COUNCILLORS have spoken of their surprise at the ease with which a private firm has walked away early from a £120 million contract to collect waste from four councils.

Outsource giants Kier has “mutually agreed” with the East Sussex Joint Waste Partnership (ESJWP) to end the decade-long deal four years early in June 2019.

The firm, which said the agreement follows “significant change in the recycling market”, made the announcement on the same day it revealed record annual revenues of £1 billion and profits of £56 million.

Opposition councillors warned the move could see Eastbourne, Hastings, Rother and Wealden councils, which currently save £3 million a year under the agreement, having to pay much more as they look to strike up an agreement with a new partner.

Council leaders said partners had concerns about the level of service provided and said authorities could now bring some or all waste services back in house.

Kier began running waste operation services in Eastbourne and Wealden in April 2013 and Hastings and Rother in 2014.

The contract, covering waste and recycling for more than 200,000 homes along with street and beach cleaning, had an optional ten-year extension.

In July, Kier Group announced it was setting aside £35 million to cover future expenses caused by the falling price of recyclates.

The firm, which also ran highways services for East Sussex County Council up to May, said the financial performance of its environmental services business continued to be affected by the low oil price.

Hastings Borough Council leader Peter Chowney said partners felt certain aspects of the contract were not “working very well” with little flexibility for street cleansing in his seafront town.

He added: “We would like to bring street cleansing back in house if possible and potentially flytipping.

“At the moment if someone reports a flytip, we have to send one of our staff out who sizes up the amount dumped and then raise an order with the contractor.”

Rother district councillor Katherine Field said: “If the contract was written properly and agreed properly, it seems odd to me they would be able to leave in this way.

“If I got a quote and a contract for work on my house, I would expect them to carry it out as agreed.”

Julian Tranter, Kier managing director, said: “We’re proud of our satisfaction rate [in East Sussex] of 95 per cent and our investment in local community projects.

“Following significant change in the recycling market, Kier and East Sussex Joint Waste Partnership have mutually agreed to end the contract with effect from 28 June 2019.”

A ESJWP spokesman said: “The average recycling rate across the partnership has increased from 37 per cent to 40 per cent: that’s an extra 1,500 tonnes or 130 lorry loads a year.

“Our focus as a partnership remains on the standard of services being provided for residents so we will continue working locally with Kier to achieve the best possible levels of service over the next two years.”