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

Chief Executive

Ebbsfleet Development Corporation
up to £165,000
Ebbsfleet is one of the UK’s most ambitious regeneration projects, a 21st-century Garden City Ebbsfleet, Kent
Recuriter: Ebbsfleet Development Corporation

Planning Support Officer

The Royal Borough of Kensington & Chelsea Council
Up to £34359 per annum
Keep our planning service running smoothly, supporting the team that shapes the future of our borough.As a Planning Support Officer, you'll play a vit England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Change Communications Lead

Sandwell Metropolitan Borough Council
£42,839-£48,226
Having come out of government intervention after two years in 2024 Sandwell, West Midlands
Recuriter: Sandwell Metropolitan Borough Council

Finance Officer - Debt Collection

Essex County Council
£25081.00 - £27653.00 per annum + + 26 Days Leave & Local Gov Pension
Finance Officer - Debt CollectionPermanent, Full Time£25,081 to £27,653 per annumLocation
Recuriter: Essex County Council

Highways Project Engineer

North Yorkshire Council
£31,537 to £42,839 per annum
We hybrid work with a mixture of working from home and from our offices, however your role will take you out and about Whitby, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner