North Somerset Council is grappling with a £1 million overspend on waste recycling due to falling market prices and increasing disposal costs. Unlike black bin rubbish, recycling materials typically generate income for the council. However, recent fluctuations have severely impacted this revenue stream.
Mickey Green, the council’s Director of Environment, Assets, and Travel, described the situation as “deeply depressing.” He explained that despite an increase in recycling volumes, global market pressures have rendered much of the collected material virtually worthless. For instance, the price of plastic has plummeted from £168 per tonne in 2024/25 to just £80, causing a £260,000 loss in expected income.
The recycling sector has also suffered from infrastructure shutdowns, with 21 plastics processing facilities closing nationwide over the last two years. A report presented to the council’s Corporate, Assets, Transport, and Environmental Services (CATE) scrutiny committee indicated that market conditions may improve, but full recovery could take over a year.
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Another unexpected cost burden stems from a business move; the off-takers responsible for wood waste disposal have relocated from Newport to Barry. This change has forced the council to pay an additional £25 per tonne for transport, culminating in an estimated £100,000 extra expense.
In total, the council faces a shortfall of £760,000 in income from waste recycling materials, compounded by £309,000 in associated cost pressures. Steve Bridger, Chair of the CATE committee, remarked on the severity of the situation, highlighting that the financial loss from market fluctuations exceeds the savings expected from proposed cuts to local library services, which may result in the closure of three libraries.
Earlier this year, North Somerset Council reduced black bin collections from weekly to three-weekly intervals to encourage recycling and reduce costs. While it is too soon to quantify the full impact of this change, early data suggests it could influence recycling volumes and finances.
The recycling woes add to the council’s broader financial challenges. Facing a looming £25 million budget deficit next year—primarily due to escalating social care costs—the council acknowledges it will require “exceptional financial support” from the government to balance its books. Options under consideration include borrowing to fund efficiency savings or increasing council tax beyond the current 5% referendum limit.
Council leader Mike Bell confirmed the tough decisions ahead: “We are forecasting a £25 million budget gap for next year, and we are doing everything possible to close it. This includes cutting services, lobbying for fairer government funding, and considering future council tax rises.”