East Devon District Council's cabinet met to discuss the creation of a local authority trading company (LATCo) for recycling and waste services, a delivery vehicle for the new community of Marlcombe, and the council's financial strategy for 2026 onwards. The cabinet approved recommendations to progress the LATCo, supported the strategic outline business case for the Marlcombe delivery vehicle, and agreed to recommend the draft financial strategy to the council.

Recycling & Waste LATCo Governance and Financial Proposal

The cabinet agreed to progress with the creation of a LATCo¹ to take over recycling and waste kerbside collections and associated services from 1 July 2026. The decision was made following a report which reviewed the updated business case for future service provision for recycling and waste. The council will loan no more than £2.8 million to the LATCo.

The cabinet approved the following recommendations:

• Operational activities of the LATCo will be funded through a revolving credit facility with the council, which includes the potential for security.
• Delegated authority is granted to the Director of Place, in consultation with the Section 151 Officer² and Portfolio Holders for Finance and Environment Operations, to make suitable arrangements and enter into a formal loan agreement with the LATCo.
• The Shareholder Committee will receive regular reports on the status of the loan, provided by the LATCo Company Board.
• A Cabinet sub-committee will be formed immediately to undertake the council's role as owner of the LATCo, being the Shareholder Committee.
• Law firm Bevan Brittan will be instructed to produce documents for approval by the Shareholder Committee, including:
  • Articles of Association
  • Shareholder Agreement
  • Governance arrangements for the structure of the Company Board
  • Terms of Reference for the Company Board
  • Advice on subsidy control legal requirements, including a submission to the UK Subsidy Register.
• Bevan Brittan will also develop changes to the council's constitution to set out the scope, powers, and limitations of the Shareholder Committee and the Recycling and Waste Partnership Board.
• Responsibility is delegated to the Chief Executive to appoint two to three staff to act as temporary company directors during the formation stage of the company, until the selection process for non-executive directors is completed. All future Company Board appointments and dismissals are delegated to the Shareholder Committee.
• The Chief Executive, in consultation with the Leader and appropriate Directors and Portfolio Holders, will ensure effective ongoing oversight of the LATCo's development and make any required subsequent changes to its structure and employee appointments.

The council aims to establish the LATCo to provide sustainable and efficient recycling and waste services for the community. The LATCo is intended to operate on commercial principles, and the revolving credit facility is seen as the most flexible and transparent funding option.

Delivery Vehicle for Marlcombe

The cabinet supported the executive summary of the strategic outline business case for establishing a delivery vehicle for the new community of Marlcombe. They also agreed to receive a further report setting out the full strategic outline business case, as well as subsequent reports regarding the terms of reference for an interim vehicle, and the full business case for a delivery vehicle for the integrated proposal including the Cranbrook expansion and Enterprise Zone areas.

The cabinet recommended to the council that a budget of £350,000 be made available from the new communities reserve to enable the development of the business case alongside progressing further technical work, matching potential funding being made available by Homes England³.

Councillor Todd Olive, Portfolio Holder Place, Infrastructure & Strategic Planning, stated that the report was part of a large and complicated jigsaw that, when assembled in the right order, would in the coming years complete the picture of a vibrant, sustainable, wellsupported community called Marlcombe.

The council aims to establish a delivery vehicle capable of ensuring that the vision for Marlcombe is translated into practical delivery on the ground. The delivery of a new town is a complex, long-term endeavour that necessarily involves multiple stakeholders. A key learning point from Cranbrook was the need to establish a dedicated delivery vehicle from the outset to provide the necessary focus and resources to realise the ambitious vision for a place, including integrating both physical and social development.

Financial Strategy 2026 Onwards 2026 – 2036

The cabinet agreed to recommend the draft financial strategy 2026 onwards (2026 – 2036) to the council for adoption and direction outlined in balancing future budgets.

Councillor Sam Hawkins, Portfolio Holder Finance, stated the real financial challenges ahead, not least from the Fairer Funding Review⁴ and the uncertainty around local government reorganisation. He said that responsibility now was to ensure EDDC continued to make sound and responsible financial decisions in the best interests of its residents.

The strategy includes a ten-year medium term financial plan (MTFP) which looks ahead over that period to give a projection of the council's financial position with actions needed to ensure financial sustainability and the ability to set annually balanced budgets.

The strategy's focus is dealing with the next two years of still being a council with the effects of significant funding reductions from the FFR. The strategy records and considers the funding of the key legacy projects the council wants to deliver in its remaining time.

Councillor John Loudoun, Deputy Leader & Portfolio Holder Corporate, Council & External Engagement, stressed the need to be responsible with public money and for balanced accounts, for maximum retention of services and minimise putting up fees and charges for EDDC's residents.

Exclusion of Press and Public

The cabinet agreed to exclude the public (including the press) from the meeting as exempt information, of the description set out on the agenda, is likely to be disclosed and on balance the public interest is in discussing this item in private session.