Landfill tax escalator extension to cost taxpayers and local authorities £110m a year
In Chancellor Alistair Darling’s 2010 Budget report, there were numerous changes to waste policy, but none so financially affecting to local authorities and taxpayers than the landfill tax escalator extension.
This escalator means that landfill tax will rise by a certain amount every year, and according to the Budget report it is to continue doing so until the year 2014. Local authorities and waste disposal firms are currently charged £48 per tonne of waste they send to landfill, but this is set to rise by £8 every year until it finally hits £80 per tonne in 2014.
The government’s plan is to increase the amount of waste recycled or composted, subsequently cutting down on the volume sent to landfill. Savings on landfill tax can then be reinvested by local authorities into recycling services.
Despite this, the announcement has had a widespread effect in the waste and recycling industry, with many feeling it will mean significant extra costs for councils and taxpayers. The Local Government Association (LGA), for example, believe that council tax bills will have gone up by around £49 a year by 2014.
It isn’t all bad news, however. Despite the first hike in landfill tax occurring last April 1st, some waste disposal firms such as London-based Reston Waste Management have managed to keep their prices constant.
Tags: Skip HirePrevious Post:« Hiring a skip: things to consider
Next Post: MRF event debates carbon footprint of kerbside collections »
