Memorandum submitted by the Department
for Environment, Food and Rural Affairs
1. The Government welcomes the Select Committee's
inquiry into the future of waste management. This Memorandum draws
the Committee's attention to information which may help it in
its deliberations.
2. In February 1992 the Department gave
the Committee a Memorandum constituting the Government's Reply
to the Fifth Report of Session 2000-01 from the Environment, Transport,
and Regional Affairs, Delivering Sustainable Waste Management.
3. The Memorandum drew attention to the
Performance and Innovation Unit (now the Strategy Unit) review
of the waste strategy which had recently commenced. Subject to
this review the Memorandum set out the Government's view at the
time on the recommendations contained in the Committee's report[1]
STRATEGY UNIT
REPORT
4. The Strategy Unit published its report
Waste Not, Want Not, A strategy for tackling the waste problem
in England in November 2002. Their work involved a thorough
analysis of the problem and of the potential solutions.
PRE BUDGET
REPORT
5. The Strategy Unit Report was published
alongside the Pre Budget Report which set out the first steps
in the Government's response—on landfill tax, the landfill
tax credit scheme, waste reduction and waste incineration tax.
These steps, set out more fully in the Pre Budget report, can
be summarised as follows.
LANDFILL TAX
6. The Government will consult on a revenue
neutral proposal to increase the landfill tax escalator to £3
per tonne in 2005-06 and to increase the rate of tax by at least
£3 per tonne in future years, on the way to a medium to long-term
rate of £35 per tonne.
7. The Government will consider options
for recycling revenue in order to gain the greatest impact on
waste minimisation and recycling, for decisions in Budget 2003.
LANDFILL TAX
CREDIT SCHEME
(LTCS)
8. The Government has decided to reform
the Landfill Tax Credit Scheme (LTCS) from 1 April 2003. Approximately
one third of the UK funding, around £47 million, will continue
to be made available through a reformed tax credit scheme for
spending on local community environmental projects. The remainder,
£100 million in 2003-04 rising to £110 million in 2004-05
and 2005-06, will be allocated in public spending to encourage
sustainable waste management.
9. In the light of LTCS reform, the Government
will announce its final decisions on sustainable waste management
spending, and on the administration of the tax credit scheme for
local community environmental projects, over the coming months.
Reducing the rate of growth waste volumes and increasing recycling
through national kerbside recycling schemes and secondary market
development will be priorities for additional investment.
WASTE REDUCTION
10. The Government has ruled out the introduce
tion of a national tax on household waste. In keeping with the
freedoms and flexibilities agenda endorsed by the Local Government
Association, the Strategy Unit has proposed that local authorities
should be able to develop innovative waste minimisation solutions,
provided that adequate recycling facilities are available.
WASTE INCINERATION
TAX/REVIEW
OF ENVIRONMENTAL
AND HEALTH
EFFECTS
11. Budget 2002 announced that the Government
would consider the case for an economic instrument for incineration.
There are a range of issues associated with developing an effective
waste management and disposal mix. The Government will therefore
commission a review of the environmental and health effects of
all waste management and disposal options. The case for using
economic instruments for incineration will be considered in the
light of this work, and in consultation with other stakeholders.
Government Response to the Strategy Unit Report
12. The Government is considering all the
Strategy Unit's recommendations, and with the close involvement
of the Delivery Unit, the robust delivery mechanism necessary
to deliver waste minimisation and higher recycling rates.
13. To coordinate activities across government,
the Economic Secretary to the Treasury is chairing a ministerial
group, to report in Budget 2003, involving the Department for
Environment, Food and Rural Affairs (Defra), the Office of the
Deputy Prime Minister (DPM) and the Department of Trade and Industry.
14. The Government is planning to issue
a response to the recommendations in the Strategy Unit's Report
around the time of Budget 2003. While there is no formal consultation
on the Strategy Unit's report, organisations wishing to comment
have been asked to do so by the end of January 2003.
15. The Government looks forward to hearing
the conclusions of the Committee's deliberations.
Department for Environment, Food and Rural Affairs
15 January 2003
1 Fourth Special Report of the Environment, Food and
Rural Affairs Committee Delivering Waste Management: Government
Reply to the Fifth Report of Session 2000-01 from the Environment,
Transport and Regional Affairs Committee, (HC 659). Back
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