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

Customer Support Assistant - Tendring District Council

Essex County Council
Up to £13.6900 per hour
Customer Support Assistant - Tendring District Council Clacton-on-Sea, Essex Full-Time, Temporary Up to 6-Months Contract £13.69 PAYE / £17.56 Umbrell England, Essex
Recuriter: Essex County Council

Financial Assessment Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£31,515 - £47,067
Financial Assessment Officer
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Educational Psychologist

North Yorkshire Council
£47,688 up to £57,954 per annum pro rata, plus relocation support up to £8,000
As an Educational Psychologist you will join our central Educational Psychology team Selby, North Yorkshire
Recuriter: North Yorkshire Council

Specialist Senior Educational Psychologist (Early Intervention)

North Yorkshire Council
£57,954 to £65,432 per annum
We have dedicated service development time and CPD aligned with our vision of practice. Harrogate, North Yorkshire
Recuriter: North Yorkshire Council

Residential Worker

Essex County Council
£26284.00 - £33256.00 per annum + + 26 Days Leave & Local Gov Pension
Residential WorkerPermanent, Full Time£28,914 to £36,581 per annum (includes allowance)Location
Recuriter: Essex County Council
Linkedin Banner