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Taxpayers might be in for a scare as a recent article reveals that landfill charges are set to cost local taxpayers almost three-quarters of a billion pounds next year.
These charges were revealed according to a new analysis carried out by the Local Government Association (LGA), the inflation busting 11% automatic increase set by the Government is being imposed despite the amount of household waste being sent to landfill by councils continuing to fall for the tenth year in a row and the country on course to meet it European environmental targets.
The LGA called upon the chancellor to use the Budget to cap landfill tax and stop siphoning council taxpayer’s money to fill the black hole in Treasury’s books.
Councils can simply not afford to continue with these rate rises and it is clear that it is residents who will suffer as the money they contribute towards local services are diverted away from filling potholes and caring for the elderly to cover up the cost of disposing of waste.
The landfill tax was originally introduced in 1996 to encourage councils and the private sector to reduce the amount of waste they were sending to landfill, this was done to meet the tough European environmental objectives. However, since 2008, the rate rises introduces by both the previous Government and the Coalition will have increased the cost per tonne from £24 to an eye-water £80, therefore increasing the amount councils have to pay out by a quarter of a billion in just five years.
Over the past 10 years councils have worked hard alongside their residents to reduce the amount of rubbish being sent to landfill, this resulted in a 42% decrease. Is it not time for the Government to recognise these achievements and instead of punishing local authorities with higher rates help them with recycling?
Chair of the LGA’s Environment and Housing Board, Councillor Mike Jones, said:
“We recycle more than 43 per cent of our household waste in this country compared to just 10 per cent a decade ago. We are clearly on course to reach our European target of 50 per cent by 2020 and so landfill charges are an unnecessary cost imposed by central government. Further increases beyond 2014/15 would not be fair for councils which have worked so hard to get communities recycling or for the cash strapped residents who have to pick up the bill.”
He continued:
“Since central government started collecting the money generated through landfill tax they will have almost quadrupled the charge from £24 to £80 a tonne. This equates to almost six times the average rate of inflation, yet none of this extra money is being invested in developing our waste infrastructure or helping us hit our recycling targets.”
He finished by saying:
“Over the last decade we have seen a radical shift in our approach to what we throw away and this is largely due to councils to making it easier for residents to sort and dispose of everything from plastic bottles and tin cans to TVs and fridges, even disposable nappies. Landfill tax has played its part in encouraging us all to recycle, but any further increases would be misguided. The Government should be working with councils to help get the costs down, which would free up money to invest in the facilities that are needed to reduce the amount we send to landfill.”
References:
Greenhouse gas emissions have been cut 64% since 1990 by the waste industry, putting them above all the other sectors.
According to an article recently published in Recycling and Waste world, the waste sector has cut their emissions by more than any other industry sector. This is a big achievement for the waste industry however, according to a report by the Committee on Climate Change (CCC) the government believes that stronger incentives can be implemented.
The CCC published the 2012 Annual Progress Report (Meeting the Carbon Budgets – 2012 Progress Report to Parliament), which looks at emissions trends over the past year and also evaluates underlying progress in implementing carbon-reduction measures and policies in the UK.
In chapter 7 of the 2012 Annual Progress Report it discusses the progress of reducing emissions from waste, the emissions produced by the waste industry are mainly methane emissions which arise due to the decomposition of biodegradable waste in landfill sites in the absence of oxygen.
Emissions from waste also arise due to wastewater treatment and incineration of wastes.
The calculation of the emissions which have been reduced is based on the time scale from 1990 up until the latest year of data available, which is 2010. It was recorded that the emissions fell by 3% in 2010 totalling at 64% decrease since 1990. The CCC stated that this marked a “longer-term trend” in falling emissions.
As a results of reduction in the amount of biodegradable waste sent to landfill and also an improved rate of methane capture at landfill sites, emissions have decreased largely.
Further ambitions aim to reduce emissions by 22% in 2010 (72% relative to 1990), these will reflect a further 25% reduction in the amount of biodegradable waste landfilled in 2020 relative to 2010, this is required in order to meet UK targets under the EU Landfill Directive.
The report compiled by the CCC also implies that there is the possibility to stretch these further opportunities for waste prevention and recycling and other disposal methods such as; anaerobic digestions and composting.
It was also said that the government should consider increased ambitions for the next decade.
If further ambitions are implemented to go beyond the 72% decrease by 2020 it can be helped by restricting certain materials going to landfill; for example wood, textiles and paper separate collection of food waste was also flagged as a route to greater emissions savings.
The CCC said:
“We recommend that the government considers increasing its ambitions for emissions reduction from waste,” the report concluded. “In particular, specific strategies for reducing both food and paper/card waste sent to landfill should be developed.”
