Haringey Council is reversing a drive to hire private-sector firms to provide services for residents.

Top decision-makers have agreed to change the council’s policy so that insourcing – providing services using its own resources – is now the default option.

The move is described as a “significant shift away from the council’s previous approach” in a cabinet report.

Like other local authorities, Haringey has contracted out many services over the past few decades – partly in a bid to save money following cuts in funding from central Government.

But a council report says this approach brings “significant risks” – highlighted by the “high-profile failures of providers like Carillion and Interserve”.

The decision to insource services will support the council’s “community wealth-building agenda”, which aims to ensure public-sector spending benefits people in the borough.

Haringey has already taken steps towards insourcing in areas such as children’s services and facilities management.

It says there will now be a review of all commissioned services when contracts come up for renewal.

Council officers will also draw up a detailed plan for bringing services in-house, which is expected to be finished by March next year.

Some services could continue to be delivered by the private sector if this provides more social benefits and better value for money, the council says.

The policy changes were agreed at a cabinet meeting on Tuesday (October 8).

Council leader Cllr Joseph Ejiofor (Labour) said: “Our commitment to insourcing is grounded in the belief that all public spending should first provide a public benefit and should seek to maximise every penny spent on delivery of the service itself.

“This supports our goals to improve local services for local people and maximise the community benefit; increase equality, job opportunities and good working conditions for residents; and ensure greater democratic accountability for public services.”