A leaked internal document from Birmingham City Council has revealed that privatising the city's bin collection service is being considered as a way to reduce the risk of future industrial action. The proposal comes amid a 19-month strike that has disrupted services for hundreds of thousands of residents.
The document, produced by council officials and signed off by managing director Joanne Roney in early March, was marked 'legally restricted' and shared in confidence with former council leader John Cotton. It has since been leaked to BirminghamLive.
Privatisation considered as 'de-risk' strategy
An appendix to the report sets out a series of 'key strategic outsourcing and market testing options', including an appraisal of full privatisation. Officials acknowledge that going to market now, with the service still unreliable and the dispute ongoing, would not offer 'best value' and would likely trigger limited interest from private operators.
They also note that the council would not be insulated from liabilities over equal pay if the service were privatised. The document states: "It would be prudent to let a main contract, whole or in lots, and then subsequently seek a delivery partner to operate and develop commercial and paid for services."
Massive operational scope
The report describes the formidable scale of the contract, which would be one of the largest of any local authority in the country. Responsibilities would include collecting rubbish from 470,000 properties, broken down into 340,000 'kerbside' properties and 130,000 multiple-occupied flats, flats above shops, and Houses in Multiple Occupation (HMO) properties.
Specific duties would include fortnightly collections of residual and general waste, fortnightly collections of recyclable waste (including glass, tins, cans, paper, and cardboard), weekly food waste collections, bulk container collections from multiple-occupied premises, and collections from flats above shops.
Timeline and costs
Officials stress that any move towards privatisation should not happen before April 2028 at the earliest. They argue that the most effective approach would be to complete the waste transformation programme, optimise the service, and then consider outsourcing options. Doing so now, they say, "is unlikely to deliver the best value for money solution for residents."
The likely cost of the procurement process is estimated at more than £1.5 million, once specialist legal, technical, and financial advice is factored in. The report adds: "A full business case would need to be prepared to fully understand the financial, legal and procurement risks associated with this option."
Alternative outsourcing models
The document outlines several potential models for outsourcing, including a private sector Tier One contractor (such as Veolia, Biffa, Suez UK, or FCC), a local authority trading company (Latco), a combination of the two, or a joint venture agreement. It notes that around half of all local authorities in the UK fully or partly outsource their waste collection services.
However, the report cautions: "Whilst outsourcing the waste and recycling contract is an option, that does not necessarily translate into a cheaper or less complex set of contractual arrangements... the risk dynamics change."
Context of the bin strike
The 19-month bin strike has cost the council an estimated £70 million, according to a separate leaked report. The dispute between the council and Unite the union has led to significant disruption for residents, with some 430,000 household bins needing collection every week. The leaked document also includes a controversial plan to 'dismiss the workforce' as a potential way to end the strike.
A council spokesperson declined to comment on the leaked document, stating that it was an internal discussion paper and not a formal proposal. The Unite union has criticised the privatisation suggestion, warning that it could lead to job losses and worse conditions for workers.
