Title

BUSINESS

Thinking the unthinkable

Chief executive officer of Norse Group Justin Galliford comments on how local authorities are now, more than ever, prepared to consider alternative service models.

I was recently chatting with colleagues from the materials recycling industry, about how the financial crisis is making local councils ‘think the unthinkable'.

This was in the context of the upcoming changes to waste regulations, but the principle applies to all frontline services.

There are three prime options when it comes to providing services; in-house delivery – through either a direct labour organisation or local authority trading company (LATco) – traditional outsourcing to the private sector, or forming a joint venture partnership.

To a significant number of people - members, councillors, employees and indeed residents – taking control of frontline services out of the hands of the council is now becoming unthinkable.

This is in no small part down to high-profile bad experiences that a few councils have had with outsourcing contractors during recent years. These cases centred, in many instances, on poorly designed agreements that caused problems for both parties; the impact however in all examples was felt by the end users of the services – the local residents.

As a result the reluctance on the part of councils to consider alternatives to in-house delivery of essential services is perhaps understandable.

Yet there are many shining examples of local authorities successfully working with partners to deliver, high-quality, cost efficient and sustainable services.

As the UK's leading LATCo, Norse Group now operates more than 20 joint venture partnerships with councils across the country.

Our local authority partners retain a high degree of control through share ownership and the governance structure which comes from the joint venture arrangement. This gives them direct influence over the partnership's strategy but does not inhibit the flexibility and commercial creativity that Norse, with its trading experience and knowhow, contributes.

Add to this the partnership model's other key element – the ability to trade externally, raise revenue and share the profits – and it is clear that partnership working is far from ‘unthinkable' but the most effective way for local authorities to address the financial and service delivery challenges which lie ahead.

www.norsepartnerships.co.uk

This article is sponsored content for The MJ

BUSINESS

Building digital foundations for social housing

By Lord Chris Holmes | 10 July 2026

Lord Chris Holmes looks at how AI and digital infrastructure can help social housing deliver safer, fairer and more efficient services.

BUSINESS

How can we make neighbourhood health work?

By Lee Peart | 10 July 2026

Healthcare leaders discussed local and national levers needed to scale and sustain healthy neighbourhoods at the LGA Conference and Exhibition in Bournemouth...

BUSINESS

Manchesterism and the future of local government reform

By Graeme McDonald | 09 July 2026

Graeme McDonald explains why meaningful devolution requires fiscal reform, stronger partnerships and empowered local government to deliver lasting change.

BUSINESS

Making the right choice for the next generation

By Emmet Regan | 09 July 2026

Emmet Regan looks at the factors to consider when choosing the best model for the delivery of children’s services during local government reorganisation.

Popular articles by Justin Galliford