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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Children & Family Worker

Wakefield Council
G7 SCP 19 £32,061 to SCP 23 £34,434
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Social Worker - Disabled Children's Team

North Yorkshire Council
£38,220 - £42,839
North Yorkshire Council’s Children’s Services have a national reputation for excellence Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Early Help Consultant

North Yorkshire Council
£42,839 - £47,181 per annum, pro rata
Are you ready to influence change and improve outcomes for children and their families? Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Educational Psychologist

North Yorkshire Council
£49,215 to £59,809 per annum pro rata
Are you an EP who is interested in making real change for children, young people and families at individual and systems level? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner