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

Executive Director of Transport

Cambridgeshire & Peterborough Combined Authority
£128,216 – £156,241
Getting Cambridgeshire and Peterborough Moving Cambridgeshire
Recuriter: Cambridgeshire & Peterborough Combined Authority

Assistant Director – Children and Families

Sheffield City Council
£80,995 - £86,757
Our promise to Sheffield’s children and young people is that Sheffield will be a place where they belong, Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Assistant Director of City Transport

Sheffield City Council
£ to match our ambition
You’ll keep abreast of emerging approaches and best practice Sheffield, South Yorkshire
Recuriter: Sheffield City Council

Director Of Growth

Royal Borough of Greenwich
up to £185,000
The Royal Borough of Greenwich is synonymous with iconic London landmarks, culture and outstanding service delivery. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Strategic Director of Resources

London Borough of Waltham Forest
CIRCA £180,000
We are now in a strong position to move forward with confidence. Waltham Forest, London (Greater)
Recuriter: London Borough of Waltham Forest
Linkedin Banner