Home   News   Article

South Kesteven District Council to set up private company

SKDC news.
SKDC news.

South Kesteven District Council’s cabinet has agreed in principle to the creation of a council controlled company, which would enable the trade and procurement of services within the private sector.

Under the Localism Act 2011, councils must set up a local authority controlled company (LACC) if they wish to trade commercially. Other councils have already established similar incorporated companies, and now SKDC is looking to do the same, with a focus on housing services.

A report put forward by SKDC’s strategic director Tracey Blackwell to cabinet members stated: “The creation of a Local Authority Controlled Company (LACC) would provide the council with the opportunity to deliver services through a separate trading organisation, with the initial focus being to develop, acquire and manage housing and commercial property in the private sector.”

The report then lists expected benefits to SKDC from establishing the LACC, stating that it will: “Have a positive effect on the availability of good quality private rented housing in the district, bring forward the development of sites that might be more challenging for the private sector, create the conditions to develop a commercial environment that will permit the generation of new and increasing income streams in the future, and create a new property asset base which will increase in value over time.”

The report also stated that the cost of setting up the company, accounting and other specialist advice will not exceed £30,000, and refers to the scheme as a response to known future reductions in revenue support grants from central government.

A spokesman for SKDC said that the exact details are being finalised by working groups over the summer. They are due to report back to cabinet in September or October, before going to full council.


Iliffe Media does not moderate comments. Please click here for our house rules.

People who post abusive comments about other users or those featured in articles will be banned.

Thank you. Your comment has been received and will appear on the site shortly.


Terms of Comments

We do not actively moderate, monitor or edit contributions to the reader comments but we may intervene and take such action as we think necessary, please click here for our house rules.

If you have any concerns over the contents on our site, please either register those concerns using the report abuse button, contact us here.

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies - Learn More