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Councils should trial variable charging for waste, says Strategy Unit

Local authorities should have the freedom to incentivise residents to reduce and recycle waste, the Prime Minister's Strategy Unit report said today, reports Kate Freeman.

The report, which sets out proposals on how England can meet EU recycling and waste reduction targets, lent its support to the idea of 'variable charging' for waste, saying that by 2005/06, 30% of collection authorities should have tested “incentive-based schemes”.

The report's authors explained: “Currently households pay the same Council Tax no matter how much waste they produce or whether they recycle or not. This means that they have no incentive to manage their waste in more sustainable ways.”

“Bin tax”

They cited 17 other countries where financial incentives had reduced waste growth. Suggested measures included Council Tax discounts or reward schemes for people who recycle or compost; variable charging schemes – sometimes referred to in the press as a “bin tax” – where the waste element would be removed from council tax; or a household charge according to how much unsorted waste produced.

The Chancellor's pre-Budget report, also released today, supports this plan. It ruled out a national tax on household waste, saying that “local authorities should be able to develop innovative waste minimisation solutions, provided that adequate recycling facilities are available.”

Aims

Other strategy aims are: to reduce household waste growth from 3% to 2% per annum by the end of 2006, to get 50% home composting and 45% household waste recycling or composting by 2006 and to increase kerbside collections.

The Strategy Unit proposed a raft of other tax-based incentives: where legal, it said, recycled products could benefit from reduced VAT in order to expand markets and levies on disposable items should be considered.

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