London Borough of Islington is to consult on a policy which would deliver services in-house as the default.
The authority’s executive backed the consultation, which would insource services unless it was demonstrated that outsourcing would provide savings and better quality.
The council claimed that it has saved £14m from bringing services back in house since 2010.
Andy Hull, executive member for finance, performance and community safety, said: “While the private sector – from Carillion to Capita – lurches from disaster to disaster, costing UK taxpayers millions, our strong track record of insourcing means it’s common sense to make it our default option in future.”