Decision

Waste Management Levy Allocation Methodology Agreement (LAMA)

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Date of Decision: August 26, 2025

Purpose:

Content: 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