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

Budget: Council tax surcharge to 'support funding for local government services'

By Dan Peters | 26 November 2025

Revenue from the high value council tax surcharge will be used to ‘support funding for local government services’, Budget documents have confirmed.

BUSINESS

Policing reform shouldn't be piecemeal

By Sir Bob Neill | 26 November 2025

The abolition of police and crime commissioners is a start, but no substitute for the scale of reform required, writes Sir Bob Neill.

BUSINESS

Lambeth to house more families out of area

By Paul Marinko | 24 November 2025

Lambeth LBC is proposing to house more people further out of the borough as housing pressures in London worsen.

BUSINESS

If devolution is about identity, culture must be in the script

By Stephen Crocker | 24 November 2025

Culture must be part of the devolution playbook if the new Norfolk & Suffolk Combined Authority is to go the distance, argues Stephen Crocker.

Popular articles by Justin Galliford