The Shareholder Reference Group meeting on Tuesday 14 July 2026 was scheduled to review the performance and strategic direction of Redbridge Civic Services Ltd (RCS). Key discussions were expected to focus on RCS's operational and financial performance, its annual work programme, and risk management.

Chair of RCS Board Report - December 2025 to May 2026

The meeting was scheduled to consider a report providing an overview of Redbridge Civic Services Ltd's (RCS) performance, governance, and principal risks for the period between December 2025 and May 2026. The report indicated that RCS had remained operationally resilient, with its core waste service delivered at a stable level. However, the period was characterised by increasing financial pressures, workforce challenges, and ongoing uncertainty regarding insurance liabilities.

The Board's strategic focus for the coming year was outlined as strengthening organisational resilience and governance. This includes addressing insurance-related uncertainty, improving workforce sustainability by reducing sickness absence and agency reliance, maintaining service performance amidst financial pressures, and driving improvements in key operational indicators such as missed collections. Enhancing assurance over vehicle compliance, progressing strategic matters related to pensions and compliance, supporting the client's service review objectives, and ensuring effective integration of new Board leadership capacity were also highlighted as priorities.

The report requested the Shareholder to provide a clear position on insurance liabilities, approve contract uplifts to facilitate pay negotiations, and confirm continued alignment on governance and strategic direction expectations. The recommendations included noting the company's overall performance, achievements, and challenges, as well as its year-end financial position, which showed a profit of £306,000 before accounting for outstanding insurance liabilities of £390,000. The report also noted that while the underlying business remained stable, future financial performance was subject to uncertainty regarding cost inflation, particularly for fuel and agency staffing, and unresolved insurance liabilities.

RCS Quarterly Performance Report - Q1 2026/2027

This report was scheduled to provide the Shareholder Reference Group with an overview of Redbridge Civic Services Ltd's operational and financial performance for April to June 2026. It was expected to highlight achievements and emerging pressures, and outline key actions underway to maintain service continuity, compliance, and delivery against the business plan.

The report indicated a positive overall position for RCS, with strong delivery across core services, a stable underlying financial position, continued client confidence, and clear progress against business plan priorities. Operational performance for refuse and recycling services was reported as being at or above targets (99% achieved). The company was also noted to have made tangible progress on strategic priorities, including preparations for the borough-wide rollout of food waste collections and wider service improvement activities.

While the period presented operational and financial pressures, particularly concerning sickness absences, agency dependency, and fuel cost increases, these were being actively managed. The report aimed to provide assurance that RCS remained operationally stable and financially resilient, with a focus on improvement, while acknowledging the need for continued management attention on operational resilience, financial discipline, and risk management. The recommendations included noting the overall performance, emerging pressures, and management actions.

The report detailed operational performance, including a 99.96% average collection rate over the previous six months and a surplus of £306,000 in the last financial year. It also highlighted that the contract continued to represent value for money through efficient resource deployment and minimisation of duplication. However, the report also noted that economy and efficiency were being constrained by material cost and workforce pressures, including inflation, sickness absence, and uncertainty surrounding insurance liabilities.

The financial implications section indicated that RCS was funded by quarterly contractual payments from the London Borough of Redbridge. The report noted an operating surplus of £306,000 for 2025/26, with £390,000 in unresolved insurance liabilities. Future financial performance was subject to uncertainty relating to cost inflation and unresolved insurance liabilities.

The report also provided an operational overview for April to June 2026, noting that over 99% of collections were completed as required. It detailed progress on the food waste service rollout, with vehicles ordered for a November 2026 commencement. Health and safety data was presented, including close calls, road traffic collisions, and personal accidents. A RIDDOR-reportable accident involving a wrist injury was noted, with manual handling refresher training arranged. The report also addressed the impact of severe weather in May, which led to operational disruption and some service non-completions.

Significant attention was given to sickness absence and agency use, with an increased reliance on agency labour since February 2026 due to higher-than-expected sickness absence. This was attributed to the earlier commencement of the Garden Waste Collection service and an increase in sickness absence among permanent employees. The report detailed mitigation measures, including refresher training, strengthened driver compliance, route rebalancing, and a review of sickness absence arrangements.

Financial risks, including fuel price increases and agency staffing costs, were discussed. The report noted a significant rise in diesel prices and outlined RCS's monitoring of fuel prices and investigation into fuel hedging options. Agency costs had exceeded expected levels due to increased sickness absence, though this was partially offset by lower employment costs for staff with limited sick pay entitlement. Changes to the Employment Rights Act regarding Statutory Sick Pay from Day One were also highlighted as a material financial impact requiring assessment and budgetary provision.

Service improvement initiatives included engaging external HR and payroll services, and confirmation of a contract uplift of 2.8% based on the April CPI value, allowing for pay negotiations with the Union. New banking services were implemented to utilise available funds more effectively and generate interest income. RCS was also considering engaging an external Health and Safety support provider to strengthen its compliance and risk management framework.

The financial performance for Q1 2026/2027 showed a projected loss of £29,259, with a year-end projection of a £210,879 surplus. The report noted that the current budget would require review to align with operational realities, particularly regarding revised cost assumptions. Key Performance Indicators (KPIs) were discussed, with a focus on missed waste collections, which are measured against a contractual target of 60 per 100,000 households. Refuse and recycling collections were performing within targets, but garden waste and food waste collections showed some amber and red ratings.

SRG Annual Work Programme 2026/2027

This report was scheduled to revisit the Shareholder Reference Group (SRG) Forward Work Programme, which was agreed as part of a Cabinet Report in April 2021. It aimed to identify changes and seek approval from the Shareholder for amendments to the 2026/2027 work programme. It was proposed that the work programme would be a standing item at each SRG meeting to allow for ongoing changes and additions. The recommendations included that the Council, as Shareholder of Redbridge Civic Services Ltd, consider the current work programme and any desired amendments or additions prior to its agreement. The report noted that several items from the Forward Programme were already on the agenda for this meeting, including the setting of the Annual Work Programme, RCS Quarterly Company Performance Report, Chair of RCS Board Report, and Consideration of Portfolio Risks Management. Other proposed items for future SRG meetings included the Annual RCS business plan, a review of Company Governance, and an Annual Review of SRG terms of Reference.