This Annual Progress Report is the fourth report to government on the progress that the UK is making towards tackling climate change and also meeting the legally binding targets under the Climate Change Act to cut emissions by 80% by 2050.
What has driven a reduction of emissions in the waste sector?
The main driver of reduced emissions from landfill has been the UK Landfill Tax which was introduced in 1996.
Landfill site operators pay this tax, they pass on the costs as gate fees to Local Authorities and businesses, this then creates and incentive for them to seek means to reduce the waste they send to landfill.
There has been an increase in the initial rate of £7 per tonne to £64 per tonne; this will apparently rise to £80 per tonne by 2014/15.
The Landfill Trading Allowance Scheme introduced in 2005, the Landfill Trading Allowance Scheme allocated allowances to local authorities to meet UK targets under the Landfill Directive.
The value of these allowances has been far lower than the landfill tax for example: £5 per tonne in 2009/2010. However, due to the Landfill Tax being a much better diversion for landfill the scheme is set to be abolished.
Other initiatives have also played a role in the reduction of emissions from the waste industry.
There is more that can still be done and despite UK emissions falling by 7% last year only 0.8% of this can be linked to climate change measures, according to the CCC, in 2011 mild weather was “the biggest single driver” of emissions reductions alongside falling income and rising energy prices.
The Committee warned that the rate of underlying progress is too slow and “only a quarter of that required meet future carbon budgets”.
David Kennedy, CCC chief executive said as the economy recovers it will become increasingly difficult to keep the country on track to meet its carbon budgets unless there is a swift move from planning change to actually delivering it.
“There are some good initiatives in the pipeline, but more is needed to improve the investment climate, and put in place incentives so that people and businesses can act. Key policies require further clarification, and gaps in the policy framework need to be addressed.”
References:
http://www.recyclingwasteworld.co.uk/cgiin/go.pl/article/article.html?uid=92806;type_uid=49
http://hmccc.s3.amazonaws.com/2012%20Progress/CCC_Progress%20Rep%202012_Chapter-7-Waste.pdf
http://hmccc.s3.amazonaws.com/2012%20Progress/1585_CCC_Progress%20Rep%202012_Interactive.pdf
GPT Waste offer a full Waste Review Service free of charge. Find out how they can help your business deal more effectively with your waste: Call 0844 854 5000 or email here.
Subscribe to The Waste Solution blog by Email or subscribe to the RSS feed to receive regular updates.
Her Majesty’s Revenue and Customs (HMRC) have published further clarification on implementing a lower rate for landfill tax which will apply to waste materials.
The ‘Landfill Tax clarification document’ was published on the 4th of July following a guidance note which sparked debates about changes to Landfill Tax regulations.
The guidance note triggered protests across the construction, skip-hire and waste management industries due to the suggestions of fines on trommel or inert materials being raised by 2,640% immediately therefore, without earlier discussion.
Anti-‘skip-tax’ campaigners received a letter from the Treasury last week stating that the HMRC clarification will now ‘result in waste transfer sites and landfill sites reversing their fee increases’.
The clarification document published this week has been drafted accordingly with parties representing the waste management industry and other stakeholders, in order to act as further guidance and clarification to the recent HMRC briefs 15/12 and 18/12 which relate to Landfill Tax.
The latest interim guidance does not replace previous briefs, it deals with specific queries which have arisen since the two original Briefs were issued and acts to clarify matters relating to the acceptance of materials by landfill operators.
The brief has not been solely drafted by the HMRC, the Environmental Services Association, the Environment Agency and the newly formed skip hire and waste transfer industry trade body the United Resource Operators Consortium (UROC) have all had a hand in drafting the advice.
A few areas of the guidance are still to be published in order to ensure that the lower rate is correctly applied, HMRC are working with the industry to provide further guidance on a number of issues, including:
- The definition of “naturally occurring” in Group 1 of the 2011 Order;
- More objective evidential requirements, including those relating to ‘incidental’ amounts of non-qualifying material in a load that is essentially of qualifying material;
- Guidance on the conditions that must be met where lower rated waste, used for the purposes of filling existing or former quarries, qualifies for exemption from Landfill Tax.
The guidance clarified many areas of uncertainty; starting with evidence:
Operators are to keep “sufficient evidence” to validate applying the lower rate of landfill tax, the guidance states:
“To qualify for the lower rate the waste transfer note, which is required to accompany most movements of waste in the UK, must accurately describe the waste so that it can be related to the terms used in the Landfill Tax (Qualifying Material) Order 2011.”
