South Kesteven District Council's (SKDC) ground maintenance services is likely to be brought back in-house, five years after the council created a private company.

A loan of more than £500,000 from the council to the company would be written off.

A joint meeting of the Environment and Rural committees unanimously recommended that the council carry out its own grounds maintenance in future.

Environment SK is the latest in a series of the council's money-making ventures to be wrapped up.

The arms-length company was set up in 2018 to carry out the council's grounds-keeping whilst also competing in the private market. However, it struggled to find other business.

Opposition councillors criticised the venture, asking how much it had cost.

The committees unanimously voted to in-source grounds-keeping services.

Councillor Ashley Baxter (Alliance SK) said: "With Gravitas Housing, we found out we weren't house builders. With Environment SK, we've found out we're not grass cutters either – perhaps we should stick to what councils are supposed to do without trying to make money."

Details of the finances were discussed behind closed doors for nearly an hour during the meeting.

Councillor Phil Dilks (Alliance SK) said: "We did this to make money and free us from shackles of council regulations. Things obviously haven't worked out as it was hoped.

"Mrs Thatcher will be spinning on her plinth outside the council chamber to see how the Conservatives have given up on free market and returned to socialism."

Environment SK was set up to carry out the council's grass-cutting and other grounds maintenance in 2018 but struggled to find other business.

A £571,000 loan was provided for the company to buy equipment and vehicles, but it was later forced to take a loan holiday to "re-stablise" its cashflow.

Chief Financial Officer Richard Wyles confirmed that the remaining sum would be written off should Environment SK be absorbed into the council.

There are no public figures on how much has been repaid to date.

Councillor Mark Whittington (Conservative) said that integrating the services with the councils' Street Scene and Big Clean teams would improve efficiency.

"The current Environment SK service is reliant on seasonal and agency staff, and has real problems with recruitment and retention," he said.

"In-sourcing means we can look at building joint teams to have a core of permanent staff and are signed up to our culture of quality. During autumn and winter, staff can move towards other activities than grass-cutting."

Councillor Sarah Trotter (Conservative) agreed in-sourcing would offer "greater quality control and flexibility."

The move is likely to be approved by South Kesteven's Cabinet on Tuesday.