Council to decide on future of Waste Services

Lewis Smith, local democracy reporter

Waste management faces overhaul as council considers in-house vs outsourced services.

Council members in Bridgend have been briefed on potentially major changes to the future of waste and recycling services, with key discussions underway regarding whether the services should be brought back under direct local authority control or remain outsourced to an external contractor.

The waste contract for the council has been outsourced to private companies since 2003.

Evaluate

Following an interim takeover of the service by Plan B Management Solutions Ltd in April 2024, a two-year window has been set in order to explore various options available to the council before a long-term decision is made.

Plan B was appointed to temporarily run the service after the council ended its previous contract with Kier, the hope being that this would give them enough time to carefully evaluate the future direction of waste management.

Three potential paths have been put forward, including bringing the service back in-house, creating a local authority trading company (LATC), or re-procuring another external contractor.

In-House

Initially, council offers leaned towards continuing with outsourcing services, but cabinet members have since delayed committing to this approach, instead asking for further research into the benefits and challenges of the other models available.

During a recent scrutiny committee meeting, on September 30, councillors were presented with detailed reports outlining the pros and cons of each model. The in-house option, which would bring the service back under full council control, was identified as the most expensive at £9.37m annually.

Though this would also allow the council the most flexibility, full control over operations, and no pressure to turn a profit. The downsides being higher up-front costs and increased risks, particularly during the setup phase.

Establishing infrastructure, management, and IT systems would require significant up-front investment and resources.

Alternatives

The alternative proposal, setting up a local authority trading company, was costed at £9.02m annually. This option allows for some flexibility and the potential for commercial expansion, but it too comes with risks, again surrounding integration of new IT systems and the complexities involved in setting up the trading company.

Due to the tight timeframe for implementing any of these changes, the possibility of extending the current Plan B Management Solutions contract by a further year was also suggested. With a view to ensure enough time for a smooth transition, regardless of which model is chosen.

The council will need to weigh the potential benefits of having greater control and flexibility in waste management services against the risks and costs of such a move. Officers will now undertake further analysis of both in-house and LATC models, with more detailed findings expected in the coming months.

For now, waste and recycling services in the area remain under the interim control of Plan B Management Solutions Ltd, but major changes are on the horizon as the council prepares to make a long-term decision about the future of these essential services.