In yesterday’s Budget speech, Chancellor Alistair Darling confirmed that the existing landfill tax escalator of £8 per tonne for active waste will be extended for a further three years to 2013.
The lower rate applying to inactive waste will be frozen at £2.50 per tonne for 2010/11 in a bid to ease pressure on sectors facing difficulties due to the downturn in the construction market.
In the Budget report the Treasury explained that, by increasing the costs of sending waste to landfill, the tax encourages use of, and investment in, sustainable alternative treatment options, such as sorting machinery, recycling and anaerobic digestion.
The government will also be launching a consultation on reforms to modernise Landfill Tax legislation. The Budget report said: "In addition, the Government is assessing the case for introducing further restrictions on the landfilling of biodegradable waste and recyclable materials. Targeted restrictions on landfill could be a cost-effective means of achieving carbon energy savings from waste.
Commenting on these announcements, Richard Skehens, Grundon’s Managing Director and a former chairman of ESA said:
“This is good news for Grundon and for the waste industry as a whole. By introducing an element of certainty to the market, this provision will make it easier for both our customers and ourselves to plan for diversion of waste from landfill and to investigate alternative technologies”