Liverpool City Council has officially ended its contract with Amey and taken its highways services back in-house.
The council estimates this will save £750,000, which will be reinvested into repairing potholes and new alleygates.
Cllr Ann O’Byrne, deputy mayor of Liverpool, said: 'We have seen with other services such as street cleansing and refuse collections that insourcing can deliver savings which can be reinvested to make our money go even further.
'Anyone who travels by car or bike through Liverpool knows the city has a pothole issue and the council is doing all it can. Unfortunately this issue is a double whammy because while we are investing £93m in repairs the Government are putting in just £18m.'
The council has already brought parks services, street cleansing, bin collections, IT and HR and payroll services all back in house.