Hull City council backtracked on a promise to award Kier a share of the work after original contractor Connaught collapsed.

In-house company Kingston Works Ltd will take over the ten-year contract from April 2012 to look after the council’s 28,000 homes.

Work is currently shared between Kier and KWL.

The decision has come under fire from opposition Liberal Democrats who fear it will not provide value for money.

Deputy Lib Dem leader Councillor Mike Ross told the Hull Daily Mail:  “KWL has been a massive success since it was set up by the council in 2006.

“Its success has been part due to the fact it has been in competition with other companies.

“The decision by the council’s cabinet removes any element of competition.

“The process has been narrowed to the exclusion of all other potential contractors, with no robust assessment of their capability.

“This means there is no way of really knowing if this contract will be the best value for tenants or the taxpayer.

“If this is the sign of the way the Labour cabinet are going to make decisions then it raises concerns about the awarding of any future contracts.”

But Councillor Phil Webster, portfolio holder for finance, said: “After a robust assessment I am very satisfied that the repairs and maintenance work will be staying local and will offer continuity and value for money for council tenants.”