LATCos – “in conversation with”

Join our virtual event on 30 November to be part of the discussion about the importance of governance in relation to LATCos in conversation.

Our speakers are three panellists drawn from different parts of the sector 

• Max Caller who has experience of both council side and as a Board director of a LATCo
• Leah Mickleborough, Norwich City Council, owner of two LATCOs
• Simon Howick, MD of Oxford Direct Services talking from the perspective of a LATCo 

They will share insights to provide a vivid backdrop for anyone with a LATCo or thinking of setting one up in the current challenging economic environment. 

High-profile failures are prominent, but many local authority trading companies continue to thrive, taking advantage of the freedoms enjoyed by operating independently in the commercial world. However, the current economic and fiscal landscape is particularly challenging, so it is important for all councils to be aware of the potential impact on their companies, regardless of how successful they are. 

We have updated our Local Authority Company Review Guidance with additional questions for elected members to ask to ensure they make informed decisions. Drawing on our experience, here are three key matters that should be the focus of your attention if you have a local authority trading company:

The council’s governance as shareholder

It is not uncommon for councils to exert excessive control, preventing the company from having the necessary freedoms to operate commercially. Letting go of operational detail and focusing on strategic oversight is important.  

Contract management

At an operational level, contract management is sometimes not executed with the necessary formality. As a result, poor performance may go unchecked. Having operational Boards to ensure targets and performance measures are being achieved is advisable and can avoid matters escalating and becoming a strategic level problem.  

The entity’s governance structure

The Board is key to the company being successful, but often its composition and the way it operates prevents this from happening, e.g. a lack of suitably skilled non-executive directors, including Chairs with sufficient experience and gravitas to enable the company to flourish on its own.

Can we help?

The webinar happened on the 30 November 2023.

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