Taking Birmingham private
It has been enthralling in a ghoulish way to watch Birmingham descend into a chaos of rat-riddled rubbish. Two questions spring to mind. Why does the city hire bin-men to collect its garbage, and why doesn’t it hire outsiders to do it?
The case for having Birmingham’s bin collection performed by private contractors instead of being delivered in-house by the city council revolves around arguments concerning efficiency, cost savings, service quality, and flexibility.
Private companies operate more efficiently, potentially reducing costs through economies of scale, leaner operations, and less bureaucracy. Councils often face higher pension liabilities and unionised wage structures. Private firms have more flexibility in setting pay and employment terms.
Private contractors can be held to strict performance standards with penalties for poor service, encouraging better service delivery. They may also be quicker to adopt new technologies and methods such as route optimisation and digitised reporting of missed collections.
Contracts can be adjusted or retendered based on service needs, giving councils flexibility without long-term structural commitments. The council sets the desired outcomes, and the contractor focuses on delivery, allowing the council to concentrate on oversight.
With private contractors there is less exposure to strikes. Birmingham has experienced industrial action in the past by in-house waste workers. Using private contractors reduces such risks, since terms are negotiated separately. Outsourcing reduces the direct political fallout from service disruptions. And councils can lock in predictable costs through long-term contracts, helping with budgeting and financial planning.
Manchester City Council outsources its waste collection services to Biffa, a major waste management company. This arrangement has been in place for several years.
Service quality is generally consistent. Biffa uses modern fleet vehicles with real-time tracking, which allows for efficient routing and reporting. The contract helps the council manage costs predictably, with less exposure to unexpected expenses. It includes key performance indicators (KPIs) and penalties for missed collections or failures.
Strong contract management is a key factor, with the council needing to monitor and enforce service levels closely, something more difficult to achieve under a unionized in-house service provision. Modernization and tech integration by the private firm has improved both transparency and responsiveness.
Birmingham City Council should be exploring a new approach to waste collection by partnering with private sector experts, a move that would improve reliability, reduce service disruptions, and deliver better value for money. Using performance-based contracts and modern technology, they could offer a more consistent, efficient, and environmentally-friendly service, while ensuring contractors were fully accountable to residents.
It’s about results, not ideology. It could give Birmingham the clean, dependable service it deserves. And it would get rid of the rats and the rubbish.
Madsen Pirie