Concerns have been raised that the lack of certainty on landfill tax after 2015/16 in yesterdays (December 5) Autumn Statement may jeopardise future green growth and investment in the waste sector.
George Osbornes Statement (see letsrecycle.com story) was met with disappointment in the waste management industry as it included no mention of landfill tax, which is set to rise from 72 per tonne to 80 per tonne in April next year. Beyond 2015/16 the levy rate has not been set, but it is thought that it will not fall below 80 before 2020.
As such, the Environmental Services Association (ESA) said it was disappointed, arguing that the industry has been desperately calling out for clarity on the future of landfill tax but has now effectively been told to wait until the 2014 Budget.
An ESA spokesman said: Without greater certainty over future landfill tax levels, the industry could struggle to persuade investors that the UK is fully committed to the circular economy and wont return to its wasteful past.
The spokesman said the government should be putting in place policy and fiscal support for infrastructure development, but that this would now be reliant to a much greater extent on uncertain commercial and industrial waste streams which will make it harder to finance.
The spokesman commented: We can only hope that the Budget next year will finally bring us the clarity we need on landfill tax and the support which would help underpin the development of merchant waste infrastructure.
CIWM
Also expressing disappointment about the lack of certainty given to the industry was the Chartered Institution of Wastes Management (CIWM), which said there were slim pickings for the waste and resource management industry in the Chancellors Statement.
CIWM chief executive Steve Lee said: We are becoming accustomed to finding very little good news in the Chancellors statements and today is no exception. Coupled with the recent ministerial letter signalling a scaling back in Defra’s work on waste and a disappointing National Infrastructure Plan 2013, it is clear that our industry can expect little support from the government to deliver its significant green growth and jobs potential.
‘It is clear that our industry can expect little support from the government to deliver its significant green growth and jobs potential’
CIWM chief executive Steve Lee
Mr Lee also expressed concern about budget cuts to Defra, the Department of Energy and Climate Change (DECC) and the Department for Business, Innovation and Skills (BIS), which he said could mean that policy support in important areas such as resource security, industrial strategy and local economic development, and the circular economy will be further weakened.
He said that a lack of money doesn’t have to mean lack of ambition and leadership, adding that the green growth agenda had again been largely left out in the cold by the Chancellor.
Mr Lee commented: While we didn’t expect any substantive announcements, this Statement underlines the government’s hands-off approach to the future of this industry and a lack of regard for the role it can play in delivering a more sustainable and low carbon future.
Veolia
Meanwhile, waste management firm Veolia Environmental Services responded to short term measures outlined by the Chancellor to reduce household energy bills, arguing that greater focus on energy-from-waste would help diversify UK renewable energy and stabilise prices in the long term.
Estelle Brachlianoff, Veolias executive vice-president for the UK and Northern Europe, said: We must diversify further, and in doing so we should not ignore a vast resource that is quite literally sitting on our doorstep: household black bag waste.
She highlighted Veolias recently launched district heating scheme to supply homes with heat and hot water from its South East London Combined Heat and Power Plant (SELCHP) as an example of profitable project converting energy into waste (see letsrecycle.com story).
Ms Brachlianoff also said that commercial residual waste was a major untapped resource that is currently being overlooked.
She said: It is estimated that waste from homes and businesses could provide heat and power for over 250,000 homes in London alone but this means changing perceptions that renewable energy is just about wind turbines and solar panels.
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