Major changes to Havant borough bin collections loom as Norse to be axed in favour of in-house services
“The most important decision the council will make this year”, costing taxpayers in the Havant borough over £7 million, has been reviewed behind closed doors.
The future delivery of Havant Borough Council’s environmental services was reviewed at a meeting of the Havant Borough Council overview and scrutiny panel on May 22.
Currently, waste collection, street cleaning, and grounds maintenance are provided by Norse South East, a joint venture company between Havant Borough Council and Norse Commercial Services Ltd, a subsidiary of Norse Group.
At the meeting, cabinet lead commercial, Councillor Netty Shepherd (Green, Hayling East) said: “This is the most important decision the council will make this year.” The council needs to decide how and when the NorseSE services, budgeted at £7.923 million for 2025/26, transition to an in-house service model.
The council officer said the service needs to be more agile and any changes, even the preferred option of bringing the services in-house, will take two years to implement. The council will then have more control over the delivery of services that will align better with the council’s priorities, by 1 April 2028.
The public meeting started in open session and went into closed session for debate because one 48-page, business case document was not in Councillor David Keast’s (Con, Cowplain) meeting pack. He said it was an important decision and all the papers should have been available. The council’s lawyer said the meeting should continue because the papers had been available online and the councillors voted for a closed session.
After the meeting, a statement from the council said the panel considered and agreed the proposed recommendations to extend the current service agreement with NorseSE for a period of two years.
This, the statement said, would ensure the continued delivery of service, while a smooth transition to the in-house service model is undertaken. The current service agreement is due to end on 31 March 2026.
A business case also said all staff and assets would be transferred to the council from Norse ‘in the event of a termination’, or to an alternative service delivery provider.
The officer said there will be a reduction in costs from NorseSE from this year’s £7.923 million while bringing the service in-house. NorseSE proposed an annual fee of £7.362 million for year one (2026/27) and £7.579 million for year two (2027/28).
The officer’s report said transiting costs totalling £600,000 will be covered by the £900,000 savings from the NorseSE contract over the next two years. A £38,757 shortfall to pay for all fleet operational costs is required for the 2025/26 budget to be approved by cabinet.
The officer’s report said other options considered for the future service delivery and dismissed had included: continuation of joint venture for two or eight years, or forming a new local authority trading company (LATCo) or using a private sector management company, or creating a new local authority partnership.
The cabinet will make a decision on the NorseSE contract on June 4.
The borough includes Havant, Waterlooville, Emsworth, Bedhampton and Hayling Island.