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

Early Career Development Programme Manager

London Borough of Richmond upon Thames and London Borough of Wandsworth
£50,484 – £61,176 per annum
Early Career Development Programme Mana... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Digital Infrastructure Manager

Hyndburn Borough Council
£40,444 - £43,149 per annum
You will be an experienced ICT professional with strong technical expertise in networks, infrastructure and cyber security. Lancashire
Recuriter: Hyndburn Borough Council

Arboriculture & Conservation Officer

Hyndburn Borough Council
£39,481 – £41,177 per annum
You will have a qualification in arboriculture and 3 years’ experience working in arboriculture Lancashire
Recuriter: Hyndburn Borough Council

Planning Manager (Development Management)

Hyndburn Borough Council
£49,817 to £53,051 per annum
You should be a member of the RTPI with an excellent knowledge and experience of planning and development control. Lancashire
Recuriter: Hyndburn Borough Council

Senior Planning Officer/Principal Planning Officer (Career Grade)

Hyndburn Borough Council
£40,444– £43,149 progressing to £43,149- £46,579
This career-grade position offers an excellent opportunity for professional development and progression within a supportive and forward-thinking Lancashire
Recuriter: Hyndburn Borough Council
Linkedin Banner