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

Principal Housing Lawyer - Epping Forest District Council

Essex County Council
Up to £48.50 per hour
Principal Housing Lawyer - Epping Forest District Council Epping, Essex£37.82 PAYE / £48.50 Umbrella Full-Time, Temporary 36 Hours per Week Closing Da England, Essex, Epping
Recuriter: Essex County Council

Part Time Mobile Library Supervisor (HGV Class 2 Driver)

Essex County Council
£25959.00 - £28621.00 per annum + Pro Rata
Part Time Mobile Library Supervisor (HGV Class 2 Driver)Fixed Term, Part Time£25,959 to £28,621 Per Annum, full time equivalentLocation
Recuriter: Essex County Council

Head of Practice Development (Adult Social Care)

City of York Council
City of York Council
Recuriter: City of York Council

Head of Service, Operations (Adult Social Care)

City of York Council
£60,662 to £68,265 plus reviewable market supplement up to £79,480 alongside an attractive benefits package and relocation support.
York is at an important point in the development of our Adult Social Care services. York, North Yorkshire
Recuriter: City of York Council

Pre-Construction Housing Delivery Team Manager

Essex County Council
£550.0000 - £600.0000 per day
Pre-Construction Housing Delivery Team Manager - Harlow District CouncilHarlow District CouncilTemporary, Full Time£550.00 - £600.00 per day/umbrellaL England, Essex, Harlow
Recuriter: Essex County Council
Linkedin Banner