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

School Crossing Patrol

North Yorkshire Council
£12.85- £13.47 per hour
Do you have half an hour to spare in the morning or afternoon? Pickering, North Yorkshire
Recuriter: North Yorkshire Council

School Crossing Patrol

North Yorkshire Council
£12.85- £13.47 per hour
Do you have half an hour to spare in the morning or afternoon? Stokesley Business Park, Middlesbrough
Recuriter: North Yorkshire Council

Assistant Director – Property

Borough Council of King's Lynn and West Norfolk
up to £89,371
Shape the future of our borough. Norfolk
Recuriter: Borough Council of King's Lynn and West Norfolk

Chief Operating Officer

Borough Council of King's Lynn and West Norfolk
up to £126,615
Shape the future of our borough. Norfolk
Recuriter: Borough Council of King's Lynn and West Norfolk

Digital Forensic Analyst

North Yorkshire Council
£27,254 to £42,839
Do you work in the field of digital forensics or are you looking to start a career in the field? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner