Cheshire East Council has announced it is closing both its waste and recycling and bereavement companies because it can make savings by delivering the services themselves.
The council's finance sub-committee decided last month the services provided by its wholly-owned companies, Ansa Environmental Services and Orbitas Bereavement Services Ltd, both created in 2014, are to be brought back-in house and delivered directly by Cheshire East Council.
This includes bin collections, street cleansing, maintenance of green spaces, fleet, social transport, bereavement services and the handyperson service.
Councillor Nick Mannion, chair of Cheshire East Council's finance sub-committee, said: "The decision to bring the services delivered by Ansa and Orbitas back in-house following recent reviews is considered the most efficient way to deliver these services to our residents.
"It will deliver a one-off saving of £1m in 2024/25 to support the council's medium-term financial strategy, followed by a permanent minimum reduction in costs each year of £200k from 2025/26 onwards.
"Over the next four-years, the council is forecasting a funding gap of £100m.
"The council's critical financial position means that we urgently need to transform the organisation to help us to move towards financial sustainability, and to be able to continue supporting those residents who need our help the most.
"The decision to bring the services delivered by Ansa and Orbitas back in-house forms part of this whole-organisation transformation programme and will allow us to look at how we can maximise service efficiency and provide the best value for money for council taxpayers."
Subject to a formal consultation with trade unions and engagement with staff affected by the changes, the new working arrangements are expected to be introduced in a phased approach.
This will start this autumn and finish before the end of March 2025, with Ansa and Orbitas staff members transferred to join the council's existing teams.
Cllr Mannion added: "Our key priorities while these services are brought back in-house are to ensure that high-quality frontline services continue to function efficiently and effectively, to support all staff affected by these changes, and to ensure value for money for the council and our residents.
"I would like to reassure residents that services, including bin collections, will continue as normal throughout this process.
"The council also recognises that both Ansa and Orbitas colleagues bring with them a lot of knowledge, commitment and experience, which will be of great value as the authority moves towards delivering exciting transformational change."