LAWR

and disposal, along with partnership working and other measures to achieve economies of scale both on disposal and to improve sale of recyclates. Increased diversion and treatment of organic waste was also high on the list of changes made or planned, as well as seeking new markets for recyclates and short-term contracts for residual waste treatment e.g. RDF for export. The wider impact of the cuts is harder to pin down - 30% reported a drop in recycling rate, for example, but 22% reported an increase, and recyclate qual- ity was reported by the majority to be the same or getting better. Although not necessarily directly linked to austerity measures, 25% had seen increases in fly-tipping and 28% a rise in litter, which may be linked to the reductions in cleansing frequency. Around a quarter also reported increased use and abuse of HWRCs by residents and increased illegal trade waste. Those involved in supplying products and services to local authorities had also felt a knock on effect, with 68% indi- cating that they had seen some level of change as a result of austerity measures. Almost a quarter reported a decrease in sales and 25% an overall reduction in contract value. The most common actions requested by LAs from suppliers were service changes to deliver efficien- cies (38%), changes to hours of operation (37%) and support and advice on cost savings (30%). Looking at the bigger picture In the longer term, one of the most wor- rying findings is the impact of austerity on staff. This was highly evident in the survey responses, with 66% reporting some form of departmental restructuring, 68% saying vacant posts are not being filled, and 61% being subject to a pay freeze. In reality, these measures have multiple impacts – reduced staff morale, which was indicated by nearly two thirds of the respondents, increased workloads and skills shortages as people leave and are not replaced, and less access to profes- sional development opportunities such as training, membership of relevant bodies and external learning and networking opportunities. These in turn means that over time, waste teams may be less inclined and less able to innovate and may rely more on short-term, reactive cost-cutting meas- ures rather than developing a long-term and holistic strategy for service ration- alisation or innovation. Given that the majority of those surveyed believe that they will face further budget cuts for three to five more years, the resilience and expertise of those who will have to manage these services in future becomes a critical success factor. What is also of concern is that the majority of respondents felt they had either faced similar or greater cuts than other departments; a view that is not shared by the National Audit Office (NAO). In its report late last year (The impact of funding reduction of local authorities, Nov 2014), the NAO states that waste services have been largely protected up until now: "Environmental and regulatory services, which include statutory duties to collect and dispose of waste, have also seen lower spending reductions than other areas." The NAO report also talks of "increased uncertainty about how local authorities can manage further possible falls in income", and it appears likely that deeper and more difficult rationalisa- tion of waste collection and treatment services will be needed in the future. If this is the case, the efficiency measures and innovative approaches captured in the CIWM /Ricardo research will cease to be optional and yet even these may not be enough. 'A perfect storm' The fact is that local authorities, and to a large extent their contractors, are facing a perfect storm. Budgets are falling, costs are rising, recyclate prices are fluctuating, and the pressure on performance in terms of recycling quality and contamination is growing. The direct relationship between householders and local authorities is a further challenge; maintaining resident satisfaction levels, while at the same time rationalising services and keeping the momentum up on recycling is a bal- ancing act worthy of Houdini – especially when there is no money around for com- munications. For CIWM, this picture is worrying not just because of local authorities' role as frontline waste service providers, but also because they sit at the heart of our cur- rent collection infrastructure for recov- ered materials. Without them, any move towards greater resource efficiency and a more circular economy falls at the first hurdle. Put simply, the question is can the current system withstand the budget- ary challenges ahead while still meeting the needs of both resident and the wider resource agenda? To inform this critical debate, CIWM will now be exploring this question with its membership and more widely. If you would like to share any views, useful information or learning with the pro- ject team, please contact tracy.moffatt@ ciwm.co.uk. The CIWM and Ricardo-AEA report is available at www.ciwm.co.uk/ reports and research. March 2015 Local Authority Waste & Recycling 7 AUSTERITY REPORT frontline? " 68% of survey respondents say vacant posts are not being filled " This article was co-authored by Pat Jennings, CIWM's communications advisor. Steve Lee is chief executive of CIWM. Among councils who provide HWRCs, efforts to reduce costs have focused around reduced opening hours.

• Cover