A Devon council that has opted to set up its own waste and recycling company is predicting it could save itself nearly three-quarters of a million pounds within two years.
East Devon District Council has voted in favour of setting up a so-called Local Authority Trading Company, or LATCo, to run its waste and recycling services once its contract with external supplier Suez ends in June next year.
And fresh details revealed in budget papers suggest councillors expect it to cost them £700,000 less with their own firm running it over the next two financial years.
Documents show that the council is predicting a saving of £525,000 in the 2026/27 financial year and £175,000 in the 2027/28 financial year.
The council has set aside just over £640,000 from its Transformation Fund to set the new waste firm up, and has also identified another £314,000 that could be spent on it in the next financial year, which begins in April.
All staff currently employed by Suez to deliver services for EDDC will transfer to the new company, maintaining their current pay and conditions, in line with the Transfer of Undertakings (Protection of Employment) regulations.
East Devon ranks sixth in the amount of recycling collected in England, and has started a move towards an electric vehicle fleet for recycling operations.
Cllr Geoff Jung, East Devon District Council’s portfolio holder for coast, country and environment, said the Suez team had “delivered an excellent service”.
“Their efforts have contributed to our outstanding recycling rates, with over 60 per cent of our waste being recycled” he said.
“The decision to manage our own services has not been taken lightly but it will put us in a better position to adapt to new legislation.”
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