As part of the package of financial measures in the Chancellor's Budget today, the Treasury confirmed that as expected, the Landfill Tax will go up to 14 a tonne this year. 15 a tonne in 2004-05 and then 18 a tonne in 2005-06 with 3 a tonne increases each year until a 35 a tonne figure is reached.
The lower rate of Landfill Tax, applying to inactive or inert waste, remains unchanged at 2 per tonne.
The government said it was looking into “how best to ensure that Landfill Tax increases are revenue neutral to local government while providing incentives for landfill diversion and the work needed to build a more effective municipal waste performance framework in cooperation with local government.”
The Treasury has also announced a successor to DEFRA's 140m Waste Minimisation and Recycling Fund today. A “non-ring-fenced” fund will be provided for local authorities to improve household waste management, called the Waste Management Performance Fund.
Step-change
A statement from the Treasury said: “Consistent with its commitment to empowering local government, the Government will reform the Waste Minimisation and Recycling Fund into a local authority Waste Management Performance Fund in England. The Fund will provide non-ringfenced incentives for local government to deliver a step-change in sustainable waste performance for all households.”
Operational details of the new Performance Fund will be finalised following a government consultation with local authority stakeholders, the Treasury said.
It is as yet unclear whether the new Waste Management Performance Fund in England will be funded from Landfill Tax revenue that had previously gone into the Landfill Tax Credits Scheme.
The Treasury did confirm that following reform of the Landfill Tax Credit Scheme, a proportion of the funding previously going through the scheme would go into public spending “on a new sustainable waste delivery programme”. This would see 100 million available in 2003-04 and 110 million in 2004-05 and 2005-06, it said.
The spending programme in England, to be managed by DEFRA, will seek to help households reduce the amount of waste they produce, increase access to doorstep collection of materials for recycling, promote the development of new and viable waste management technologies, and provide local authorities with the support they need to deliver best practice.
LTCS
The successor to the LTCS will see about 47 million per year for spending on local community environmental projects, as was expected. This amount was “broadly similar to current levels” going to non-waste management related projects in the old LTCS, the Treasury said.
The government will also continue work with Entrust, the regulator of the scheme, and other stakeholders to improve the scheme’s operation, it said.
Administration of the scheme will be simplified through a reduction in the level of information required from projects and through the use of common systems wherever possible. Better information will be recorded on project funding and audit processes will be improved. The government will also improve monitoring and evaluation of the scheme and develop measures of value for money.
Health
As was suggested by last year's Strategy Unit report, the government has said it will commission a review of the environmental and health effects of all waste management and disposal options.
“The case for using economic instruments for waste incineration will be considered in light of this work, and in consultation with other stakeholders,” the Treasury said.
As part of his Budget speech in the House of Commons, Chancellor Gordon Brown also said that the planning process would be reformed to help towards stability.
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