WRAP confident about future despite funding cut

In its Annual Report and Consolidated Accounts for the year ended March 31 2013, the not-for-profit organisation states it will need to focus on fewer priorities now that its funding has been cut by the Department for the Environment, Food and Rural Affairs (Defra).

WRAPs total income for the year was 63.2 million down from 65.6 million in 2012 reflecting a reduction in Defra funding, according to the organisation. WRAP also receives funding from the Scottish, Welsh and Northern Irish devolved institutions.

The organisation also spent around 2 million less on programmes compared to the near 50 million it spent in 2012.

The reduction comes after Defra launched a review and consultation of its funding for WRAPs activities in England (see letsrecycle.com story) and funding has been agreed at a significantly reduced level of 15.5 million in 2015/16. The organisation currently receives 25.7 million from Defra.

In June 2013, the Local Authority Advisory Committee (LARAC) warned of wide-ranging indirect effects from cuts to WRAP funding (see letsrecycle.com story).

But, writing in the report, WRAP chairman Peter Stone described the funding cut as neither unexpected nor surprising given the UK governments commitment to reducing the budget deficit.

And, despite the uncertainty highlighted in the report over the level of future funding, it states that WRAP directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.

Mr Stone said: Despite the inevitable cut, we view the settlement as a huge vote of confidence in the work WRAP does. Less money means rightly that we will need to focus on fewer priorities and we will be discussing the detail of our future work with Defra over the coming months.

He said that WRAP would still be receiving significant funding, adding: WRAP is in very good shape and we are confident about the future.

Successes

The annual report also highlights its successes over the year, such as the third phase of the Courtauld Commitment for retailers with an increased focus on food waste; a new voluntary agreement to cut food and packaging waste in the hospitality sector; and research it conducted showing that 238 million-worth of textiles is sent to landfill in the UK each year instead of being reused, recycled or sent for energy recovery.

Furthermore, the report notes the recent launch of its new 15 million Rural Community Renewable Energy Loan Fund in 2012/13, as well as its continuance of funding projects such as the 10 million Anaerobic Digestion Loan Fund, the 3.8 million Mixed Plastics Loan Fund and the 1.5 million Waste Prevention Loan Fund.