Waste Management Levy Allocation Methodology Agreement (LAMA)

August 26, 2025 Cabinet (Cabinet collective) Key decision Awaiting outcome View on council website
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Salford City Council - Record of Decision (Cabinet)
 
I Paul
Dennett, City Mayor, in exercise
of the powers contained within the City Council
Constitution do hereby
approve:
Acceptance of the new Waste Management
Levy Allocation Methodology Agreement (LAMA) for the allocation of
waste disposal costs (the Levy) among the Greater Manchester
Combined Authority (GMCA) and the Waste Collection Authorities
(WCAs).
The Reasons are:
The
GMCA, as the Waste Disposal Authority has the legal power to issue
levies to WCAs under the Joint Waste Disposal Authorities (Levies)
(England) Regulations 2006. LAMA provides a clear, agreed
methodology for how those levies are calculated and
allocated.
The
agreement is designed to incentivise recycling and diversion from
landfill, aligning with national policy and environmental targets.
It ensures that WCAs are held accountable for their own performance
and that costs are fairly distributed based on actual waste volumes
and service models.
Options considered and rejected were:

Non-agreement of the LAMA. Without LAMA, WCAs risk being charged
unfairly or inconsistently. The agreement ensures that costs of
underperformance (e.g. failing to meet biowaste tonnages) are borne
by those responsible, not shared indiscriminately.
Assessment of Risk:
High. Without a
formal Agreement in place, individual decisions by local
authorities such as introducing charges for garden waste collection
could jeopardize the achievement of Guaranteed Minimum Tonnages
(GMTs). In such a case, Salford might incur costs for
shortfalls it did not cause, effectively subsidizing other Waste
Collection Authorities (WCAs).
The source of funding is: N/A
Legal Advice obtained:
Supplied By : The Shared
Legal Service (Tony Hatton)
Date:
20th June 2025
 
The Waste
Management Levy Allocation Methodology Agreement (LAMA) establishes
a strategic framework for allocating waste disposal costs across
the GM LA’s.  As the Waste
Disposal Authority, GMCA has the legal power to issue levies to
WCAs under the Joint Waste Disposal Authorities (Levies) (England)
Regulations 2006, and the LAMA provides a clear framework for how
they are calculated and allocated across GM.
The LAMA establishes a fair,
transparent, consistent process for ensuring accountability among
WCA’s which reduces financial risk and mitigates against any
disputes between WCA’s around cost
allocation.
Legal Services were involved in
drafting the original LAMA between GMCA and the other GM
authorities and are satisfied that it protects and clarifies the
interests of Salford City Council (and other GM
LA’s).
Financial Advice obtained:
Supplied
By : Karen Wilcha, Senior Accountant
Date: 12th June 2025
The Waste
Management Levy Allocation Methodology Agreement (LAMA) plays a
crucial role in maintaining fairness, transparency, and
accountability among Waste Collection Authorities (WCAs). Without
it, WCAs face financial and governance risks, potentially leading
to inconsistent levy charges and disputes over cost allocation. The
agreement ensures that responsibility for underperformance is
appropriately assigned rather than spread
indiscriminately. Additionally, WCAs that
choose to charge for garden waste may bear extra costs if this
affects biowaste tonnage and Guaranteed Minimum Tonnages
(GMTs)
It is
recommended that the new Waste Management Levy Allocation
Methodology Agreement (LAMA) be accepted.
Procurement Advice obtained: N/A
HR Advice obtained: N/A
Climate Change Advice obtained:
N/A
The following documents have been used
to assist the decision process:

·        
Report of Deputy City Mayor
and Lead Member for Finance, Support Services &
Regeneration
Contact Officer:  David Robinson          
                       
Telephone number: 0161 925 1002
The appropriate scrutiny to
call-in the decision is the Overview and Scrutiny
Board.        
           

Signed:
               Paul
Dennett          
     Dated:       26.08.25                                              
                       
City Mayor

For Democratic
Services use only

This decision was
published on 29.08.25                                            

This decision will
come in force at 4.00 p.m. on 05.09.25                   
                              
unless it is called-in in
accordance with the Decision Making Process Rules.

Related Meeting

Cabinet - Tuesday, 26 August 2025 10.00 am on August 26, 2025

Details

Decision date26 Aug 2025
Subject to call-inYes