No landfill tax clarity in Chancellors statement

The Chancellors Autumn Statement this morning (December 5) provided no clarity on the level of landfill tax after April 2015, which is likely to be a disappointment to much of the waste management industry.

In his Statement, Chancellor George Osborne said UK growth forecast had been raised to 1.4% and that although the deficit was down, it is still far too high and the job is not done.

He added that Britains economic plan is working and that anyone suggesting there could be no growth without spending had been proved comprehensively wrong.

However, there was no mention of landfill tax, despite calls from the Environmental Services Association (ESA), the Local Government Association (LGA) and for Mr Osbourne to provide some certainty on whether the levy will increase and if so by how much from 2015/16 (see letsrecycle.com story).

It is currently understood that the landfill levy which is set to rise from 72 per tonne to 80 per tonne from April next year will not fall below 80 before 2020.

The government is thought to consider the levy more an issue to be addressed in the Budget. It is therefore likely to fall to the Chancellors Budget in March 2014 for any certainty to be given on the levy.

Fuel duty

Although there was little news for the waste management industry in todays statement, Mr Osborne did confirm that the 2p fuel duty rise set for September next year had been cancelled, which he said would save a typical motorist 405 until April 2015.

And, he also announced a series of measures for small businesses, including a tax relief for new social enterprises and the extension of the business tax rate relief for small firms for another year until April 2015.

Future increases in business rates will be capped at 2% from April next year and businesses will be allowed to pay in 12 monthly instalments. Mr Osborne said a review of business tax rates would take place in 2017.

Aggregates

Furthermore, as announced in September, the government will suspend exemptions, exclusions and reliefs from the aggregates levy because they are subject to the European Commissions state aid investigation.

The basic rate on aggregates such as on rock, gravel or sand is 2.00 per tonne, although the levy is lower on smaller amounts.

The government said it would make provision for these aggregates exemptions to be reinstated should the outcome of the Commissions investigation allow, and to enable revenue received as a result of the suspensions to be repaid where practicable.