It also stated that the waste transfer note may apply to both individual loads or as a ‘season ticket’ covering a number of loads over a specific time period.
The HMRC recognise that there may be examples where the basic paperwork relating to the waste may not be sufficient to provide landfill site operators with enough reassurance that the lower rate applies, and that this ‘could be where the European Waste Catalogue code relates to material that could be either standard or lower rated’.
Additionally the HMRC are willing to consider other paperwork, including information from waste producers in order to enable landfill site operators to demonstrate that the waste in a particular batch is made up of qualifying material.
The document also aimed to clarify the discrepancy between the definition of inert materials for tax and environmental purposes.
The document stated:
“The requirements relating to the waste transfer note described above are for tax purposes. They in no way override or affect your obligations in relation to the waste transfer note in environmental protection law including the requirement to define the waste source by reference to the European Waste Catalogue codes.
“The only determining factor as to whether waste is lower rated is whether it is listed in the Landfill Tax (Qualifying Material) Order 2011. Whether or not waste is considered to be inert for environmental protection purposes is not relevant to matters of tax liability. Equally, the fact that waste is listed in the Landfill Tax (Qualifying Material) Order 2011 does not mean that the waste is inert for environmental protection purposes.”
Clarification on the liability of loads and consignments was also offered by the document, it states:
“A consignment of waste sent to landfill will be taxed at the lower rate of Landfill Tax when it consists only of materials which are listed in the Schedule to the Landfill Tax (Qualifying Material) Order 2011 (“the 2011 Order”), as long as the conditions set out in column 3 of the Schedule1 and any note to that group of material in the 2011 Order are met.”
It added that the consignment can contain a number of materials from different Groups with the 2011 Order.
This means that the lower tax rate can be applied to ‘trommel fines’ on the condition that those materials or a mix of those materials are contained within the 2011 Order.
The waste transfer document must however contain an accurate record of the composition of the waste, setting out which qualifying materials are contained within the load.
If you are interested in viewing the document, please click here.
Stakeholders will be kept up-to-date on progress relating to the new guidance, and the HMRC will also undertake discussions with a range of stakeholders whilst developing the policy. The HMRC hope to produce a draft before the end of the summer.
References:
http://www.hmrc.gov.uk/briefs/excise-duty/brief2012.htm
http://www.policyconnect.org.uk/apsrg/hmrc-clarifies-changes-landfill-tax
Two changes to the rules governing Landfill Tax have been announced by Her Majesty’s Revenue and Customs sending ‘waves’ throughout the waste industry.
On Friday 18th of May a brief was published by the HMRC, this brief is for landfill site operators and their advisers. It provides further clarification on the Landfill Tax treatment of material used on a landfill site and also the evidence needed when considering whether to apply the lower rate of Landfill Tax to certain wastes.
The brief said that tax should be paid on material used to protect or ‘provide a suitable stable substrate’ for the overlaying layers at the top of a landfill cell.
Waste materials used at the top of landfill cells as well as those used at the bottom have been brought within the scope of landfill tax by the HMRC.
In addition, fines from screening, grit and recycling processes will no longer be eligible for the lower £2.50 rate of landfill tax applied to inert material.
Also, the full rate of £64.00 must be charged per tonne.
These changes are expected to have a big impact on the waste management sector, which previously has not had to shoulder landfill tax costs for this material.
Some within the waste industry have also said that this could even push up prices on recycling and waste disposal.
A landfill tax expert commented:
“The bulletin is causing waves throughout the industry even since Friday, given the two fundamental issues being addressed – namely ‘fluff’ and ‘trommel fines’.”
WRG case brings change
A landmark case in 2008 involving HMRC and Waste Recycling Group has brought upon these changes.
During the case the court ruled, that inert material brought onto site by WRG and used for temporary structures, such as daily landfill cover and site engineering purposes, will not be liable for taxation if it has not been disposed of.
WRG received the tax back from HMRC, which paved the way for another £300million in repayments.
Some operators had apparently tried to claim back tax paid on ‘top fluff layer’ material, according the HMRC.
After a broad discussions with the Environment Agency, the HMRC concluded that this material should be (and always should have been) liable to Landfill Tax. The reason behind this is that the waste material is disposed with the intention of discarding it and the disposal does not constitute a use of that material.
The HMRC said that, where operators have not paid tax for this material and did not seek to do so, they will initiate assessments to ensure all landfill site operators paid the correct amount.
However, it warned:
“The matter will be litigated if necessary. HMRC will enforce these assessments and penalties may also be applicable in such cases.”
