Powys and Slough to take waste services in-house

Two more councils are to take their recycling collections in-house next year after concluding that the best value for the services lie in council-run operations.

Both Slough Borough Council in England and Powys County Council in Wales will take control of their services when long-term contracts come to an end.

Slough

Slough Borough Council will take all environmental services in-house, after its cabinet voted through recommendations at a meeting on Monday (19 September).

The council has a 15-year contract with Amey until the end of November 2017, but will move operations to a council-owned company upon its expiration after a review found that an in-house solution would deliver the ‘best value’ and flexibility for the council over a 10-year period.

The unitary council (responsible for both collection and disposal of waste) agreed in March to procure a new contract for its environmental services, but a financial appraisal has concluded that in-sourcing the work to a two-tier workforce would result in a 22 per cent saving of approximately £1.86 million, compared to a saving of £1.6 million with a private sector operator.

However, a report to the cabinet suggests that a ‘Teckal’ company, an arms-length company that is owned by the local authority, should be formed. This could then be used to generate commercial business and provide extra income for the council. It reads: ‘The key differential that influences delivery confidence and therefore the recommendation within this report from a financial perspective is the ability to trade and generate income for the council.’

The council, which last year had a recycling rate of 29 per cent has set a target of 60 per cent recycling by 2028.

Powys

The cabinet of Powys County Council also agreed last week (13 September) that recycling services will be taken in-house next year, ending a 15-year relationship with Cae Post, a social enterprise that has carried out waste and recycling operations for the council since 2002.

The council’s contract with the company, which ends at the end of March 2017, will not be renewed after an independent review found that significant savings could be achieved through the council taking on the recycling service itself.

A report to the cabinet written by Cllr John Powell, Portfolio Holder for Waste and Recycling, stated: ‘Whilst the historical contribution that Cae Post has made to recycling in Powys is recognised, the overall county approach has evolved in order to maximise recycling in line with Welsh Government targets and minimise expenditure. The operations undertaken by Cae Post are unfortunately no longer compatible with this approach.’

It goes on to explain that a study carried out using tools created by the Welsh Government’s Collaborative Change Programme, estimated that the council could save up to £700,000 a year by switching to ‘more efficient alternatives’, with ‘no financially viable options’ available through a renewed contract with Cae Post.

The social enterprise currently carries out the collection of recyclables from 2,500 properties across the county, the servicing of cans and plastics banks at community bring sites and the operation of a materials recovery facility (MRF) at Trewern.

The review using the Collaborative Change Programme, a government-run funding project to help Welsh local authorities make improvements to their recycling performance, found that by taking the kerbside collection and bring site services in-house, and transporting recyclables from bulking facilities directly to reprocessors, it would save around £400,000 annually. This figure rose to £700,000 when the possibility of installing baling equipment at one of the bulking facilities and having more sorting of materials at the kerbside was explored.

The cabinet therefore agreed to bring the services in-house from April 2017.

LAs taking waste in-house

A number of other local authorities have also taken the decision to move waste services in-house over the past year as they seek to drive down costs.

Last month, Bristol City Council awarded a long-term waste contract to the council-owned Bristol Waste Company, which took over the city’s waste services on a temporary basis last August after the council decided to end its contract with Kier.

Middlesbrough Council also moved to end its contract with Biffa early last September and integrate recycling services into its existing in-house refuse collection services.

Liverpool, Newcastle-under-Lyme and Hounslow have also announced plans or completed moves to take control of council waste services.

Reports to the cabinets of Slough Borough Council and Powys County Council are available on the council websites.