Peterborough City Council is set to prematurely end its 23-year contract with waste provider Amey, in an effort to save £100,000 a year.
Cabinet members will vote on a proposal which would see the waste and recycling contract terminated by mutual consent and offer alternative options to provide waste services in the future.
It has not yet been determined how services will be provided in the future but it is likely to be a joint venture partnership with another contractor.
The council signed the contract with Enterprise Managed Services in March 2011 to deliver household waste and recycling collections, street cleaning, property design and maintenance, grounds maintenance and a range of other services.
This was transferred to Amey in 2013 when it bought Enterprise.
But “in response to unprecedented challenges within local authority markets”, the council has announced the deal’s early termination and predicts that providing waste and recycling services in a different way will save in the region of £100,000 a year.
It said a new arrangement would allow more control over how services are provided and ensure that a percentage of any income generated by services is returned to the council.
Gavin Elsey, cabinet member for waste and street scene, said: “The financial position we find ourselves in is unprecedented and we are therefore constantly looking at how we provide services to ensure we are achieving best value for money and offering the best possible services for our residents.
“I would like to thank Amey for its commitment to providing services for the residents of Peterborough during the past five years. However, it has been clear for some time that our contract is no longer meeting either of our needs and is no longer compatible with the tough financial landscape we are operating in.
“Regardless of the decision, residents should be assured that waste services will continue to run smoothly.
“We are also aware that this will be an uncertain time for Amey’s staff and we are committed to consulting with them on any proposed changes if cabinet and council approves the termination of the existing contract.”
The contract with Amey will continue until a new service provider is in place.
A spokesperson for the company said: “We have delivered a range of environmental services in Peterborough over the last five years and would like to reassure residents that these services, including waste and recycling collections, will continue as normal.
“We are committed to supporting the council and our Peterborough-based teams over the coming months as they make the necessary changes to their delivery model. At this time, no timescales have been agreed for the end of the contract and Amey is focused on delivering the highest quality service in the interim.”
A number of proposals are being considered as part of the council’s budget setting process, which cabinet will be asked to agree to consult on at its meeting on 6 February.
The consultation will close on 6 March and the full council will consider proposals on 8 March.