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

Education Navigator - Integrated Front Door

Cheshire East Council
£43,149 - £49,658 per annum
Are you passionate about making a positive difference to the lives of children, young people and families? Macclesfield, Cheshire
Recuriter: Cheshire East Council

Executive Director of Finance and Assets (Section 151 Officer)

West Surrey Council
£161,239–£177,363
You will also lead a more strategic approach to West Surrey’s assets, income and commercial activity. West Surrey
Recuriter: West Surrey Council

Technical & Validation Officer

Ashfield District Council
£29,542 - £32,046 per annum
We have an opportunity available for a Technical & Validation Officer Kirkby-in-Ashfield, Nottingham
Recuriter: Ashfield District Council

Environmental Services Operative (Driver)

Ashfield District Council
£27,274 - £29,071 per annum
Where applicable the skills, qualifications and memberships required for this job have also been included. Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council

Environment Area Supervisor

Ashfield District Council
£33,119 - £35,570 per annum
We are seeking an experienced, forward-thinking and highly motivated operational team leader Sutton-In-Ashfield, Nottinghamshire
Recuriter: Ashfield District Council
Linkedin Banner