The HMRC did note that the material which was used to ‘form the regulation layer’ in landfill sites by providing protection to the cap would constitute a use up until the 1st of September 2009, when the rules were changed to bring specific uses of waste back into the scope of Landfill tax.
It said: “The basis for this conclusion is that such a regulating layer is an engineering specification which would be set out in the specific agreements between the site operator and the EA.”
Fines
Regarding trommel fines, grits and screenings, the HMRC said that materials qualifying for the lower £2.50 –per-tonne rate of landfill tax have been reduced in its Landfill Tax Order 2011 therefore the materials no longer qualify.
Therefore it said that the £64-a-tonne rate of tax would apply because the material, while often motionless is variable in nature.
Materials which have been subject to some form of reuse, recycling or recovery process before the disposal of the residue to landfill are the materials in question.
Also known as waste transfer fines, trommel fines, fines for landfill cover, grit and screenings.
The HMRC explained: “Any residue from treated transfer station waste that is consigned to landfill will be very variable and it will be impossible to determine the origin and exact nature of the source material.”
An HMRC spokesman commented on the changes and denied that they represented a move to claw back money.
He continued to say: “If you lose a tribunal case you have to look at your interpretation of the law. It’s wrong to say we lost so we are trying to claw back the money from elsewhere.”
What was the Response?
The first reaction came from Leslie Heasman, managing director of technical specialists MJCA.
She said that the latest HMRC decisions followed the clarification in 2009 that selected wastes/materials used to provide protection to the drainage blanket and overlying geotextile layer were subject to landfill tax.
Ms Heasman continued to say that:
“There are two separate issues in this latest ruling concerning the protection wastes/material for the cap and the transfer station fines. We now have clarification that the wastes/materials used to provide the foundation for the clay lined cap are not considered by HMRC as engineering material and are subject to landfill tax.”
She also explained that while under a 2011 Order which allowed fines – a category of rocks and soils – to count for tax at the lower rate, the HMRC have now clarified this to say that material had to exactly meet the specified conditions.
Ms Heasman said: “MRFs and transfer stations and other recycling facilities will have to look again at their segregation processes and there could be quite big cost implications.”
Charges
Managing Director of Suffolk-based Bolton Bros, Reuben Bolton, as well as a past president of the Recycling Association said that the believed the new ruling could hit recycling rates and force up charges for the hiring of skips.
He said: “Already today our local landfill is charging us landfill tax for soil and stones we have recovered which we believe to be processed inert material which has been used as engineering cover before.”
“There are not enough outlets for this type of material and it could mean us having to put up charges for skip hire three or fourfold.”
A prediction by Mr Bolton that the recycling rate reported by civic amenity sites and waste transfer stations could fall dramatically, as the material was no longer attracting the lower rate and would therefore not be counted as ‘recycled’ when used as the foundation for the landfill cap, might be very accurate.
References:
http://www.hmrc.gov.uk/briefs/excise-duty/brief1512.htm
GPT Waste offer a full Waste Review Service free of charge. Find out how they can help your business deal more effectively with your waste: Call 01928 571 349 or email here.
Subscribe to The Waste Solution blog by Email or subscribe to the RSS feed to receive regular updates.
The UK has been recognised for their great success in significantly reducing the amount of municipal waste going to landfill since 2002.
The European Commission report does single the UK out, however it warns that the UK still remains well behind Europe’s waste management leaders.
Between 2002 and 2009, the UK cut the amount of waste going to landfill from 464kg per capita to 259kg. There are different routes to reducing the land filling of waste, however, the UK have achieved their drastic reduction mostly through waste prevention, reuse, and separate collection for recycling, composting and anaerobic digestion.
It appears difficult to ‘eliminate land filling’ through tax alone, but the landfill tax introduced in 1996 together with the recycling targets and landfill allowance schemes introduced for local authorities, have been vital factors in boosting the above approaches and discouraging the use of landfill in the UK.
The UK have more than doubled the amount of waste per capita recycled and tripled the amount composted between 2002 and 2009. This has brought the UK in line with EU averages for these activities.
Despite the considerable progress made, the UK still remains well behind Europe’s best performers in reducing waste to landfill.
Belgium, Denmark, Germany, Austria, Sweden and The Netherlands all land filled less than 3% of their municipal waste in 2010, whilst the UK remained at around 48%. The UK aim to reduce to 10% by 2020 and 5% by 2025.
There are nine member states – Bulgaria, Romania, Latvia, Lithuania, Cyprus, Czech Republic, Slovakia, Greece and Malta whom still send more than 75% of waste to landfill. France sends 31%, Italy 51% and Spain 58%.
