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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Service Manager for the Multi Agency Child Protection Team

Nottingham City Council
£58,602 - £62,109
You will play a pivotal role in leading and shaping child protection practice across Nottingham Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Head of Regulated Services

Nottingham City Council
£75,323 - £84,396
You will provide strategic leadership for our Residential Children’s Homes, our Fostering Services, and our, Permanence service Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Head of Children's & Education Services Transformation

Nottingham City Council
£75,323 - £84,396
You will play a critical leadership role in driving Nottingham's ambition to deliver outstanding services for children, young people and families. Nottingham, Nottinghamshire, Hybrid
Recuriter: Nottingham City Council

Assistant Head of Legal Services (Regeneration & Property)

Royal Borough of Greenwich
PO9 - £71,181 - £74,802
The role will involve legal advice and support to committees, members and senior officers, and taking any appropriate measures London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner