Nullam Method Genesis · LATCo formation
How to set up a local authority trading company — properly, first time
A six-stage, gated toolkit that takes your council from “should we set up a company?” to day one — business case, Teckal, governance, TUPE and pensions — with a gate report you can attach to a cabinet paper.
6 stages · 6 gates · 68 evidence items · built from senior and advisory roles across multiple council companies
Why council companies struggle — and why it starts on day one
The problems that end up in audit reports and scrutiny reviews are rarely new. Most were built in when the company was set up.
An optimistic business case
Income forecasts built on hope, with no test against how comparable companies actually performed.
A company as the default
No honest options appraisal, so in-house reform or a shared service was never really tested.
An unclear shareholder role
Reserved matters nobody wrote down, informal instruction and a board that rubber-stamps.
Conflicted directors
Councillor and officer directors without a conflicts protocol or training on their duties.
Pensions discovered late
LGPS admission, contribution rates and cessation costs left out of the model until year three.
No exit route
No triggers or process for winding down, so withdrawal becomes a crisis instead of a decision.
The six stages of setting up a council company
Case for change
Is a company the right answer at all? Options appraisal, optimism bias, political resilience and the honest outcome that it might be no.
Gate 1: decision to develop an outline business case
Legal powers & procurement
Trading powers, the right company form, the Teckal exemption under the Procurement Act 2023, subsidy control and group structure.
Gate 2: legal basis confirmed
Financial case & model
A five-year model with set-up costs, transfer pricing, VAT, pensions, funding and the council's total exposure — stress-tested.
Gate 3: financial case approved
Governance design
Articles, shareholder agreement, reserved matters, board composition, director appointments and a conflicts protocol.
Gate 4: governance framework approved
People, TUPE & pensions
Staff transfer, union consultation, pay and pension parity, LGPS admission and the culture of the new company.
Gate 5: workforce transfer ready
Mobilisation & exit
Service agreement, incorporation, registrations, systems, KPIs and risk — with an exit strategy written in from the start.
Gate 6: day-one readiness
What’s included in the toolkit
68 evidence items
across six stages, each cross-referenced to the full Nullam Method.
Gate sign-off
recording who approved each gate, when, and the cabinet or committee reference.
A gate readiness report
ready to print or attach to a member report.
An evidence library
linking options appraisals, legal advice and models to the items they prove.
Runs in your browser
with nothing to install and your data kept on your own device. Back it up to OneDrive or SharePoint.
12-month licence
covering your whole formation project.
Sometimes the right answer is not to set up a company
Genesis is not built to sell you a company. Stage 1 tests every alternative — in-house reform, a shared service, a joint venture, outsourcing — and treats “don’t form one” as a good outcome. If the case survives that test, the next five stages make sure the company is set up to last.
Who Genesis is for
S151 Officers
asked to confirm the financial case and the council's exposure.
Monitoring Officers
confirming powers, governance and conflicts.
Chief executives and strategic directors
leading the business case.
Programme leads
who need one structured plan from options appraisal to go-live.
Facing local government reorganisation?
With new unitary councils due to take over on 1 April 2028, shadow and successor authorities are deciding whether to merge services into a company, split them, or inherit a company they didn’t create. Genesis gives you a defensible route for any new company — and the full Nullam Method reviews the ones you inherit.
Pricing
One price for the complete toolkit, set below most councils’ single-quote threshold so it can be bought without a tender. Support is there if you want it.
The toolkit
Nullam Method Genesis
£2,475 + VAT
- ✓ All six stages and 68 evidence items
- ✓ Gate sign-off and readiness report
- ✓ Evidence library and backups
- ✓ 12-month licence
Support from Nullam Financial
- Genesis Gate ReviewTwo facilitated workshops and a written gate readiness review.£7,950
- Business case & financial modelFive Case business case, options appraisal and five-year model, fixed fee.£18,500
- Set-up partnerHands-on finance and programme support through to go-live.£950 / day
All prices exclude VAT. Genesis works alongside your legal advisers; it does not replace legal advice or draft legal documents.
Talk to Ian
Built from the inside of council companies
Ian Skates has worked with multiple local authority trading companies, both in senior positions and as an adviser, dealing first-hand with the business cases, transfer pricing, pensions and governance that Genesis covers. Genesis condenses the 634-item Nullam Method into the 68 questions that matter before a company exists.
Frequently asked questions
What is a local authority trading company?
A company owned by one or more councils, often called a LATCo, used to deliver services or trade commercially. Where a council trades for profit, the Local Government Act 2003 requires it to do so through a company.
How long does it take to set up a council company?
Usually many months from options appraisal to go-live, driven by the business case, cabinet approvals, staff consultation and pension admission. Genesis shows what has to happen at each stage so the timetable is realistic.
Does Genesis cover the Teckal exemption under the Procurement Act 2023?
Yes. Stage 2 covers the control test, the 80% activity test and how external trading growth affects it over the business plan period.
Do we still need lawyers?
Yes. Genesis structures the decisions and the evidence; your legal advisers draft the articles, shareholder agreement and service agreement. Councils that arrive with the decisions made spend less on advice.
Can we use it if we are going through reorganisation?
Yes. Stage 1 includes testing the proposal against reorganisation and the views of the successor authority.
Where is our data kept?
On your own device, in your browser. Nothing is sent to Nullam. You can export a backup file and store it on your council's systems.
Set it up right first time
Start with Stage 1 this week. If the case for a company stands up, you’ll have the evidence to prove it.