Croydon Council is creating a private company to run their adult and housing services.

There are plans to form a local authority trading company (LATC) to trade in services delivered by the council’s department for adult services and housing.

The creation of a private company represents a significant shift in the way the council operates and allows it to trade in open market. The council would be able to offer their adult and housing services to other local authorities.

The proposals are due to go before cabinet on July 12.

Day services and a tailored employment facility for people with learning disabilities, along with an equipment provider for vulnerable people with mobility problems could be included in the company.

Councils have the power to create LATC’s under the Local Government Act 2003.

Croydon Council would own 100 per cent of the shares in any new company Profits would be put back into the council’s budgets or re-invested in the development of services provided by the company.

Councillor Margaret Mead, the council’s cabinet member for adult services said: “The same services will be delivered by the same people in the same places. The main difference is that for the first time more people will be able to access them.

“We could also potentially market the services to other local authorities, making profits which can be put back into other services, which at the moment we are prevented from doing. The LATC will open new opportunities.”