The Shareholder Committee of Waltham Forest Council met on Thursday 18 April 2024 and approved the business plan for Waltham Forest Services Ltd for the upcoming year. The meeting also discussed historic debt within the company, with assurances given that the issue would be resolved.

Waltham Forest Services Ltd Business Plan

The Shareholder Committee approved the Business Plan for Waltham Forest Services Ltd (WFSL) for 2024/25. WFSL operates under the brand Servicestore and is a private company limited by shares, wholly owned by the Council. The company's objectives include operating commercially to deliver financial returns for the Council, providing social value through trusted services, and acting as an alternative supplier of services when requested.

The report highlighted that WFSL's performance against its 2023/24 business plan exceeded targets for financial contributions to the Council and the creation of local employment opportunities. This included establishing six apprenticeship posts, employing over 70% local residents, implementing a price freeze on services for residents, exceeding projected net profit by 10%, achieving an Excellent Trust Pilot rating, and establishing an accredited retro-fit company to support the Council's Warm Homes Fuel Poverty and Flood mitigation programmes.

During the discussion, concerns were raised by Mark Hynes, Director of Governance and Law, regarding historic debt incurred by WFSL. This issue had been previously raised at an Audit and Governance Committee, which requested its expedited resolution. John Hubbard, Managing Director of WFSL, explained that the company was actively working to resolve the historic debt situation. Rob Manning, Director of Return on Investment, added that a note had been issued to all budget holders to chase outstanding invoices and assured the committee that the matter would be addressed promptly. The Committee requested an update on the position to be provided to the Audit and Governance Committee.

The decision to approve the business plan was made, with the understanding that the company's performance and financial contributions are crucial for the Council's financial planning. The Council has prudently not included any dividends from WFSL in its budget or future Medium Term Financial Strategy (MTFS) to avoid reliance on the company's performance. The report also detailed the financial implications and risks associated with WFSL, including the potential loss of invested equity and annual contributions to costs if the company were to fail completely. The legal implications of WFSL being a 'Teckal' company were also noted, which allows the Council to award contracts without a full procurement process, provided certain conditions are met, including that more than 80% of its activities are in performance of tasks entrusted to it by the Council and there is no private capital participation. An Equalities Analysis screening confirmed no negative or adverse impacts on protected groups from the proposed business plan.