Slough Borough Council has decided to take its waste services in-house and plans to bid for commercial contracts.
On 19 September, its cabinet voted to rescind a decision in March to procure an external contract for the delivery of waste collection and other environmental services.
It has now chosen to create a Teckal company, with the council as the sole shareholder for the insourced provision of services from December 2017.
This will terminate its long contract with Amey, which is set to run until 30 November next year.
A report considered by the cabinet found that potential savings of 22% from its £8m budget were possible by insourcing its services and only 19% by outsourcing.
This falls short of the council’s 30% target, but it says an insourced contract could allow the council greater flexibility to bid for other contracts.
The report says: “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.”
Under the Public Contracts Regulations 2015, up to 19% of the Teckal company’s activities may take place on the open market.
The council has set itself the target of recycling 60% of its waste by 2028 as part of a local ’wellbeing strategy’.