Agenda item
Budget Amendment Proposal - Weekly Food Waste Collection Service and Additional Extended Producer Responsibility Payment
This report provides an update on the progress of the mandatory weekly kerbside food waste collection service rollout. The report asks Council to approve an additional revenue budget allocation for service provision within the current financial year. The report also asks Council to accept the additional £953,377.03 Extended Producer Responsibility (pEPR) payment for the financial year 2025/26.
This report has been recommended by Cabinet.
Minutes:
Members considered an update on the progress of the mandatory weekly kerbside food waste collection service rollout. The report asked Council to approve an additional revenue budget allocation for service provision within the current financial year. The report also asked Council to accept the additional £953,377.03 Extended Producer Responsibility (pEPR) payment for the financial year 2025/2026.
Cabinet had recommended this report to Full Council at their meeting held on 9 September 2025.
Full Council were asked to accept a significant increase in funding provided by the Department for Environment, Food and Rural Affairs (DEFRA) in order to build resilience, maximise the service and improve efficiency within the Waste service. Also requested was the movement of funds to smaller budgets to deliver these services.
Environment Overview and Scrutiny Committee were likely to further scrutinise the Food Waste service at their meeting scheduled for 23 September 2025.
A few points were highlighted by members:
- In view of the costings of the food waste service it should be optional for Councils. Some Councils would not be able to carry out this service without passing the cost onto their ratepayers.
- The previous trial collection of food waste in South Kesteven was a success. However in addition to households, supermarkets had a role to play in reducing food waste.
Questions raised by members were answered by the Cabinet Member for Environment and Waste:
- The full estimated cost to the Council of the scheme was being formulated and would be informed by areas such as fuel and wages. Councillors and residents would receive full insight and feedback as costs were generated.
- With Local Government Reorganisation (LGR) looming there was no ability for the waste collection authority to determine how waste was disposed of.
- It was disappointing that SKDC had not received full capital funding from DEFRA. DEFRA had used an incorrect figure for the total amount of households within South Kesteven. SKDC had written to DEFRA to inform them of this error, but to date there had been no response on this issue. SKDC would continue to chase a response.
- Composting was fully supported to complement the food waste collection.
- General Fund reserves were not being used to support this scheme. In the medium-term funds would be used from the pEPR payment. A further government grant ringfenced for the Waste service was used to make up the difference in capital costs, so no ratepayer funds were being used to make up the balance.
- No maggots were envisaged in the food caddies, which would be collected on a weekly basis.
- The food caddies were two different sizes; the smaller caddy was for indoor use whereas the larger caddy was due to be placed outside properties. Alternatives would be explored for other properties such as small terraces and Houses of Mulitple Occupancy (HMO) in due course.
- Introduction of a new way of separating and disposing of food waste would reduce carbon emissions associated with the current disposal route, as well as improving the recycling and reuse opportunities of other materials in the waste stream. Nevertheless, the operation of an additional 12 vehicles had the potential to increase fuel consumption overall for the fleet and therefore carbon emissions associated with their operation.
- Food waste would travel from the anaerobic digester at North Hykeham to facilities at Hemswell Cliff (Lincolnshire) and March (Cambridgeshire).
- SKDC was working with the Waste and Resources Action Programme (WRAP) to reduce waste food.
- DEFRA used a formula to calculate the amount of funding afforded to council areas. Rurality should be one aspect of the formula used as collection routes across rural areas were likely to use more fuel than smaller, urban areas.
- No oil would be added to the incinerator at North Hykeham to dispose of food waste for the short-term as the calorific content of waste at North Hykeham was sufficient. However, this issue could be explored further once the scheme was implemented.
Having previously been moved and seconded, and following a vote it was AGREED:
DECISION
That Full Council:
- Approve the formation of a revenue budget of £542,195 for the 2025/26 financial year to facilitate the rollout of the weekly food waste collection service.
- Approve the use of £400,125.45 from the allocated revenue transitional funding and an additional £142,069.55 from the Waste Service Reserve to create the revenue budget.
- Approve an increase to the vehicle replacement capital budget of £171,850 from the Waste Service Reserve to contribute towards funding the food waste collection vehicles and caddies.
Accept the additional pEPR payment of £935,377.03 for the financial year 2025/26 and to allocate this funding to the established Waste Services Reserve.
Supporting documents: