Birmingham City Council has outlined privatising bin collections as a potential long-term solution to resolve the ongoing 19-month waste collection strike and reduce the risk of future industrial action. However, officials caution that any move towards privatisation should be postponed until after 2028 due to current operational challenges.
The internal report, leaked and obtained by BirminghamLive, presents several options for ending the protracted dispute between the council and the Unite union. Among these options is outsourcing the bin collection service to private companies, a strategy the council admits would be complex given the prolonged strike and scale of service demands.
Council officers note that Birmingham might not presently attract private contractors, emphasizing the need first to transform and optimise the service before entering a market engagement or procurement process. Launching such a process during ongoing operational and industrial challenges would likely yield limited interest and fail to deliver the best value for residents.
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The bin collection contract would be substantial, covering waste removal from 470,000 properties, including 340,000 kerbside homes and 130,000 multi-occupancy buildings such as flats above shops and HMOs. The contract would also need to accommodate expected housing growth over the next five to ten years.
Key responsibilities under any private contract would include:
- Routine residential waste and recycling collections
- Bulky waste and garden waste services, potentially linked to commercial or paid-for options
The council contemplates various outsourcing structures, ranging from awarding a single large contract to dividing services into lots, with provisions for revenue sharing or royalty payments to ensure council benefits.
The report stresses that while outsourcing is an option, it does not guarantee simpler or cheaper arrangements. The risks, including financial, legal, and contractual complexities, would shift rather than vanish. A full business case would be necessary to fully evaluate these factors before any decisions.
Importantly, these outsourcing or privatisation strategies are considered medium-term solutions, with earliest implementation projected post-April 2028. Current efforts remain focused on completing the waste transformation programme and optimising service delivery to strengthen the council’s position.
Officials warn that premature moves toward privatisation could jeopardise value for residents. When ready to re-procure services, the council would need to account for significant costs, potentially exceeding £1.5 million, involving specialist legal, technical, and financial advice, alongside governance and lead time requirements.
Today, approximately half of all local authorities in the UK partially or fully outsource their waste collection services. Birmingham’s deliberations reflect broader challenges local governments face balancing service reliability, cost, and industrial relations.