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

Social Worker - Children in Care, West Essex

Essex County Council
Up to £0.0000 per annum
Social Worker - Children in Care, West EssexPermanent, Full Time£36,124 to £51,834 per annumLocation
Recuriter: Essex County Council

Reparation and Volunteer Development Officer

North Yorkshire Council
£38,220 - £42,839 per annum, pro rata
We are looking to recruit a Reparation and Volunteer Development Officer to join the Youth Justice Team Scarborough, North Yorkshire
Recuriter: North Yorkshire Council

Deputy Manager - Children's Homes Service

Durham County Council
Grade 11, £40,777 - £45,091 per annum. Pay award pending.
As a Deputy Manger you will work directly with children and young people, their families and carers, as well as other relevant professionals identifie Spennymoor
Recuriter: Durham County Council

Apprentice Financial Management

Durham County Council
£15,434 per annum (£8.00ph) NMW
Earn.  Learn.  Qualify.   Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, d Durham
Recuriter: Durham County Council

Apprentice Civil Engineer

Durham County Council
£15,434 per annum (NMW in first year of apprenticeship)
Earn.  Learn.  Qualify. Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, dev Durham
Recuriter: Durham County Council
Linkedin Banner