On the planning and regulatory front, a second phase of the Red Tape Challenge was announced. And, there was confirmation of landfill tax levels for 2014 but no mention of tax increases beyond that.
Other aspects of the Budget include a standstill level for the Landfill Communities Fund; a note about the work of WRAP in supporting businesses; a public sector pay rise of 1%;an update on the Green Investment Bank; and departmental spending cuts in Whitehall.
Red Tape
The Chancellor announced that to further improve the efficiency and effectiveness of regulationthe Government will launch a second phase of the Red Tape Challenge.
In his Budget documents, he said: Alongside implementing the Red Tape Challenge and Focus on Enforcement reforms, this second phase will look at the whole regulatory system including laws, guidance, compliance, and enforcement, through short targeted reviews. The reviews will look at areas such as infrastructure, key stages in the growth of companies, and business activities where negotiating the system is overly complex.
Additional budget controls are to be placed on the Environment Agency and other regulators in the 2015-2016 Spending Round to reduce the costs imposed by regulators of doing business in the UK, without reducing the effectiveness of regulatory enforcement.
The ‘Red Tape Challenge and Focus’ will look at areas such as infrastructure, key stages in the growth of companies, and business activities where negotiating the system is overly complex. The government will seek views from business on what specific problems should reviewed before the launch in the summer of 2013.
Landfill tax
As previously announced the standard rate of landfill tax will rise by 8 per tonne to 80 per tonne from 1 April 2014 (it will be 72 per tonne from 1 April 2013). The lower rate of landfill tax will remain frozen at 2.50 per tonne in 2014-15. But there was no indication of whether there would be further tax rises from 1 April 2015 with some in the waste sector recently arguing that the tax is high enough.
The Landfill Communities Fund money that can go on community and other projects will remain broadly unchanged and is expected to be seen as a positive move. The Budget documents state that the value of the landfill communities fund for 2013-14 will remain unchanged at 78.1 million. As a result, the cap on contributions by landfill operators will be amended to 6.8 per cent. Future decisions on the value of the fund will take into account the level of unspent funds held by environmental bodies.
This is a reminder from the Chancellor that environmental bodies will have to keep ensuring they spend their funds. And, in terms of the 6.8% figure, 6.8% of 72 a tonne tax level is seen as raising about 78 million, similar to 5.6% of 64 (largely because as volumes of landfill reduce the funds raised are maintained because of the higher tax level) and so is a broadly positive measure.
Defra spending
The government is looking to reduce departmental spending in 2013/14 and 2014/15. Most departments can expect to see their budgets cut by 1%, which is hoped to save 1.1 billion and 1.2 billion over the next two financial years.
Under the departmental expenditure limits (DEL) the Department for Environment, Food and Rural Affairs budget will remain at 1.9 billion in 2013/14 however this will be reduced by 200 million in 2014/15 to 1.7 billion. Meanwhile, the Department for Communities and Local Governments budget is taking a hit as its budget is slashed from 25.9 billionin 2013/14 to 23 billion in 2014/15.
The document states: Resource DEL will be reduced by 1.1 billion in 2013-14 and 1.2 billion in 2014-15. This is equivalent to a 1 per cent reduction for most departments. The schools and health budgets remain unchanged. Local Government and police allocations that have been set out for 2013-14 will not be changed.
Councils can also expect to see budgets slashed, however the Chancellor said this will not change from what has been previously announced.
Pay
Those working in the public sector, which includes waste and recycling officers, will see pay rises limited to up to 1% in 2015/16. According to the Treasury, the restraint on public sector pay has been a key part of the fiscal consolidation so far.
Budget 2013 announces that public sector pay awards in 2015-16 will be limited to an average of up to 1 per cent. It will be for departments and Pay Review Bodies to determine the level of award based on affordability and individual recruitment and retention needs.
“Although the majority of the public sector has been subject to pay restraint, some have continued to receive annual pay increases of 7 per cent or more due to progression pay arrangements. In some workforces reforms are already under way. The Government will seek significant further savings through reforms to progression pay in the Spending Round.
WRAP
In an update on the governments plan for growth implementation update, comment is made on the work of the Waste & Resources Action Programme. One of the points of the plan was to increase numbers of mid-sized businesses (MSBs) benefiting from resource efficiency schemes by up to 200. It noted that WRAP has supported 180 MSBs, primarily on supply chain improvements and water efficiency. The objective to support 200 MSBs should be met by summer 2013, well ahead of the end 2014 target.
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