Dorset Waste Partnership’s budget forecast for the end of the year has improved by more than half a million pounds.
The council-owned business which collects the county’s rubbish had been predicting an overspend of £723,000 in September, but has now reduced the gap to an estimated £180,000.
The director of Dorset Waste Partnership, Karyn Punchard, said the budget forecast may change again because of fluctuations in fuel prices and the price the partnership is able to achieve for materials it recycles and sells.
The majority of the savings have been achieved by a reduction in waste being collected and taken to landfill resulting in £796,000 fewer overheads than expected.
On the negative side the price the organisation has been able to achieve for recycled materials it sells is £707,000 less than expected, due to China’s decision to reduce what it buys on the world market.
According to a report to the DWP joint committee on November 5, the current market conditions are not favourable in the global waste disposal market, and the cloud of Brexit only adds further uncertainty.
“With a combined contract value of around £10m, a small change from our current prices – either favourably or unfavourably – could have a big impact on the waste disposal budget.”
The organisation has an annual revenue budget of around £33million and a capital budget of £5million–some of which has been set aside for 28 new vehicles this year to replace ageing lorries which are costing increasing amounts to repair.