Justin Galliford discusses how partnership working can help councils deal with uncertainty
As councils across the country face an increasing number of unknowns, at Norse Group we are convinced that partnership working will become even more attractive.
The MJ has reported widely on the financial pressures faced by councils, and it seems to me that the lack of certainty only adds to the challenge. More legislation is coming down the line aimed at rolling out the Environmental, Social and Governance principles. Net zero targets, financial disclosure obligations, UN sustainability goals, new procurement regulations, and the Government's green agenda all present further unknowns for councils.
Take the example of waste collection in the soon-to-be-law Environment Bill. There has been much talk around the introduction of a Deposit Return Scheme on glass bottles. However, as yet the financial impact of the reduction in councils' income generated from the sale of glass collected for recycling is a large unknown. I am however fairly certain that central government will not provide sufficient funding to close the gap.
The mooted standardisation of waste and recycling services will have a significant knock-on effect. Many councils' outsourced contracts will need to be renegotiated, a protracted and potentially costly exercise – not helped by not knowing what these changes are.
The joint venture partnership model is founded on ethical commercialism, and has always offered a number of benefits to local councils: greater operational efficiency, the ability to trade externally and develop revenue streams, shared objectives, mutual social and environmental values and robust public sector governance.
Crucially, it also means that councils have a high degree of control, and with this comes the flexibility to respond quickly to changing needs. This means that these unknowns can be handled effectively, easing the pressure on local authorities.
In my next column, I will discuss how joint ventures can help councils meet the financial challenges of inflation by developing external revenue streams.
Justin Galliford is chief executive of Norse Group
