The Local Government Association (LGA), on hearing of the landfill tax “hike” to £8.00 per tonne from 2008, expressed concern that without new powers to create incentives to encourage people to recycle, councils will be locked into an environmentally unfriendly way of disposing of waste and will face a triple whammy of higher costs, higher landfill tax and fines.
Lord Sandy Bruce-Lockhart
Commenting on the Chancellor’s announcement on landfill tax, Sandy Bruce-Lockhart, Chairman of the Local Government Association said:
“The collection and disposal of rubbish is one of the key financial pressures facing local councils as the amount of waste generated is increasing year on year. The £8 per tonne hike will push up further the cost of sending waste to landfill and become an additional cost to council tax payers unless it is returned to local government in full.
“It is essential that the Comprehensive Spending Review provides councils with the money needed to manage waste against the ever increasing cost of disposal, be that landfill or recycling.
“Councils want an ever better deal for taxpayers but the Government isn’t giving authorities additional money to meet EU legislation and this places mounting pressure on the council tax payer.”
Environmental Services Association
The Environmental Services Association (ESA) however has welcomed the Budget announcement that increases in landfill tax will be offset by reductions in corporation tax.
The ESA Chief Executive said:
“ESA warmly welcomes today’s announcement which sees a return to fiscal neutrality on landfill tax paid by business. We are pleased that additional tax revenue from business as a result of the increase in this component of the landfill tax escalator will be recycled to business through the reductions in corporation tax. This reflects ESA’s long standing and consistent policy that environmental taxes should be fiscally neutral to business.”
Lyons Review
Also noting the publication of Sir Michael Lyons’ inquiry into Local Government, ESA’s Chief Executive said:
“We welcome this review of local Government. Sir Michael Lyons has recognised two crucial issues that must be addressed in order to help the UK become a recycling society.
”It is essential that we have sufficient recycling infrastructure to meet our domestic aspirations and international obligations. Reform of the planning system as outlined by Kate Barker would help create a more certain environment for industry to invest in new facilities.
The association says that it has consistently called for local authorities to be given powers to trial new ways of charging for waste management services.
ESA recognises that further work is required to determine how local charging can be carried out effectively and allowing authorities to introduce local charging is the logical first step.