A council-owned company to deliver waste collection services is to be set up in Liverpool, after staff voted in favour of the move.

Liverpool City Council will establish a new arms-length company when its current joint venture with Amey ends in November 2015. Liverpool Waste Management and Related Services (LATco) will aim to cut costs and increase recycling rates to 55% by 2020.

Mayor of Liverpool, Joe Anderson, said: ‘I am pleased that the workforce has supported this move, as it gives us the opportunity to introduce a service that the workforce and council believe in and one in which all parties work together.

‘The new proposed service arrangements will support us in reaching our aspirations and our recycling target, which will deliver major savings to tax payers of the city.’

The council is also in discussions to use LATco for street cleansing services ahead of the current contract with Amey ending in March next year.