'Indicator' News Letter

Landfill Tax will increase to £24 per tonne on April 1, 2007

Another increase. In the 2003 Budget the Chancellor announced his intention to increase Landfill Tax by £3 per tonne, per year. Well, he’s good to his word, because that’s exactly what he’s done. From April 1, 2007 the rate will be £24 per tonne. You can also expect this rate to increase for the next few years, as his final target price is £35 per tonne.

There is some good news. Unlike most taxes, which disappear into the government coffers, Landfill Tax is different. Why? Because, it’s invested back into ways to minimise the amount of waste deposited in landfill. As part of this investment, the Business Resource Efficiency and Waste (BREW) programme has been developed. How does it work? The treasury have set aside £284 million to support businesses in achieving waste reduction schemes. Most of the money is being used to finance Envirowise, The Carbon Trust and the Waste Resources Action Programme (WRAP). All of which are government agencies that will provide help, free of charge.

It’s not really free. You’ve already paid for the advice via your Landfill Tax, so the more advice and support you get, effectively the more tax you’re getting back. However, this is only a worthwhile venture if the advice and support you’re given is acted is upon.

Tip 1. If you feel that you’re sending too much waste to landfill, contact Envirowise or WRAP and ask for a waste management audit. This will be an in-depth look at how you create a waste, where it can be minimised and the alternatives to sending it to landfill.

Tip 2. Don’t assume the consultant can work miracles, especially if you don’t provide him with all the information required. Prepare for any visit by having everything available.

Issue 7, January 2007

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