East Suffolk Council will not be renewing its contract with its current facilities and waste management services supplier, East Suffolk Norse, and instead will be forming its own company to fill the role and save money.
There will be no redundancies and operational staff currently employed by East Suffolk Norse will be legally entitled to transfer to the new organisation, on the same terms and conditions.
The council said it will be seeking as seamless a transition as possible.
The council says the decision to create a Local Authority Trading Company (LATCo), will enable it to play a more direct and influential role in how important services are delivered.
The LATCo will operate as an ‘arms-length’ commercial business, separate to the Council and will be responsible for crucial services such as waste and recycling collection, grounds maintenance and street cleansing, though other services may yet join.
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.
Steve Gallant, leader of East Suffolk Council, said: “Our aim is to provide the best quality services possible with the resources available, always seeking to deliver improvement that benefits council taxpayers. 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."
Mr Gallant also thanked East Suffolk Norse for their service and sought to reassure existing operational staff about their roles in the new organisation.
He said: “The decisions we have taken are not a reflection on the service provided by East Suffolk Norse but are based on wider ambitions and always seeking best possible value for money."
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