Ellie Ames 08 July 2024

Council to consider paying £47m extra for waste service

Council to consider paying £47m extra for waste service image
Image: Peter Titmuss / Shutterstock.com

Somerset Council will consider paying an extra £47m over six years for waste services after its contractor disclosed it was making significant losses in the area.

Suez warned the local authority in May that it would consider exiting the contract, despite the financial penalty it would face, unless payments were increased.

Councillors will now consider whether to accept the settlement with Suez, bring waste services in-house, or find a new contractor. All options cost ‘substantially more’ than the council pays now.

Officers have recommended agreeing to pay Suez more for the rest of the contract, which runs until 2030.

The council said independent analysis had shown it was the cheapest option.

It would pay Suez £3m extra this year, with the additional sum increasing to an annual average of £7.8m over the contract, which is currently worth £24m a year.

Somerset said Suez would still be making a substantial loss.

The council’s lead member for environment and climate change, Dixie Darch, admitted that the extra payments were ‘very much the “least worst” option’.

‘These are not options we expected or want to consider, but we have to make sure this vital service continues,’ she added.

SIGN UP
For your free daily news bulletin
Highways jobs

Accounting Officer

Essex County Council
Up to £25081.00 per annum + + 26 Days Leave & Local Gov Pension
Accounting OfficerPermanent, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Cook

North Yorkshire Council
£13.47 to £14.13 per hour
We have an opportunity to join our award-winning Facilities Management catering team Settle, North Yorkshire
Recuriter: North Yorkshire Council

HR Business Partner

North Yorkshire Council
£47,181 - £51,356 pro rata per annum
Health and Social Care Services have the privilege and responsibility of supporting people and their families when they need it the most. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Building Surveyor (Building Control)

Kirklees Metropolitan Council
£38,220 to £44,075
Join our energetic and collaborative Building Control team, where your ideas will shine, and your voice will be heard. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Occupational Health Technician

North East Lincolnshire Council
NJC15 £30,024
Could you play a vital role in protecting and promoting the wellbeing of an entire workforce? North East Lincolnshire
Recuriter: North East Lincolnshire Council
Linkedin Banner