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 Manager

North Yorkshire Council
£38,220 to 42,839 per annum
We operate a fleet of about 1200 vehicles across North Yorkshire. Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Assistant Director of Governance, People & Performance (Monitoring Officer)

Arun District Council
c.£95,000
Arun District Council is entering one of the most significant and exciting periods in its recent history Littlehampton, West Sussex
Recuriter: Arun District Council

Public Transport Technical Assistant

North Yorkshire Council
£27,254 - £29,064
Are you someone who is looking to develop skills within an operational service? Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Procurement & Contracts Officer - Epping Council

Essex County Council
Up to £21.0100 per hour
Procurement & Contracts Officer - Epping Forest District Council Epping, EssexFull-Time, Temporary - 37 Hours per Week 2-3 Month Contract £21.01 PAYE England, Essex
Recuriter: Essex County Council

Commercial and Operations Manager

Mansfield District Council
£12,098 - £13,756 per annum
This is a part-time opportunity, working alongside a part-time fellow manager of the same title. Mansfield, Nottinghamshire
Recuriter: Mansfield District Council
Linkedin Banner