Brighton and Hove Council looks certain to empty the city's bins itself after efforts to strike a deal with a new contractor failed.

The waste service will be operated by Brighton and Hove City Council from Monday for 18 months.

Labour cabinet councillors agreed at a closed meeting last night to reject the only remaining bidder, Serviceteam, and return the service to the council's control.

Their recommendation will be put to the policy and resources committee on Friday.

The decision follows months of chaos and industrial disputes while disgraced Sita was in charge of the service.

Council leader Ken Bodfish said the price set by Serviceteam for the refuse collection and street cleaning contract was too high.

He said: "We have been working in good faith to attempt to reach an agreement with Serviceteam on a contract that would provide value for money for our residents, a high quality service and a fair deal for our workforce.

"Our negotiations have failed to reach the point where we believe the offer does indeed represent value for money for the council and its residents and therefore we do not feel able to award the contract.

"By default this means the staff will transfer back to the council and for a period we will be directly managing the service.

"This is not necessarily the position we had anticipated being in. However I am determined to use it as an opportunity to work in partnership with the workforce so that together we can provide a high quality service."

Today Coun Bodfish led a delegation to the Hollingdean refuse depot to meet the workforce.

He was joined by environment cabinet councillor Chris Morley, strategic director of environment and housing Alan McCarthy and another officer.

Together they addressed the workers en masse to tell them Serviceteam's offer had been rejected.

Union officials said the workforce would be happy to work alongside the council.

GMB spokesman Mark Turner said: "We welcome the cabinet's recommendation and will work closely with the council over the coming days to get the service up and running.

"We have already indicated we are willing to help the council with the logistics.

"There is a lot of work to be done in the next few days. There won't be a problem on Monday morning."

If the recommendation is approved, from Monday rounds will operate using vehicles borrowed from previous contractor Sita and other waste organisations for two weeks until trucks are bought.

Sita, sacked by the council after months of service disruptions and staff unrest, will leave the city on Sunday.

The French-owned firm pulled out of its £6.7 million contract after poor relations between workers and managers culminated in a four-day sit-in of the Hollingdean depot in June.

It is understood that the cost of providing a refuse collection and street cleaning service ranges from £10 million to £15 million a year.

During the past weeks, council officers have analysed Sita's books to come up with a contract price while Serviceteam managers worked on their figures.

Factors adding to the cost include the city's year-round tourist and conference trade, the largest number of multiple occupied rented properties in the country outside central London and the long-distance to the tip at Beddingham.

The journey of more than 15 miles, which takes about 50 minutes, is outside recommended waste guidelines, cutting productivity.

Coun Bodfish said: "Sita has effectively been subsidising the service and therefore subsidising local taxpayers."

Binmen supported the move today. One, Frank Henderson, said: "I worked for the council for 25 years and they were better than any of these contractors. It will be better for the public under council control. They shouldn't have privatised it in the first place."

A union representative said: "It is exactly what we all wanted. We wanted it to go back in-house.

"We found out about it 6.30am today when all the councillors came.

"They don't really know what they are doing yet. Serviceteam has backed out and the council has taken over and they have got three days to sort out everything, including trucks, pay, pensions and uniforms."

He said: "As long as I have got my job and they are paying my mortgage it doesn't matter who the bosses are to me."

Another binman, Frank Henderson, said: "I worked for the council for 25 years and they were better than any of these contractors.

"It will be better for the public under the council control. They shouldn't have privatised it in the first place."

Workers leaving the Hollingdean depot said Coun Bodfish had told them council tax would have to increase.