When Peterborough public services including bin collections and street cleaning will be brought back in-house

Peterborough City Council is moving ahead with its plan to bring a large number of public services in-house and hopes to make the change within a year.

Around 400 workers at Peterborough Ltd, a private company wholly owned by the council, could rejoin the local authority as it looks to reform the way it delivers key public services.

These services, provided under the Aragon Direct Services brand, include household bin collections, street cleaning, parks maintenance, and school transport.

The plan was discussed at a Peterborough City Council cabinet meeting on Tuesday, March 11.

Councillor Angus Ellis, cabinet member for environment and transport, told the meeting: “To be clear, this is not about cutting costs or saving money. It is about recognising and valuing the incredible work that Aragon staff deliver for this council. Without them, we would be stuck.”

The move, which could cost the council between £2.9m and £3.6m, may see staff benefit from better council pay and terms and conditions, potentially ending a current industrial dispute over pay.

GMB Union members at Peterborough Ltd have been involved in a long-running pay dispute with the company. The union and its members have welcomed the council’s recommendation to insource key services.

The council will serve 12 months notice on the contract with Peterborough Ltd, but services could be brought in much sooner.

Speaking about the expected time frame of the move, executive director for place and economy Adrian Chapman told Tuesday’s cabinet meeting: “Peterborough Ltd are required to provide the council with an exit strategy.

“We are, subject to the decision made today, going to serve formal notice and set out in that notice that we require that exit plan within one month.

“That exit plan will be a negotiated plan but will likely include the phasing in of services in different groups so that we are not waiting the full 12 months to receive services back inside the council, but we can instead bring services back in a gradual manner.

“We can start to achieve efficiencies far sooner, drive value from these services, but most importantly settle staff into the council at the earliest opportunity.

“Think of 12 months as the absolute maximum, but we will be working a lot harder to bring services in much faster.”

Cllr Ellis told the meeting that he is “totally confident” residents will not see any reductions in services as a result of the move.

The cabinet agreed to authorise the termination of the council’s operational services agreement with Peterborough Ltd and the in-sourcing (or cessation) of the services on or before March 31, 2026.

Peterborough Ltd also provides leisure and culture services for the council, which include Flag Fen and Peterborough Museum and Art Gallery.

These services will remain unaffected and continue to be sub-contracted by Peterborough Ltd to Peterborough Culture, Heritage, Learning and Leisure Ltd (PCHLL), with 250 staff and a specialist management team.