Analysis of Business Case for Local Authority Trading Company

The London Borough of Barnet plans to transfer Adult Services to a Local Authority Trading Company (LATC) together with Barnet Homes, the Arms Length Management Organisation managing the council housing stock. About 160 Adult Services staff will transfer to the LATC. The LATC model is intended to commercialise Barnet’s provision of learning disability and physical and sensory impairment services for adults. The business case refers to ‘profits’ and the Council using its power as shareholder to demand annual ‘dividends’. Rather than subsidising important social and housing services, these services will in future subsidise other Council services! (May 2011).