Waste services in Islington are set to be taken back under council control in a move which could save up to �3million a year.

The town hall approved proposals to take waste, recycling, street cleaning and grounds maintenance services contracted out to Enterprise back in-house at a meeting last week.

Islington Council claims it would save millions while maintaining a high-quality service and improving terms and conditions for staff, who would earn the London living wage.

Cllr Paul Smith, executive member for environment, said: “Bringing these services in-house will save �3million pounds by 2014, and help us provide the best possible service in a time of huge cuts from central government.

“Our number one priority is making sure services like bin collections continue to be on time, and are efficient.

“We also strongly believe a fair day’s work for a fair day’s pay is the best way to ensure quality services.”

Lib Dem councillors slammed the move as a benefit to unions and raised concerns about the future impact of any local government strikes.

Opposition leader Cllr Terry Stacy said: “All the efficiency savings that have been suggested could have been delivered by an out-sourced contract while giving all employees the London living wage. If there is any local government strike at present, roads are still swept and rubbish is taken away, but when it comes back in-house that will not be the case.”