Councillor Tammy Hymas, Cabinet Member for Housing, approved the final award of a significant waste contract to Veolia ES (UK) Ltd. This contract, valued at over £230 million, will commence in April 2027 and covers waste collection and street cleansing services for housing estates. The decision followed a period of consultation with leaseholders regarding the external cleaning elements of the contract.

Veolia Waste Contract Award for Housing Estates

The Cabinet Member for Housing, Councillor Tammy Hymas, approved the final award of a waste contract to Veolia ES (UK) Ltd. The contract is worth £230,358,134 and will begin on 17 April 2027, with an initial term of eight years and an option to extend for a further eight years. This decision was made after considering observations from leaseholders regarding the external cleaning of housing estates, which forms part of the overall contract for recycling, waste collection, and street cleansing services.

The council was legally obliged to consult with leaseholders under Section 20 of the Landlord and Tenant Act 1985¹ because the contract exceeded 12 months and the costs for individual leaseholders would be over £100 per year. Cabinet had previously approved the provisional award of this contract in March 2026, subject to the completion of this leaseholder consultation.

During the consultation period, leaseholders raised several points, primarily concerning the transparency, fairness, and oversight of costs and service delivery. Some leaseholders expressed confusion and concern over figures mentioned in the consultation documents, particularly a £4 million figure which was clarified as the annual cost for housing estate external cleaning across the borough, not an individual charge. The council responded by explaining that this £4 million would be apportioned across all housing stock, including tenants and leaseholders, and that individual recharge amounts would be clarified later.

Other observations focused on the need for more consistent cleansing standards, improved digital reporting, and clearer performance monitoring. The council stated that the new contract incorporates a more data-driven approach to cost apportionment, strengthened performance management, defined service standards, and commitments to better communication and service coverage.

The report noted that while the council had engaged with leaseholders in 2024 regarding waste contract options, a formal Section 20 consultation was not undertaken at that stage. To mitigate this, a letter was sent in January/February 2026 to leaseholders explaining the implications of the long-term arrangements for housing estates' external cleaning and seeking their views. The council also indicated its intention to seek dispensation from the First-tier Tribunal (Property Chamber) for the initial consultation omission. The formal stage two Section 20 consultation, which concluded on 19 April 2026, received 15 observations.

The alternative option of not awarding the contract was considered, but this would have left the council unable to deliver statutory services from April 2027. The council concluded that none of the observations received provided a reason to halt the contract award. The cost of the external cleansing services, estimated at approximately £4 million per year, will continue to be recharged to residents through annual service charges, consistent with current practices.