It will also enable the service to be more flexible to future change. ECTC is also committed to achieving the council’s recycling target of 60%.”