The Treasury documents accompanying the Budget statement say that, building on the annual 1 per tonne increases in landfill tax, “the Government anticipates that the standard rate of landfill tax will need to be increased significantly in the medium term as part of the mix of future policy measures. Future decisions on landfill tax and the case for a tax on incineration will be informed by the Performance and Innovation Unit (PIU) waste project findings.”
And, the documents notes that the government has also announced that it will consult during 2002 about the tax treatment of waste oil used as a fuel, as part of its commitment, outlined in Waste Strategy 2000, to examine ways of enhancing the competitiveness of regenerated, or recycled, oils.
Landfill Tax Credits
On Landfill Tax Credits, no decisions have yet been made. The Treasury said: “The government is currently consulting on the future of the landfill tax credit scheme (LTCS). The consultation seeks views both on options for funding mechanisms and on priorities for support. Responses to this consultation will be considered in the context of Spending Review 2002.”
Commenting on the announcements, the Financial Secretary, Paul Boateng said:
“We are today showing that environmental protection can be achieved by working with business and consumers, harnessing the power of markets rather than working against them. Economic efficiency and environmental protection can go hand in hand. Wherever we can make markets and the economy work more effectively and in turn secure environmental benefits we will do so.
Other topics covered included:
Modernising road haulage taxation: the Government has today announced that it aims to introduce a distance-based road-user charge for lorries by 2005 or 2006. In recognition that the UK haulage industry already contributes towards these costs, the Government will introduce off-setting tax cuts for the haulage industry when the new charge is introduced. More details will be outlined very shortly. This follows the Government's announcement in the November 2000 Pre-Budget Report of its interest in lorry road-user charging and the wide-ranging simplified and environmentally based reforms to lorry VED in December 2001. To provide stability, Budget 2002 freezes VED for lorries.
oils fraud: announcing a comprehensive strategy to tackle the rising problem of oils fraud, including the introduction of an approval scheme designed to tighten controls on the distribution network for rebated fuel;
Waste oils:The Government has also announced that it will consult during 2002 about the tax treatment of waste oil used as a fuel, as part of its commitment, outlined in Waste Strategy 2000, to examine ways of enhancing the competitiveness of regenerated, or recycled, oils;
improvements in the public space: taking forward changes to the operation of VED to ensure that car-owners remain liable for their cars, to help crack down on abandoned vehicles and to assist more generally in tackling crime.
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