Shropshire rubbish disposal costs up by £2m

The cost of disposing of Shropshire's rubbish rose by more than £2 million in the last financial year, it has been revealed.

Shropshire Council's waste collection and disposal costs went up from £23.678 million in 2009/10 to £25.883m in 2010/11 – a rise of more than £2.2m, according to its statement of accounts. Officials say the cost for this financial year should stay within its £25.549m budget.

However, they admitted further rises were likely in the future 'as some of the contract cost was linked to inflation'.

The responsibility for county waste disposal lies with Veolia which signed a 27-year Private Finance Initaitive contract in 2007.

Larry Wolfe, council waste services manager, said: "The waste budget is revised each year to adjust for pay and prices, population and tonnage growth and any expected savings. The figures reported in the accounts include both the waste management contract and waste management expenditure outside of the PFI contract.

"The historic increase in costs is due to a combination of pay and prices inflation, landfill costs increases – mostly landfill tax, growth for non-achievable landfill allowance trading scheme income and is offset by savings implemented for the service."

Robin Hooper, former chief executive of Shrewsbury and Atcham Borough Council, said: "If inflation continues to be high – and frankly it is in government interests in part for it to remain high as it devalues the national debt – then any contract linked to inflation means more money has to be paid.

"The answer is to carry out a fundamental professional and competent appraisal of the contract, not just for waste, but for the others the council has as well and to renegotiate . . ."