Torbay’s troubled waste and recycling collections are to be brought back in-house by the council.
Councillors have voted to create a new company to take over the service, when the current contract with Tor2 ends in 2020.
They've also agreed to replace the ageing collection fleet with new vehicles at a cost of 4.5 million pounds.
They will be leased to Tor2 during the remainder of the contract period.
The move follows concern over widespread delays to recycling collections after Christmas.
Residents complained about recycling left out on the street for days.
Tor2 blamed a larger than expected amount of cardboard as a result of online shopping at Christmas.