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Birmingham City Council is set to create a private company to deliver its regeneration services and those of other public and private sector organisations. Plans have been drawn up by council members and will be considered by cabinet members on Monday.

A report outlining the plan – which the council says is designed to “improve service efficiency and generate income for the council” – will be presented to cabinet members to scrutinise.

Under the proposal, the newly established company would initially look to provide some services currently delivered by the council’s building consultancy and urban design teams. The authority said that “consideration is also being given to other elements of work carried out within the area of planning and regeneration”.

Under initial plans, an overarching parent company would be created, with each individual service then delivered through Special Purpose Vehicles (SPVs).

Full consultation on all aspects of the plan will be carried out with staff and trade unions, said the council.

Councillor Randal Brew, cabinet member for finance, said: “The plan that has been put together offers us a great opportunity to review operations and modernise and transform the services we offer as a city council.

“It would contribute to the financial challenges the council faces by reducing overheads, bringing into play the benefits of economies of scale and generally being a more efficient way of doing things.

“Longer-term, it would also be offering us the foundations of a lucrative income stream by expanding our customer base, meaning there is a vast amount of potential in this and it is right that we consider doing it.”