Treasury hints that Landfill Tax could rise faster than 3 a year

A senior Treasury minister has hinted that the Landfill Tax may rise more quickly than proposed in the Chancellor's Pre Budget Report (PBR).

Last month Chancellor Gordon Brown said that from 2005/05, the Landfill Tax would rise by 3 a year, compared to its current increase of 1 per year. The tax, currently set at 13 per tonne, would increase gradually to what Mr Brown said was the “mid- to long-term target” of 35 per tonne.

But last night, Economic Secretary John Healey said that after the tax rises by 3 per tonne in 2005/06, it will then rise by “at least 3 a tonne” in following years.

Following the Chancellor's PBR speech, some waste management experts expressed concern that this rise was not rapid enough to encourage the scale of diversion from landfill to recycling and composting that is needed to meet EU targets.

Challenged by Liberal Democrat MP Sue Doughty over how soon the Government wants the tax to hit 35, Mr Healy said: “The judgements we need to take about the timetable are not ones that we are in a position to confirm at the moment…middle ranking ministers will consider this between now and the next budget.”