Treasury to urgently consider landfill tax concerns

The Treasury has said that it will urgently consider concerns being raised by skip hire firms regarding the changes to landfill tax.

However at a meeting in the House of Commons today (May 31), representatives from the skip hire and construction industry said it may be too late for some, as businesses are already suffering as a result.

The meeting was organised by Labour MP for Mitcham and Morden, Siobhain McDonagh, in light of the changes to landfill tax that were announced by Her Majestys Revenue and Customs (HMRC) earlier this month (see letsrecycle.com story).

Speaking at the meeting, a Treasury official, said: I would like to assure you all in the capacity that I have that these concerns are getting back to the ministers but rest assured that they are going to consider these urgently and report to you in due course.

While the official said he did not want to make any promises or raise any hopes he said he would report back to the ministers following the meeting and understood the urgency of the matter.

The landfill tax concerns centre around a brief published on May 18 by HMRC which said that the standard rate of landfill tax, 64-a-tonne, must now be applied to trommel fines which were previously charged at the lower rate of 2.50. Material used in the top fluff layer also now incurs the standard rate whereas it was previously untaxed.

Skip hire firms are now calling for the changes to be put on hold to allow time for a consultation to take place and to allow businesses time to prepare for the changes if they are re-introduced.

Drawing Board

The meeting was also attended by Rachel Reeves, shadow chief secretary of the Treasury and Labour MP for Leeds West. At the meeting Ms Reeves said the government needed to go back to the drawing board.

She said: It seems from the lack of replies from Caroline Spelman and Eric Pickles and the lack of people here today that no one [in government] has been talking to each other about it. The government needs to go back to the drawing board so it is a workable policy to make sure its fair for all of your industries.

Ms Reeves also stated that she would put it to parliament when it is back in session a week on Monday (June 11). Ms Reeves said: In the first week we would like to get an urgent question to the Treasury or the HMRC and find out what is happening and what they are going to do about this.

However smaller firms at the event explained that this could be too late and that action needed to be taken sooner as businesses had already wound up as a result of the changes. They also claimed that firms were unable to collect some skips they had put out prior to the changes as they could no longer afford to dispose of the material which could lead to an increase in fly tipping.

Industry

The meeting was attended by a number of large and small waste management and skip hire firms as well as the Federation of Small Business (FSB) and the Federation of Master Builders.

The bulk of the skip hire industry was represented by a committee formed at a meeting at the Holiday Inn in Heathrow yesterday (May 30) which was coordinated by Richard Hunt of the Plant and Waste Recycling Show (PAWRS). Members of the newly appointed committee include: Mr Hunt; Mark Bensted, managing director of Powerday; Jack Biel, director of Gowing and Pursey; and, Paul Evers, director of Ace Waste Haulage.

Speaking at the event, Mr Bensted said the industry was most concerned about the lack of consultation and wanted the government to freeze the tax and allow for a six month transition period before the changes are reintroduced.

He said: We are asking that the imposition of the higher rate of landfill tax in respect of inert fines is suspended for a period of six months. We would also ask that a consultation now takes place within the industry. We are suggesting that a working group is established with senior representatives from the industry and delegates from the government to discuss the practical issue to the change.

Protest

The skip hire industry has already voiced its concerns as it sent a letter to environment secretary Caroline Spelman and communities secretary Eric Pickles and a separate one to Prime Minister David Cameron (see letsrecycle.com story). However at the meeting today it was revealed that as yet they have had no response.

Earlier this week the skip hire industry promised to bring London to a halt over the Jubilee weekend if no action was taken (see letsrecycle.com story).

Industry representatives told letsrecycle.com today (May 31) that while they didnt want it to come to that, the protest could still take place unless the government takes action.