Somerset Council, UK Faces Tough Financial Decision with Waste Firm That Deems Contract is “No Longer Sustainable”

Next week, the Somerset Council in England will meet to discuss whether it will be paying an extra £47M over the next six years to its waste contractor.

This decision will follow Suez, who deals with the area waste and recycling collections, said that the agreed upon contract is “no longer sustainable” and the cost of delivering services for the area has far exceeded expectations. Suez is seeking an increase in payments to keep up with the required workload.

Suez has mentioned that it would consider walking away from the current contract and taking on a hefty financial penalty for breaking the contract early. Negotiations could lead to Somerset Council paying an extra £3M this year and $47M over the next six years.

The timing couldn’t be worse for Somerset Council as it has recently declared a financial emergency.

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