Somerset councillors will next week consider negotiating extra payments to its waste contractor in a bid to "protect the public purse and service continuity".

Somerset Council said its waste contractor, SUEZ, has disclosed figures showing significant annual losses on its £24 million-per-year contract.

SC says the firm has made a "number of contractual claims" seeking changes to payments and warns while these are in dispute, without an increase in payments there is a risk that SUEZ may exit the contract, to limit its losses over the contract's remaining six years.

A report to the council's executive committee meeting on 8 May recommends giving the council's chief executive power to negotiate with SUEZ to broker a deal which would stop SUEZ exiting the contract.

This option would then be brought back to a future executive meeting to weigh up against all other options.

These include bringing the service in-house or finding a new contractor – both of which the council says are also likely to come with additional costs and the "risk of disruption to collections".

SUEZ secured the Somerset contract in April 2020.

Cllrr Dixie Darch, lead member for the environment and climate change, said: "This is a deeply frustrating situation but it is clear that we cannot sit back and do nothing.

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"All the options come with extra cost and if an acceptable agreement can't be reached with SUEZ there is also the risk of widespread disruption to a crucial frontline service which will affect everyone.

"It's a situation we have to deal with and our focus must be on finding the best way forward that minimises the cost while also protecting a much valued service."

The current contract with SUEZ is due to end in 2030, with the option for a ten-year extension.

It covers all kerbside collections of refuse, recycling, and garden waste, delivery of waste containers as well as operation of waste transfer stations which move waste on for recycling.