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Treasury confirms review of Landfill Tax Credits Scheme

The government has officially launched a consultation process on the future of the Landfill Tax Credits Scheme in a bid to work out whether to amend it or introduce a new funding system altogether.

Environment Minister Michael Meacher explained today that the government and the devolved administrations are developing a programme for consideration in the Treasury's spending round negotiations.
He said: “There will be talks about any replacement scheme and transitional arrangements that will accompany any change.”

Mr Meacher said it was no secret that the government had been looking at changes to the system. “The scheme has done some good work, looking at the previous government, the poll tax was bad, Landfill Tax Credits good. Now we want to look more broadly at the whole scheme.”

Mr Meacher said that the government is not looking to “jettison all the successful work the Landfill Tax Credits Scheme has generated in recent years.”
The minister denied that the consultation signalled the end to LTCS but said the consultation was “going to see if the funds can be more effectively used as well as what any replacement could like.”

Treasury Minister Paul Boateng, who has direct responsibility for the LTCS, gave a written answer in the House of Commons yesterday, saying: “The Government are committed to meeting the challenging targets for waste recycling set out in Waste Strategy 2000. As stated in Budget 2001, we are attracted to replacing all or part of the landfill tax credit scheme with a public spending programme to direct resources towards Government priorities on sustainable waste management. The Government, together with the devolved administrations, are beginning work on developing options for a spending programme for consideration as part of the spending review 2002. In taking forward this work, the Government will consult with interested parties on the shape of any replacement scheme and the transition to any replacement.”

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