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/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Senior Commissioning Manager

Gloucestershire County Council
£55,717 - £59,753 per annum
This is a senior, hands-on leadership role combining strategic oversight with effective day-to-day management of the Contracts Team. Gloucester, Gloucestershire
Recuriter: Gloucestershire County Council

Commissioning Officer

Gloucestershire County Council
£38,510 - £42,123 per annum
You will have a strong practical knowledge of the practices required to operate safe and compliant adult social care services. Gloucestershire
Recuriter: Gloucestershire County Council

Assistant Director of Technology and Innovation

Hull City Council
£115k,, expected to work flexibly with some opportunities for homeworking
We are looking for a strategic leader who can harness the power of technology, data, artificial intelligence and innovation Kingston upon Hull, East Riding of Yorkshire
Recuriter: Hull City Council

Commissioning Officer

Gloucestershire County Council
£38,510 - £42,123 per annum
You will have strong analytical and organisational skills, with experience of using large, complex datasets Gloucestershire
Recuriter: Gloucestershire County Council
Linkedin Banner