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At least 100m will go to waste projects each year when LTCS is reformed

The government has announced changes to the Landfill Tax Credit Scheme after criticism that it hasn't supported enough waste management projects.

As part of the Treasury's Pre-Budget Report, released today, the government said that although the LTCS has supported many worthwhile community and environmental projects, there isn't enough evidence it has delivered a step towards sustainable waste management.

The report also criticised the scheme for its administrative complexity and for “failing to deliver value for money”.

The report said: “Recent changes have improved the administration of the scheme, but will not deliver the strategic and coherent approach to waste management which is needed. The Government has therefore decided to reform the LTCS from 1 April 2003.”

The changes to the LTCS are now being worked on, but the report did reveal some details. The revised scheme would see around a third of its funding, expected to be around 47 million, still going to local community environmental projects. The remainder, about 100 million in 2003-04 rising to 110 million in 2004-05 and 2005-06, will go to encourage sustainable waste management.

“Reducing the rate of growth of waste volumes and increasing recycling through national kerbside recycling schemes and secondary market development will be priorities for additional investment,” the report said.

Devolved administrations will have responsibility for the scheme in their regions, and the government has said that in reforming the LTCS it will ensure that “mechanisms are developed in line with the government's objective to deliver more freedom and flexibility to local service providers”.

The reform of the LTCS will also depend largely on the recommendations of the Prime Minister's Strategy Unit, which is publishing its Waste Review tomorrow.

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