The majority of the council's privatisation proposals have been axed.

Reading Borough Council (RBC) launched a consultation, from August 6 - September 14, to ask for residents' views on outsourcing six service areas.

The council is operating under reduced government funding and needs to deliver a balanced budget.

Only one area is now being considered, which includes: council tax and business rates collection, management of the council tax reduction scheme and payment of housing benefit.

Councillor Lovelock, leader of the council, said: “There are some services where it is difficult to keep them in house.

“The one that is being looked at is housing benefit and the revenue service because we are in that transition period.

“The government has been very slowly grinding out the implementation of Universal Credit.

“We already have a contract with the private sector to help with benefits. We are in a sort of hybrid situation. We need to sort that out so we are clear about staffing levels.

“It is difficult to say what staffing levels would be needed. That is the only service, at the moment, that would be looked at for the involvement of the private sector.

“It is just market testing at the moment. We will have a decision to make to see if it is needed.”

Five services that were previously under consideration and part of the consultation process are no longer being considered: waste collection and streetcare, facilities management and building cleaning, parks and grounds maintenance, fleet management and highways, and civil engineering.

Cllr Lovelock said: “We considered further information about all those services and concluded that we wanted to work internally to see if we can get better efficiency.”

GMB previously raised concerns about the privatisation proposals and urged residents to oppose the proposals in the consultation.

David McMullen, GMB branch secretary, said: “Labour Party councillors were elected to manage public services, and not give lucrative contracts to private companies.

“Putting profit in private company’s coffers and rich CEO’s pockets is never going to be cheaper and better for the people of Reading."

Government funding for council services has been cut by £58m since 2010 and the shortfall in funds could put vulnerable people at risk if the authority is unable to balance the books.

The Medium Term Financial Strategy, agreed by the council in February, means £42m in savings must be made by 2019/20.