Peterborough City Council is considering ending its waste and recycling contract with Amey 17 years early in response to ‘unprecedented challenges within local authority markets’ – the second authority looking at early termination of a long-term contract in the last couple of weeks.

Cabinet members will decide next Monday (6 February) whether to consult on a proposal to end the council’s waste and recycling contract with Amey by mutual consent.

The 23-year contract was signed with Enterprise Managed Services in 2011 and transferred to Amey in 2013 when it bought the company. It covers household waste and recycling collections, street cleaning, property design and maintenance, grounds maintenance and a range of other services.

However, the cabinet is being asked to end the partnership and consider alternative options to provide future waste services since ‘unprecedented challenges’ to local authority markets are making the current contract impossible to continue.

Councillor Gavin Elsey, Peterborough City Council’s Cabinet Member for Waste and Street Scene, said: “The financial position we find ourselves in is unprecedented, and we are therefore constantly looking at how we provide services to ensure we are achieving best value for money and offering the best possible services for our residents.

“We want to improve the recycling rates in the city, which can be a major source of money. We also believe we can make more money from the building services offered, and other commercial opportunities available.

“I would like to thank Amey for its commitment to providing services for the residents of Peterborough during the past five years. However, it has been clear for some time that our contract is no longer meeting either of our needs and is no longer compatible with the tough financial landscape we are operating in.”

This is the second long-term council waste contract that has been deemed unsustainable in the last few weeks. Just last week, Sheffield City Council’s Cabinet approved plans to terminate the city’s waste contract with Veolia 19 years early, stating that the current deal could not continue given ongoing budget cuts and claiming that reopening procurement would enable to council to be more flexible with future services.

Peterborough City Council predicts that alternative services for waste and recycling could save the council £100,000 a year, and it is not anticipated that ending the contract early would incur any costs, as it would be by mutual consent.

Joint venture partnership considered

The report to be presented to the cabinet next week suggests that a joint venture partnership with another organisation would be the best way of delivering services in the future, allowing the council more control over how services are provided and ensuring ‘that a percentage of any income generated by services is returned to the council’.

Should the cabinet agree to put the matter to consultation, residents will be able to give their views until 23 February, with a full council meeting considering the proposal on Wednesday, 8 March.

The contract with Amey will continue until a new service provider is in place.

Elsey continued: “If this proposal is approved, we will look to provide the city’s waste services in a different way, which will most likely involve setting up a joint venture partnership with another organisation.

“Regardless of the decision, residents should be assured that waste services will continue to run smoothly. We are also aware that this will be an uncertain time for Amey’s staff, and we are committed to consulting with them on any proposed changes if cabinet and council approves the termination of the existing contract.”