The cost of south Oxfordshire's waste management service is to be cut by extending the operator's contract.

Last month, S Grundon (Services) won a five-year contract to collect the district's refuse, starting next Monday (November 12).

The previous contractor, SITA, was sacked from its £1.7m-a-year contract by South Oxfordshire District Council for poor service.

Grundon's contract was to have been worth £2.6m a year, but a decision by the council's Cabinet to extend the comp- any's contract to seven years will lead to savings.

Having secured a longer contract, Grundon has offered to collect waste for £60,000 less per year.

Cabinet member Dr Nick Hards said: "It is equivalent to a £1 saving on council tax for an average Band D house."