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

Minerals Monitoring and Compliance Officer

Durham County Council
Grade 9 £35,412 to £39,152 per annum
We are looking for an experienced individual who has the knowledge of service planning issues relating to development management and monitoring / comp Durham
Recuriter: Durham County Council

Care Support

Durham County Council
Grade 4 £25,583 - £26,824
We have a permanent post available within the Pathways Service - which provides day services Monday to Friday to adults with complex needs. We have 1 Peterlee
Recuriter: Durham County Council

Classroom Teacher

Durham County Council
£37,101 - £45, 352
Classroom Teacher (across KS1 and LKS2) Required to start 1st September 2026   The children, staff and governors of Sedgefield Primary are looking to Sedgefield
Recuriter: Durham County Council

Class Teacher- EYFS Lead

Durham County Council
£45, 352 - £51,048
The children, staff and governors of Sedgefield Primary are looking to appoint an enthusiastic and hard-working Reception Teacher to join our strong t Sedgefield
Recuriter: Durham County Council

Teaching Assistant

Durham County Council
£26,403 - £28,598
At Howletch Lane we are commited to providing a nurturing and inclusive environment where every child can thrive academically, socially and emotionall Peterlee
Recuriter: Durham County Council
Linkedin Banner