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 Highways Inspection Officer

The Royal Borough of Windsor & Maidenhead
£39,526 - £43,613 per annum.
We have an exciting opportunity for a Senior Highways Inspection Officer to join us! Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Co-ordination Support Officer

Wakefield Council
Grade 5 SCP 8 £26,824 - SCP 11 £28,142
Do you have excellent business administration skills with an interest in working in Adults Social Care? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Engineering Team Manager (Transportation)

Calderdale Metropolitan Borough Council
Special A Grade, SCP 42-45, £53,460 - £56,732 per annum
Lead the way. Shape Calderdale’s transport future. Calderdale, West Yorkshire
Recuriter: Calderdale Metropolitan Borough Council

Social Worker Care Co-ordinator

Durham County Council
£35,412 - £39,152 (pre-progression) / £40,777 - £45,091 (post-progression) pro rata pa
We are seeking a dynamic and motivated Social Worker who places young people at the centre of their practice. This is an exciting opportunity to make Spennymoor
Recuriter: Durham County Council

Accommodation Officer

Durham County Council
Grade 7 £30,024 - £33,699
Are you passionate about preventing homelessness and making a real difference in people’s lives? As an Accommodation Officer in our Independent Livin Seaham
Recuriter: Durham County Council
Linkedin Banner