The waste and recycling industry is again calling on the Chancellor to provide clarification on what the rate of landfill tax will be from 2015 ahead of the Budget announcement on Wednesday (March 19).
In addition, calls have come for the Budget to signal increased investment in tackling waste crime and reform of the PRN system.
The Environmental Services Association (ESA), the Renewable Energy Association (REA) and plastics recycler Closed Loop Recycling Ltd are all urging George Osborne bring certainty on the landfill tax to allow businesses to plan ahead with their investments certainty which was not given in the 2013 Autumn Statement (see letsrecycle.com story).
Landfill tax for active waste is set to rise from 72 to 80 per tonne in April this year, but it is not yet known how much landfill tax will be from 2015/16 with an announcement therefore expected on this in the Budget this week.
But, while some are seeking an increase in landfill tax from 2015 to boost investment in infrastructure, the Local Government Association (LGA) earlier this month urged the Chancellor to freeze the current rate of 72 per tonne instead of increasing it as planned to 80 per tonne from 2014/15 (see letsrecycle.com story).
Also eagerly awaited in the Chancellors budget is an announcement on business glass packaging targets, over which Defra held a consultation in January.
Responding to the glass consultation, the ESA previously said it preferred a do nothing approach, while compliance schemes such as Valpak and 360 Environmental favour lowering the target to 75% (see letsrecycle.com story).
‘The landfill tax escalator has done an excellent job in signalling future rates to the industry, and allowing investments in alternative infrastructure to be planned in advance. However, this is coming to an end and we now need clear direction from the government on the future for landfill tax. This is crucial.’
Jacob Hayler, Economist at the ESA
ESA
The Environmental Services Association (ESA) said that following a challenging few years for the UKs waste and resource management sector, the introduction of measures to unblock a circular economy could stimulate 10 billion investment in UK waste and resources infrastructure.
But, it added: this will only be recognised if the industry is given the certainty it needs to make those investments.
Economist at the ESA, Jacob Hayler, said: The landfill tax escalator has done an excellent job in signalling future rates to the industry, and allowing investments in alternative infrastructure to be planned in advance. However, this is coming to an end and we now need clear direction from the government on the future for landfill tax. This is crucial.
Mr Hayler also called for more resources for the Environment Agency in order to tackle waste crime, which recent reports have suggested costs the UK up to 800 million each year.
He commented: This undermines investments made by the legitimate industry, and the Chancellor should use his Budget to signal additional resources for the Environment Agency, and relevant government departments, to combat illegality in the waste and resources sector.
Finally, Mr Hayler also urged the Chancellor for provisions in the Budget to help underpin new infrastructure investment, such as new tax allowances, which he said would be a great help.
He added: The waste industry is well placed to invest in new facilities, creating green jobs and boosting local economies. Now that the economy is starting to turn for the better, tax breaks for businesses would help stimulate the private sector even further.
Closed Loop
‘Additionally, we are reiterating our call for PRN reform which creates a more level playing field for UK recyclers. The current system encourages exports of precious waste resource rather than supporting the domestic market.’
Chris Dow, chief executive, Closed Loop Recycling
Dagenham-based plastic bottle recycling firm Closed Loop Recycling, has also urged for certainty over landfill tax beyond 2015, while also calling for a reform of the PRN system in order to create a more level playing field for UK recyclers.
Closed Loop chief executive, Chris Dow, called for a landfill tax increase at least in line with inflation until around 2020 in order to provide confidence and certainty to potential investors in recycling and reprocessing infrastructure.
He also said that the current PRN system encourages exports of precious waste resource rather than supporting the domestic market.
Finally, Mr Dow highlighted the difficulty for small and medium businesses in securing funding for waste and recycling developments, calling on the government to push banks to lend more.
He said: As a business we have big expansion plans indeed weve just completed a 12m investment in new recycling infrastructure at our plastic bottle recycling facility. But as many businesses like ours are finding, bank funding is not as readily available as is needed to drive the UK economy forward.
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