North Somerset Council faces a “deeply depressing” £1 million overspend in its waste recycling budget due to unstable recycling markets and rising costs.
While councils typically generate income by selling materials collected from kerbside recycling and household waste centres, recent global economic pressures have severely reduced the value of these materials. Unlike black bin waste disposal, which incurs costs, recycling historically offsets some expenses — but this year the income has dropped sharply.
“We are collecting more recycling, but due to global market pressures, its value has plummeted,” explained Mickey Green, the council’s Director of Environment, Assets, and Travel, during a scrutiny panel meeting on November 6. Despite these challenges, recycling continues to contribute millions to the council’s waste services, just less so than in previous years.
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Plastic prices have been particularly hit, dropping from £168 per tonne in 2023/24 to about £80 in 2024/25—a nearly 50% decrease—resulting in a £260,000 loss for the council. This downturn is part of a national trend, with 21 plastics processing facilities closing in the last two years. Although the market shows signs of slow recovery, it may take over a year to stabilize according to the council’s corporate assets and environment scrutiny report.
An additional £100,000 in expenses has arisen because the off-takers handling wood recycling relocated from Newport to Barry, increasing haulage costs by £25 per tonne due to the longer distance.
In total, the council is experiencing a £760,000 shortfall in recycling materials income and an extra £309,000 in related operational costs. Steve Bridger, Chair of the Corporate Assets, Transport, and Environmental Services Committee, remarked it was “deeply depressing” that these unforeseen losses exceed the amount saved by proposed library service cuts, which may see the closure of three local libraries.
Earlier this year, the council reduced black bin collections to once every three weeks to save money and encourage more recycling. However, with only three months of data, it remains uncertain how this will affect recycling volumes and related revenues.
North Somerset Council is also grappling with a projected £25 million budget gap for the upcoming financial year, driven mainly by rising social care demands and costs. Top finance officers warn that balancing the budget will require “exceptional financial support” from the government, potentially involving borrowing to fund efficiencies or permitting council tax increases beyond the 5% referendum limit.
Council leader Mike Bell stated, “We are forecasting a £25 million budget gap and are doing everything possible to address it. This includes service cuts, advocating for fair government funding, and making tough decisions on potential council tax rises.”