The biggest local government union has welcomed plans by the Labour Party to reverse the outsourcing of council services.

Shadow chancellor John McDonnell said a future Labour government would legislate to ensure that the default option was for the public sector to deliver its own services.

He said it was time to end the 'scandal' of the taxpayer being 'ripped off' by private companies.

The strategy would mean services including rubbish collection, cleaning and school dinner provision currently worth £80b would be taken back under council control in the biggest shake-up of local government since the 1980s.

Unison general secretary Dave Prentis said the announcement was 'a welcome first step on the road to ending the scourge of public service privatisation.'

He said: 'For the first time in twenty years we’re seeing positive signs that Labour understands the damage that outsourcing has caused – and is developing a plan to reverse it.

'I’m looking forward to working with the shadow chancellor and other members of the shadow cabinet to deliver on Labour’s conference policy – an end to all privatisation in the public sector in the first term of the next Labour government.'