East Cambridgeshire District Council approves establishment of Local Authority Trading Company

At East Cambridgeshire District Council’s full Council meeting, on Thursday 7^th January, the members approved the establishment of the Local Authority Trading Company (LATC).

The Company will act as the commercial arm to the Council, allowing it to generate additional funds which will be reinvested back into the services for local residents.

The Government’s funding support to all local authorities is reducing and, although this Council has a balanced budget for the next two years, it faces considerable challenges to generate more of its own income to support front line service delivery.

It means that even a district council like East Cambridgeshire (with a balanced budget for the last three years) has needed to look at ways to plug the inevitable gaps that would be left by the forthcoming reductions to funding.

Dr Paul Remington, who has a PhD in economics, and who has worked and advised on large financial projects worldwide within both the public and private sectors, has been appointed as Chairman of the LATC.

He stated: “The formation of the Company will enable the Council to be more self-sufficient in terms of funding and balancing budgets, with each stakeholder being considered. All options will be explored so that the best possible outcomes are achieved. The Company will make sure that each pound coin is not only well spent, but, where that pound coin can bring benefits, those are secured.”

“It’s not just about dealing with what’s happening now, it’s about being a custodian for future assets and realising them today so that all the requirements of East Cambridgeshire’s communities carry on being met. The Company is an innovative approach that will continue to safeguard the growth and prosperity of the District leading into the future by giving an added level of security to public service provision for years to come. The more the Company succeeds, the greater benefits there will be available to East Cambridgeshire’s residents without necessarily paying extra taxation.”

Dr Remington went on to explain that the establishment of the Company will also help to create a more confident, competent, commercially astute internal staff, used to making more financial decisions and analysing risks, which will add to the overall effectiveness and capabilities of the Council in fulfilling their roles.

The objective is to have the LATC commencing trading in April 2016.