It's a very difficult operating environment for local government. Councils are facing increasing pressures from all angles – inflation and a cost of living crisis from one side, an upcoming General Election with a lack of clarity around policy reform on the other, and all of this compounded by a predicted funding gap of almost £3bn over the next few years according to the Local Government Association. For local authorities without much cushioning from reserves, times are tough.

To address these challenges, local authorities need to be innovative and explore alternative models to deliver services at an economic cost without sacrificing quality. One such model that has gained traction is the establishment of Local Authority Trading Companies (LATCOs).