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

Executive Director of Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities. Essex
Recuriter: Essex County Council

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Property Lawyer

Redbridge London Borough Council
£52,194 - £55,323 per annum
An excellent opportunity has arisen within the London Borough of Redbridge for an experienced, skilled and dynamic Property Lawyer. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Adult Litigation Lawyer

Redbridge London Borough Council
£52,194 - £55,323 per annum
An excellent opportunity has arisen within the London Borough of Redbridge for an Adults Litigation Lawyer Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Social Care Lawyers x2

Redbridge London Borough Council
£52,194 - £55,323 per annum
An excellent opportunity has arisen within the London Borough of Redbridge for a Social Care Lawyer Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council
Linkedin Banner