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

Senior Client Affairs Officer - until 31st March 2027

The Royal Borough of Kensington & Chelsea Council
Negotiable
Lead the vital work of managing client finances with care, accuracy and integrity As Senior Client Affairs Officer, you'll play a key leadership role in managing and protecting the finances of vulnerable residents who cannot manage their own money. England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Head of Finance and HR Systems

The Royal Borough of Kensington & Chelsea Council
Negotiable
Lead the vital systems that power our council and enable our teams to deliver reliable, efficient services for our community As our Head of Finance and HR ICT Systems, you'll lead the digital backbone of Kensington and Chelsea, with strategic ownership England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Multi Trade Carpenter

The Royal Borough of Kensington & Chelsea Council
Negotiable
Carry out high-quality repairs that keep our homes safe and well maintained England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Visual Impairment Rehabilitation Officer

The Royal Borough of Kensington & Chelsea Council
Negotiable
Support residents with sensory loss to rebuild confidence, develop practical skills and live independently As a Visual Impairment Rehabilitation Officer, you'll support residents with sensory impairments to build practical skills, confidence, and indep England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Visual Impairment Rehabilitation Officer

The Royal Borough of Kensington & Chelsea Council
Negotiable
Support residents with sensory loss to rebuild confidence, develop practical skills and live independently As a Visual Impairment Rehabilitation Officer, you'll support residents with sensory impairments to build practical skills, confidence, and indep England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council
Linkedin Banner