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WRAP projects under threat in funding review

Several current and proposed workstreams run by the Waste and Resources Action Programme could lose funding because of a review by Defra over how it spends Landfill Tax revenues.

The WRAP workstreams and projects run by a number of other organisations are at risk in an assessment by the Department over how it allocates money from the Landfill Tax-backed BREW fund. BREW is primarily aimed at backing projects to improve business efficiency in waste and other resource areas. Defra is reviewing allocations for the financial year 2007/08 as well as whether the BREW scheme has a future at all beyond 2008.


” Ministers are in the process of reviewing Defra's financial priorities to ensure optimal fit with the Department's strategic priorities “
– BREW consultation

With Defra under financial pressure, the consultation document says that the amount of funding available for 2007/08 was set at 156m but warns this is subject to change. The document stated: “Ministers are in the process of reviewing Defra's financial priorities to ensure optimal fit with the Department's strategic priorities.”

Technology

For the next financial year bids have been received totalling some 166 million and some confirmed allocations totalling 78m will be made. These include 30m for the Department of Trade and Industry's technology programme and 35m to the Carbon Trust. Defra will also take 2.1m of the money for spending on its own work on a waste data strategy.

The remaining projects are being assessed on factors such as their costs savings to business and the materials diverted from landfill and a ranked list of 31 bids for project support has been drawn up.

Of the 31 bidders for 88m worth of funding support, the top three listed would get a total of 32m which includes 17.5m for Envirowise.

A number of WRAP projects come quite high up in the ranking including work on retail packaging and in the construction sector.

But, WRAP projects involving batteries, the development of markets for tyres, the promotion of recycled paper and work on export markets could be in jeopardy. Some of these projects extend existing work.

Agency

Bottom of the list of projects to win support from the BREW fund is an Environment Agency scheme to help businesses improve waste management by promoting lawful waste management and tackling illegal waste services.

The Environment Agency also had a bid for funding support for a waste technology centre thrown out altogether. Defra said that while there had been some work on this by the Agency already, “we judged this proposal unsuitable because of its focus on municipal waste, its limited capacity to benefit business and the slow progress of the project so far.”

Bradshaw

Decisions on what projects will face the funding axe could be made by Environment Minister Ben Bradshaw before Christmas although an official announcement may not be made until January.

Mr Bradshaw will also be involved in decisions on whether the money that comes into BREW, from the annual 3 a year Landfill Tax escalator, will be spent more on household waste projects than the business waste stream. The Treasury has emphasised that the burden of the Landfill Tax on businesses has been softened because some of the revenue has been spent on projects which help businesses. However, with Defra short of funds, this approach to spending escalator monies may well change.

More information is available by emailing: brew@defra.gov.uk

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