Indeed, Sheffield’s proposal to retender the service with a view to eventually bringing it in-house is an exercise being repeated up and down the land as authorities look to ensure budgets are trim in 2017/18 and beyond.
The fact is that many PFI and PPP deals signed 10 to 15 years ago are no longer as attractive to councils as they once were, having endured a financial crash, reduced credits and huge cuts in the wake of government austerity.
In September, Cambridgeshire county council revealed it was reviewing its 27-year deal with Amey, and just last month Greater Manchester Waste Disposal Authority admitted it was ‘not satisfied’ with the terms of its 25-year contract with Viridor Laing.
While the actions of these authorities could embolden other councils to examine their own PFI arrangements, all is not lost for private sector businesses.
Many councils still consider insourcing of waste services too risky in the current economic climate and will continue to seek contracts which offer a degree of security. While the share of income from recyclables and EfW gate fees may not always be ideal, councils may well continue to rely on the technical expertise offered by waste companies to achieve best value.
But whatever the outcome of Sheffield’s vote, one thing is clear: the future of fixed multi-billion pound waste management contracts is under threat.
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