Purpose

This report will set out the
recommended approach for delivery of the council’s future
waste services, noting that several contracts are due to end in
July 2026 following procurement and contract extension
negotiations.
 
The “Future Waste
Services Delivery Arrangements” report will pull together and
replace numerous individual waste contract reports that were
previously referenced on the Forward Work Plan as coming to
December meeting of Cabinet. 
 
The overall summary report will
provide detail on the financial implications of the recommendations
and seeks approval for the extension or award of specific waste
contracts

Content

Resolved:

 

That Cabinet notes:

 
1)   
The updated estimates of Waste Service
budget requirements for the 2026/27 to 2028/29 Medium Term
Financial Strategy period, including the impact of future waste
contract decisions and mitigation opportunities to further reduce
future spend.
 
2)   
The updated estimates of capital
borrowing requirements for the waste service including associated
revenue costs.

 

That Cabinet approves:

 

Service delivery proposals:

 

Proposal 1 – to enter a Deed of Variation
of the Mechanical Biological Treatment Contract in 2027 to alter
the technology to be used to treat non-recyclable residual waste
and to treat food waste offsite using alternative treatment
technology.

 

Proposal 2 – to form a public-to-public
Local Authority Trading Company partnership with Participant 1 for
the provision of kerbside waste and recycling collection services
from 1 August 2026 for an initial term ending 31 March
2034.

 

Proposal 3 – to form a public-to-public
Local Authority Trading Company partnership with Participant 2 for
the provision of Material Recovery Facility services from 1 August
2026 for an initial term ending 31 March 2034.

 

Proposal 4 – to award a contract extension
to FCC Waste Services (UK) Ltd for the operation of eight
Council-owned Household Recycling Centres for the full duration of
the contract term, until 30 July 2034.

 

Proposal 5 – to not take up the
extension option with Hills Waste Services for the provision and
operation of two provider owned Household Recycling Centres and
close the two sites, Lower Compton and Purton, from August 2026 at
the end of the current contract period.?

 

Proposal 6 – to award a contract extension
to Hills Waste Solutions Ltd for the provision and operation of two
provider-owned Waste Transfer Stations until 30 June
2033.

 

Proposal 7 – to award a contract extension
to Hills Waste Solutions Ltd for the composting of garden waste for
the full duration of the contract term, until 31 July
2034.

 

Proposal 8 – to award a contract extension
to Hills Waste Solutions Ltd for the disposal of non-recyclable
residual waste for the full duration of the contract term, until 30
July 2034.

 

Proposal 9 – That external Extended
Producer Responsibility for Packaging funding, including confirmed
funding for 2025/26 and forecast funding for future years, is to be
drawn upon to deliver the waste transformation programme, including
but not limited to, mobilisation of new LATCO service agreements,
and contract extensions, and delivery of future service
changes.

 

Delegation to the Director, Environment, in
consultation with the Cabinet Member for Environment, Climate, and
Waste to take all steps to finalise the contractual arrangement and
to mobilise the future services as set out in Proposals 1 to
8.

 

Cost mitigation proposals:

 

Proposal 10 – to retain the current twin
stream recycling collection system, with separate glass, and
include the statutory introduction of bagged flexible plastics from
2027.

 

Proposal 11– to delegate to the Director,
Environment, in consultation with the Cabinet Member for
Environment, Climate, and Waste, to gather public feedback in 2026
on a change to the frequency of residual waste collections from
fortnightly to three-weekly in 2027.

 

Proposal 12 – to delegate to the Director,
Environment, in consultation with the Cabinet Member for
Environment, Climate, and Waste, to gather public feedback in 2026
on the closure of Purton and Lower Compton Household Recycling
Centres and implementation of an online booking system, for a trial
at Stanton St Quintin, Salisbury, Melksham, and
Devizes.

 
Reasons for Decision:
 
The proposals seek to achieve optimal best value
outcomes for the delivery of efficient and effective waste services
beyond 2026 whilst adapting to legislative change to ensure
continuity of high-profile statutory services.