A South London council may not renew its bin collecting service as extending the current contract could leave it “open to legal challenge”.
Kingston Council said its officers are recommending the authority should not renew its contract with Veolia when it ends in 2025 following a review.
Kingston Council told the Local Democracy Reporting Service there had been big changes to national policy, the availability of HGV drivers and the global market for recycling since the contract with Veolia was signed in 2017.
The authority said extending the contract would require big changes to its terms to address these challenges.
The council’s place committee will decide whether to extend the contract on November 8 following the officers’ recommendation.
The authority said it will soon ask residents for feedback on the service before deciding on the final requirements for the new contract from 2025.
Kingston’s contract with Veolia is held jointly with neighbouring boroughs Merton, Croydon and Sutton as part of the South London Waste Partnership.
The contract includes street cleaning, waste and recycling services.
Merton Council has already confirmed it is exiting the contract, with Sutton and Croydon expected to make decisions soon.
A spokesperson from Kingston Council said: “Since the contract was signed five years ago, there have been significant changes to external factors such as the global market for recycling material, national policy changes and availability of HGV drivers.
“To address these challenges, an extension would require significant changes to the terms of the contract and extending the contract could leave the council open to legal challenge.
“The recommendation to the committee will be that the contract is recommissioned.
“The innovative joint contract with Veolia has delivered substantial cost savings as well as increased recycling rates – with Kingston rated third in London in 20/21.
"Recommissioning the service will allow Kingston to build on this progress to review requirements and develop local priorities to respond to the borough’s changing needs.
“The decision taken will be based on our ongoing commitment to provide the best value for Kingston’s residents as well as providing sustainable solutions for waste to support efforts to protect the environment.
"We will shortly be asking local residents for their feedback on the service before deciding on final requirements for the new contract from 2025.”
In a statement, Veolia said it had made “significant achievements” since 2017 across all four SLWP boroughs.
The company said it is close to the top of the league table for being the best recycler in the capital and for making huge digital innovations.
The Veolia spokesperson said: “Our essential waste collection and street cleaning services have been delivered through Covid-19 lockdowns and extreme weather conditions and we thank our frontline staff for their ongoing hard work and commitment.
“Since the existing contract began in 2017, service requirements and the wider market have evolved substantially.
"We look forward to reviewing new contract specifications when these are available and will respond accordingly in the new bidding process.
"In the meantime, we are committed to continuing to deliver the best quality services to residents until the completion of the contract in 2025.”
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