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18 November 2018
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SOUTHAMPTON CC POISED TO CREATE NEW TRADING ARM

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Southampton City Council offices © Shutterstock


30 August 2017 | Herpreet Kaur Grewal


Southampton City Council is close to establishing a Local Authority Trading Company (LATCo) – a wholly owned trading arm that generates surplus to reinvest in services.

 

The public, partners and staff have provided their feedback on the proposals through a formal consultation process, which ended on 13 July. The feedback has now been compiled and been discussed at a cabinet meeting.

 

The consultation sought views on the principle of creating a LATCo, the services the LATCo might deliver, and whether to develop the company with or without external ‘improvement partners’.

 

The consultation feedback showed that 63 per cent agreed to create a Local Authority Trading Company and most respondents (57 per cent) said they felt that the council should establish a LATCo without any external improvement partners.

 

Based on this feedback, the council is proposing to go ahead with the creation of a LATCo without improvement partners, and will be looking at how to ensure the necessary capacity and expertise are available to make it a success.

 

More detailed plans will be taken to the council cabinet in January 2018, after which time further consultation with residents, tenants and staff is expected.


A similar model is Norse Group, which is Norfolk County Council’s trading arm.