BASINGSTOKE and Deane Borough Council is set to save over £40,000 after it decided to transfer a commercial waste service to a national company.

Councillor Hayley Eachus, Cabinet member for community services and environment, has given the green light to the free transfer of the commercial waste and recycling service to Veolia Environmental Services, because the scheme is operating at a loss.

In March 2013, Hamp-shire County Council increased its disposal charges after the local authority started to base the charge on the number of tons of waste that needed to be disposed of. This led to a deficit of £66,334 in 2013-14 and an estimated £31,381 in 2014-15, based on September calculations.

A soft marketing exercise was carried out for companies to express an interest in buying the service from the council but, as the service is operating at a loss, there was considered to be no value in the deal.

As a result Veolia will be given the service from January 1, 2015 with council-approved charges set to remain at the current rate for a further six months until June 30, 2015, saving the borough council £42,800.

Cllr Eachus said: “After reviewing the sustainability of the council’s commercial waste service we have made the decision to transfer it to Veolia, who currently collect the borough’s residential waste, in early 2015.”