The West London Waste Authority met on Tuesday 16 September 2025 to discuss financial updates, operational contracts, the business plan, and chief officer posts. Key decisions included approving the disbursement of Extended Producer Responsibility (EPR) funding to boroughs, investing in transfer station infrastructure, and approving consultancy support for communal collection business cases.

Finance Update

The Authority received an update on the financial position for the first quarter of 2025/26, which showed a surplus of £1.4 million compared to the budget, with a year-end forecast surplus of £0.07 million. However, an overspend of £1.5 million has been recognised in the full-year forecast for landfill charges. The report also detailed treasury activities, noting £2.0 million in investment income due to high interest rates, against a budget of £1.0 million. A Treasury Management Policy and Strategy was developed and approved to enhance transparency and financial oversight. The Financial Regulations were also updated to incorporate the CIPFA Financial Management Code.

The Authority noted the current financial position and forecast for 2025/26, approved the Director of Finance continuing to undertake the Treasurer role until the end of September 2025, and noted revisions to Statutory Chief Officers' conditions. Key Performance Indicators (KPIs) for 2025/26 were also noted, with some flagged as amber due to potential overspends and recruitment challenges. The movement in reserves related to EPR funding was noted, subject to approval in the WLWA Business Plan and EPR Update paper. The Treasury Management outturn for 2024/25 and update for 2025/26 were noted, and the Treasury Management Policy and Strategy was approved. Amendments to the Financial Regulations were also noted and commented upon.

WLWA 2025-26 Business Plan and EPR Funding Plan

The Authority discussed its 2025-26 Business Plan and the strategic priorities for Extended Producer Responsibility (EPR) funding. The plan aims to reduce costs and risks for boroughs arising from factors such as housing growth, flytipping, and regulatory changes. The report highlighted that the status quo presents high risks and costs for boroughs, with new legislation and regulatory changes on the horizon. Approximately 20% of the combined borough and WLWA EPR funding is linked to efficiency and effectiveness.

Key proposals approved include:

• The Authority working with Borough Directors to establish a formal Strategic Partnership Board for a whole-system investment approach.
• The disbursement of £3 million from the EPR recycling processing fund to boroughs, to be distributed via the PackUK EPR payments mechanism or Council Tax base if unavailable by the end of the financial year.
• Approval of up to £300,000 for consultancy support to complete communal collection and infrastructure business cases, jointly with WLWA and boroughs, to optimise the investment of £6 million in EPR funding.
• Approval of an additional £2 million spend on transfer bays at Victoria Road to manage additional materials and increase system resilience.
• Approval for the development of an Emissions Trading Scheme (ETS) levy to protect the current method of incentivising waste reduction and to incentivise fossil carbon reduction.

The report detailed the timeline for legislative changes, including Simpler Recycling by 2026, flexible plastics collection by 2027, and the inclusion of Energy from Waste (EfW) in the Emissions Trading Scheme from 2028. The EPR funding of £11.3 million allocated to WLWA presents an opportunity to invest in waste collection and processing systems. The plan aims to address challenges such as increasing recycling rates in properties with communal bins, which currently have low recycling rates and high contamination. The report also outlined the potential financial implications of the ETS, estimated at £20 million per annum, and the risk of increased costs due to waste growth.

Contracts and Operations Update

An update was provided on the Authority's waste treatment arrangements. The planned maintenance at the Severnside Energy Recovery Centre (SERC) was completed on schedule with minimal disruption. However, unplanned outages occurred at Viridor's energy recovery facilities, and the Abbey Road transfer station operated at reduced inputs due to staff shortages and site improvements.

The report detailed the performance of key operational contracts, including those with Suez for residual waste transport and disposal, Viridor for residual waste disposal, and BioCollectors for food waste. While most contracts were operating well, Viridor's facilities experienced mechanical issues, and the contingency facility at Ardley also had downtime. The Abbey Road Household Reuse and Recycling Centre (HRRC) and Waste Transfer Station (WTS) experienced unexpected staff absences, leading to waste inputs being diverted. Recruitment and training efforts have since stabilised staffing levels, and improvement works have been undertaken at the site. The West London HRRC Programme's timescales have been extended by twelve months. A procurement for residual waste from borough HRRCs and transfer stations is being considered to reduce pressure on existing contracts and provide a contingency option.

The financial implications of these operational issues were noted, including costs associated with sending residual waste to alternative disposal sites during the SERC outage and reduced income from trade waste at Abbey Road due to input restrictions. These costs have been included in the year-end forecast and set aside within reserves.

Chief Officer Posts

The Authority considered the vacant Managing Director post and the appointment of a Treasurer. Peter Tilston, currently Director of Circular Economy & Net Zero, was appointed as interim Managing Director until 31 March 2026. A specialist recruiter has been engaged to manage the recruitment process for the permanent Managing Director role, with a Recruitment Committee comprising Councillors Sheth and Neden-Watts delegated the authority to make the appointment and agree the starting salary.

The Authority also agreed to the immediate appointment of Ian O'Donnell as the Authority's Treasurer. Mr. O'Donnell, the former Treasurer, had offered to return to the role, subject to revised Terms and Conditions for Statutory Chief Officers. The report noted that the salary costs for both roles are within the approved budgets, with recruitment costs for the Managing Director to be covered by the existing budget. The appointment of these statutory chief officer posts was deemed necessary for good governance and to ensure leadership capacity.