Middlesbrough taking recycling collection in house

Middlesbrough Council has become the latest local authority to bring waste services in house, after it moved to end its recycling collection contract with waste management company Biffa.

The move will see the transfer of 16 staff into the council workforce to integrate the recycling service into the existing council-run refuse and green waste collection services.

It has been prompted by the falling market of reprocessing materials putting pressure on Biffa to pre-sort contaminated collections.

Reprocessing market behind switch

The council’s contract with Biffa has been in place for almost five years and was scheduled to run until April 2017.

Following a successful bid to the government’s ‘Weekly Collection Fund’ (the campaign behind which is reportedly being ended by the government) in 2013, the kerbside system was changed from pre-separated collection from a variety of material-specific boxes to co-mingled recycling in a single 240-litre bin.

According to the council, the new system had been ‘extremely popular’ with residents, with participation among the council’s 60,000 households increasing from approximately 35 per cent to over 80 per cent, and recycling and composting of household waste rising from around 22 per cent to almost 40 per cent.

However, a council report presented to Executive Member for Environment Cllr Tracy Harvey on Friday (4 September) stated that ‘a significant collapse’ in the market for reprocessed materials had resulted in materials being closely scrutinised for quality, with many loads being rejected due to the levels of contamination.

Because of this, Biffa had reportedly ‘fallen into dispute with their local materials reprocessor and as a result had indicated that the contract was now unsustainable and was attempting to pass on the increased cost [caused by the hand-sorting of material following collection and transportation of material to an alternative reprocessor] to the council’.

The scrutiny of materials delivered by Biffa also meant that the company implemented a policy of pre-inspection of bins prior to collection, which the council says had on one occasion resulted in up to 800 bins being left uncollected in a single day.

This, it says, ‘caused the council significant reputational damage and embarrassment, with many hundreds of residents complaining about the service’.

Biffa did offer the council ‘a revised financial proposal’ to continue the existing arrangement (requiring a budget increase of £400,000 per annum), with an alternative proposal to work with the council to transfer the service in house.

Upon the recommendation of the Executive Director of Commercial and Corporate Services, the second option was chosen.

Regarding the decision, the council argued: ‘Bringing the service in house is the option which provides the most cost-effective solution for the council, whilst ensuring continuity of customer service and protection against reputational damage and risk.’

Middlesbrough Council has secured a fixed-price reprocessing agreement with a local company, which it hopes will remove the risk of market volatility. Significantly, the contract gives the reprocessor responsibility over dealing with contamination, with the report alleging that it will be able to do so ‘without any requirement for pre-inspection of bins or post-collection sorting of the materials by the council’.

In total, the council expects the process of bringing the recycling service in house to require a budget increase of £300,000 (compared to the alternative increase of £400,000).

Moved caused by ‘unforeseeable’ events

Commenting on the switch, Middlesbrough Mayor Dave Budd said: “The issues we have faced with recycling collections in recent months are the result of a number of events occurring simultaneously which could not have been foreseen.

“However, the current collection arrangements cannot continue as they are, and I believe the option to bring the service back under council control provides the most cost-effective solution.

“We will continue to provide information to residents on a regular basis, and ask that residents continue to follow the recycling ‘dos and don’ts’ which should now be on the guidance sticker on their blue-lidded bin.”

A Biffa spokesman said: “A culmination of factors meant the council felt that the best future for the town’s recycling service was running it in house.

“This mutual and amicable parting does not, and should not, reflect badly on the high service standards provided by Biffa in Middlesbrough for some years, as the council has confirmed. 

“Biffa’s dedicated staff worked long and hard with the council and residents to drive up participation and recycling rates, and they can rightly feel proud of their achievements.”

Councils taking reins of waste services

Middlesbrough is just the latest council to move a waste service in house in recent months.

In June, Bristol City Council announced that it had ‘mutually agreed’ with Kier (formerly May Gurney) to end its waste collection and street cleansing contract. Mayor George Ferguson explained that the move had been made to give the city greater direct control over services as it sought to emphasise reuse and recycling.

Then, in August, Liverpool City Council announced plans to set up a new arms-length company, Liverpool Waste Management and Related Services, to operate its waste collection service. This, it hoped, would both cut costs and improve services, with a target of 55 per cent recycling by 2020.

Find out more about Middlesbrough Council’s waste service.