Council sets up ‘arms-length’ business to deliver key services

East Suffolk Council is to create a Local Authority Trading Company (LATCo) to help it deliver key council services.

The LATCo will operate as an ‘arms-length’ commercial business and will be responsible for crucial services such as waste and recycling collection, grounds maintenance and street cleansing.

This means that East Suffolk Council will exercise its right not to renew the contract it holds with Norse for the provision of operational services, and therefore this contract will come to a natural end in July 2023.

Operational staff currently employed by East Suffolk Norse, will be legally entitled to transfer to the new organisation, on the same terms and conditions, through ‘protection under law’ TUPE legislation.

‘Our aim is to provide the best quality services possible with the resources available, always seeking to deliver improvement that benefits council?taxpayers,’ said Cllr Steve Gallant, leader of East Suffolk Council.

‘Since our formation in 2019, East Suffolk Council has been clear about its progressive ambitions for the district and the way that it delivers the key services needed by our communities.

‘As part of this approach, we undertake regular reviews of all partnerships to ensure that they are delivering the best value for East Suffolk. This new trading company will allow us closer control of key services so we can maximise our support for, and investment in, our communities and local economy. We will also explore the commercial potential of these particular services, so that we can deliver profit which will be invested straight back into our communities.

‘And by keeping money closer to East Suffolk, this change will help deliver the council’s strategic aims. For example, we believe that the new trading company will help East Suffolk deliver environmental changes – such as new fuels, vehicles and approaches to waste management – that support our environmental ambitions.’

The creation of the?LATCo?focusses on the transition of a ‘core’ bundle of services. However, the council said that it will consider transferring other services to the business.