Nottinghamshire County Council is set to discuss the formation of a new joint venture partnership to safeguard the long-term sustainability of its catering and facilities management service.

The proposal will be reviewed by the council’s Cabinet on Thursday, 6 February 2025, alongside potential adjustments to school meal pricing.

The Catering and Facilities Management Service provides high-quality meals, cleaning, landscaping, and maintenance services to schools, residents, and businesses across the county. However, the service is under increasing financial strain due to rising inflation such as rising food costs, wage rises and increasing energy prices - requiring a £2.5 million subsidy from the council in the current financial year. The upcoming National Insurance increases will add a further £1 million onto the staffing costs of the service from April 2025.

In July 2024, the Cabinet approved efforts to identify a preferred partner for the joint venture. The key priorities for the joint venture include maintaining high quality meals and services while reducing financial risk to the council, ensuring strong governance where the council retains influence over key decisions and providing clear assurances for staff currently employed in the service.

If approved, the joint venture would formally begin operations on 1 September 2025, with a comprehensive mobilisation period beforehand. This would include consultations with staff and collaboration with customers to ensure a smooth transition.

Councillor Scott Carlton, Cabinet Member for Communities and Public Health, said: “This is a significant step in ensuring a sustainable future for a service that is essential to many of our residents, schools, and businesses. The proposed joint venture would enable us to combine the council’s local knowledge with a partner’s expertise, ensuring high-quality service delivery while minimising financial risk.”

“The challenges faced by the council mirror broader financial pressures faced by public services nationwide. Rising costs, including upcoming increases in National Insurance contributions, have made it unsustainable to continue operating the service in its current form.

Councillor Carlton emphasised the council’s commitment to transparency and inclusivity throughout the process and said: “Our staff are the backbone of this service. Their dedication and hard work have been unwavering, and we are committed to ensuring a smooth transition. We are engaging with staff at every stage of this process to provide clarity and reassurance.”

“The proposed joint venture represents an innovative approach to addressing financial challenges while maintaining essential services for the county’s residents. The partnership would enable the council to reduce financial risks, continue delivering high-quality services, and ensure long-term stability for its catering and facilities management operations.

The Cabinet will also consider a proposed increase in the price of paid-for school meals, from £2.95 to £3.16, effective from 1 April 2025. The proposed 21p rise—which equates to a £1.05 increase per week per child —aims to address some external cost pressures while maintaining high quality food standards and minimising the financial burden on families.

Other options considered include an increase to £3.33 to keep the subsidy given to the catering and facilities management service from the county council at its current level. Keeping the meal price at its current rate at £2.95, and keeping other prices across the service the same, would increase the subsidy to £4.8 million for the year ahead.

The current cost of paid for school meals has been fixed at £2.95 since September 2023.

Councillor Carlton added: “We understand the financial pressures faced by families, which is why we have proposed an increase well below the 13% required to maintain current subsidy levels. Keeping the prices at its current levels would mean increasing the council’s subsidy to school’s catering by an additional £0.88million, which is simply not sustainable given the challenges we face.

“We explored a range of pricing options but remain committed to balancing affordability for families with the need to secure the future of the service.”

The council’s Cabinet will make its decision on the proposals on 6 February 2025. Further updates will be provided following the meeting.