Councils call for landfill tax freeze in Budget

Landfill tax should be frozen at the current rate of 72 per tonne with the revenue invested in recycling rather than being used to bolster the Treasurys coffers, the Local Government Association (LGA) has urged.

Landfill tax is set increase from 72 to 80 per tonne when Chancellor George Osborne announces the Budget for 2014/15 on March 19, but the LGA yesterday (March 6) rallied against any rise, claiming that the tax has achieved its purpose.

The LGA, which represents 421 local authorities in England and Wales, has repeatedly argued against the tax escalator and states that there is no evidence to suggest an increase in landfill tax will increase recycling levels.

It also calls for landfill tax paid by the commercial sector to be reinvested in new waste technology.

According to the LGA, each household will pay 30 towards landfill tax in 2014/15 and with current planned increases would cost taxpayers more than 200 million more in 2020 than it would if it was frozen at 72 per tonne.

Councillor Mike Jones, chair of the LGAs environment and housing board, said: Instead of using the receipts from the tax to boost recycling technologies and reward residents for the gains made in recycling levels, the Treasury has held onto receipts.

In its present form, landfill tax is punishing taxpayers, who are paying 30 per household every year but seeing no returns. We need a clear indication from the Chancellor that this tax will be frozen at its present rate, with the money raised from it returned to taxpayers and invested in growth.

Budget

The higher rate of landfill tax for active waste has been set at 72 per tonne since April 2013 and will rise to 80 in April this year, but it is not yet known how much landfill tax will be from 2015/16.

As such, in order to plan for future investments in infrastructure and services, the waste and recycling sector has previously sought clarity over whether the landfill rate will be frozen at the 2015/16 rate or will continue to increase beyond this (see letsrecycle.com story).

Also eagerly awaited in Mr Osbornes Budget this month is an announcement on business glass packaging targets, over which Defra held a consultation in January (see letsrecycle.com story).