London, United Kingdom, May 30, 2019 --(PR.com
)-- Due to growing budget constraints within Local Authorities, a commercial subculture has been steadily growing throughout the country. The businesses that have been set up as a result are called Local Authority Trading Companies or LATCos for short. They are an alternative services delivery model that allow Local Authorities to trade and invest the profits back into their own services.
Dave Ward, Managing Director of Lampton 360, an existing LATCo, explained: “There are longer term advantages in setting up a Local Authority Trading Company. By creating a company with a strong brand image and customer base, coupled with an efficient service offer, a continuous source of revenue for its shareholder will be a constant. This can either be via efficiency savings or profits, or both. As LATCo’s evolve there will be more collaboration across LATCo’s and/or local authorities as the drive to provide better public services in different ways gathers momentum. Given the collapse of larger commercial organisations that have provided services to the public sector, there are lessons to be learned from over-stretching the service offer to sound financial management. Keeping money within the public sector for the public sector is the way forward.”
Despite the success of many LATCos, things remain far from perfect. For every successful LATCo there are many that have struggled to make the commercial transition, or worse still fail altogether. These challenges resulted in several LATCo’s coming together to form the LATCo Network - the country’s first federated body for LATCo’s. There are over 1100 LATCos operating across the country delivering a range of services from social care to environmental services. The LATCo Network was formed to offer support to members so they can innovate, thrive and find new collaborative ways of working. This will allow the development of sustainable businesses that exist for social good, delivering services locally and reinvesting their profits back into people.
If you would like to find out more about the LATCo Network, visit the website at www.latco.network.