Leader gives updates on food waste collections implementation
Leader of the Council, Pip Allnatt, addressed Council on Thursday 12 February, providing an update on the implementation of food waste collections across Melton Borough.
"The budget papers this evening set out the challenge of implementing food waste collections. I am sure Members will wish to comment on this as part of the debate, but for now I wish to correct the record on some inaccuracies that I have seen reported in the media.
"The Council has consistently remained committed to implementing food waste collections, and remains so, but has repeatedly made clear that this would be dependent on the Government following through on its repeated assurance that it would fund the costs arising from the new statutory duties introduced through Simpler Recycling. We cannot allow our financial sustainability to be undermined because new burdens are not properly funded.
"We and councils across the country have expressed repeated concerns about the delays in funding announcements for food waste and the lack of transparency in the recent finance settlement. Up until the settlement was announced, the Council has made appropriate preparations and continued to develop implementation plans in good faith and was relying upon the repeated assurance that any new revenue burdens will be fully funded.
"We had already seen a shortfall in capital funding allocations for vehicles and caddies, receiving only £581,000, and having to top it up by a further £239,000 of our own capital receipts to finance what was required. Despite repeated challenges to DEFRA (Department for Environment Food and Rural Affairs) on this, no further capital funds were forthcoming. With the budget confirmed last year, orders were placed accordingly for the vehicles and food caddies, but significant demand pressures in the supply chain means the vehicles are not due to be delivered until later this year - similar to many other councils. No payments have yet been made, and none will be released until the orders have been fulfilled.
"Alongside placing these orders, we have undertaken modelling and made appropriate preparations to implement the service with our waste collection partner. We have, however, not been able to initiate formal negotiations or procurement arrangements to vary the contract until the new burdens funding was confirmed by Government. Given food waste collections will represent an additional cost of nearly 10% of our total budget, to enter a new contract without confirmation of funding would have been extremely ill-advised, and had we done so, given the outcome of the finance settlement, we would now be in a dire situation given government's failure to provide sufficient resources.
"Setting aside the shortfall in funding, the delays in funding announcement, and the lead times arising, would have meant the earliest we could have commenced food waste collections would have been January 2027.
"The finance settlement though has fundamentally changed things. I will not rehearse in detail what our Portfolio Holder will cover in the budget debate later, but suffice to say, at a time when we have an additional 10% cost burden being placed upon us, our funding has gone down by 5%. To implement food waste in line with the original timetable would exhaust our reserves by 2028/29. The magnitude of savings required to mitigate this would decimate council services, jeopardise other statutory provisions, and significantly weaken the organisation’s ability to contribute positively towards Local Government Reorganisation (LGR) transition. It would also lead to the transfer of significant risks into any new unitary council. I am clear this would be unacceptable and an act of gross irresponsibility.
"Accordingly, we have had to reset the timetable and are now working towards implementation from April 2028. To support this we will work to defer delivery of our vehicles and caddies until nearer this time. This approach will enable the council to maintain its financial stability, contribute positively towards LGR transition, whilst also enabling us to secure best value for money for the food waste service, and in the context of potential greater economies of scale afforded through LGR.
"We have repeatedly raised our concerns regarding the finance settlement and delays in funding announcements with the Ministry of Housing, Communities and Local Government (MHCLG) and DEFRA and have also advised DEFRA of our intentions to delay implementation of food waste, something we are aware a number of other councils have already done, and we hope that they support what we think remains a pragmatic and prudent approach."
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