The steep rises would see a Landfill Tax level of 35 in 2009 if the Treasury accepted the recommendations which have already been submitted in writing. Arguments in favour of the rise are expected to include that it would help make recycling more viable and that it would help the UK to achieve targets for reducing the amount of waste landfilled.
Chancellor Gordon Brown and his officials are currently putting together their Budget package for next Wednesday (March 7) and announcements on the future of the Landfill Tax credit system are expected. However, no announcements on precise levels for the tax from 2005 are expected although the Treasury may give some information about its current way of thinking. The tax will rise to 12 per tonne this year and rises by 1 a year to April 2004.
The delegation to meet Treasury officials this afternoon will come from the Association Parliamentary Sustainable Waste Group which includes representatives of manufacturing industry and the waste management sector. It has drawn up the proposals with the help of consultant Dr David Davies.
Within Europe, the UK still has one of the lowest Landfill Tax rates as can be seen in the table which gives the average rate of landfill tax in Europe in Euros per tonne.
The group’s principle recommendations are that the concept of an annual increase should be retained beyond 2004 with the 4 a rise per annum thereafter. It recommends that the government announces its intention by the end of the year and also calls for inert waste used in flood prevention schemes to be exempt from tax.
On local authority funding it says there is little available to meet the costs of expanding recycling and meeting targets, partly because councils overall will be paying about 420 million in tax in 2001/2002.
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