In the EU, waste management and recycling industries had a turnover of €145 billion in 2008, representing around 2 million jobs. A study published earlier this year concluded that full implementation of existing EU waste legislation would save €72 billion a year across the EU, increase the annual turnover of the European waste management and recycling sector by €42 billion and create over 400,000 jobs by 2020.
In 2014, the Commission will publish a review of progress towards EU waste targets and an assessment of whether further EU initiatives in this area are necessary.
References:
http://ec.europa.eu/environment/waste/pdf/final_report_10042012.pdf
To find out how GPT can help your business deal more effectively with your waste phone 01928 571 349 or email us
GPT Waste offer a full Waste Review Service free of charge. Find out how they can help your business deal more effectively with your waste: Call 01928 571 349 or email here.
Subscribe to The Waste Solution blog by Email or subscribe to the RSS feed to receive regular updates.
Landfill tax is set to increase from £56 per tonne to £64 per tonne from 1 April 2012, an increase of £8 per tonne. This part of the Government’s strategy to address the UK’s ever increasing waste problem, however, with most small businesses in the UK still finding it a challenge to reduce waste and recycle more due to lack of support and services in their local areas, will the increase in cost provide better recycling services for commercial waste?
Every year the UK generates approximately 280 million tonnes of waste. According to the latest figures from Defra “The UK dumps 55 per cent of municipal waste into landfill sites, compared to a 40 per cent average across EU member states and Germany’s one per cent. Under the EU Landfill Directive, member states are required to cut the amount of biodegradable municipal waste they send to landfill to 50 per cent on 1995 levels by 2013 and 35 per cent by 2020.”
Landfill tax is the UK Government’s solution to stand in line with the rest of Europe. Improved waste management and recycling measures for domestic and commercial outlets is also a hot topic on the Government agenda and Defra has identified a potential £23billion saving for businesses if they can recycle more and reduce waste quantities.
Under its Waste Review, launched in 2011, Defra is working with local authorities and the waste agencies to improve recycling services offered to SMEs.
In October 2011 a new recycling charter was launched to help boost recycling rates and tackle the issues smaller businesses face in getting access to waste services, the voluntary Business Waste and Recycling Services Commitment - led by WRAP, aims to bring together smaller businesses that need recycling services, with local councils offering services, and agencies offering best practice waste reduction advice. Seven local authorities have already signed up.
WRAP’s commitment states 12 clear principles:
- Reliable and regular collections;
- Collection services tailored to meet the needs of your customers;
- Clear information about your recycling service;
- Providing access to household waste and recycling centres for businesses;
- Contracts managed by following the principles of best practice;
- Reasonable and clear fees;
- Guidance for businesses on responsibilities for waste management;
- Providing directory of local waste and recycling services;
- Helping businesses to donate unwanted items for reuse or buying quality second-hand products;
- Sensible approaches to enforcement;
- Providing easy ways to gather feedback; and
- A commitment to continuous improvement.
Recycling and waste management must made easier for businesses, more user friendly services and facilities will be offered to help smaller companies effectively manage their waste, whilst maintaining best practice techniques in line with environmental regulations. Based on the April 1st increase in landfill tax, as an example, businesses that produce 500 tonnes of waste a year will see an increase of £4,000/year in their waste management costs if they do not seek to reuse and recycle, even the very small businesses that fill one or two wheelie bins a week could see an increase in their fees of £15-30 per month.
There’s never been a better time to address commercial waste management and recycling plans for your business.
GPT Waste offer a full Waste Review Service free of charge. Find out how they can help your business deal more effectively with your waste: Call 01928 571 349 or email here.
Subscribe to The Waste Solution blog by Email or subscribe to the RSS feed to receive regular updates.
Landfill tax is set to increase from £56 per tonne to £64 per tonne from 1 April 2012, an increase of £8 per tonne. This part of the Government’s strategy to address the UK’s ever increasing waste problem, however, with most small businesses in the UK still finding it a challenge to reduce waste and recycle more due to lack of support and services in their local areas, will the increase in cost provide better recycling services for commercial waste?
Every year the UK generates approximately 280 million tonnes of waste. According to the latest figures from Defra “The UK dumps 55 per cent of municipal waste into landfill sites, compared to a 40 per cent average across EU member states and Germany’s one per cent. Under the EU Landfill Directive, member states are required to cut the amount of biodegradable municipal waste they send to landfill to 50 per cent on 1995 levels by 2013 and 35 per cent by 2020.”
Landfill tax is the UK Government’s solution to stand in line with the rest of Europe. Improved waste management and recycling measures for domestic and commercial outlets is also a hot topic on the Government agenda and Defra has identified a potential £23billion saving for businesses if they can recycle more and reduce waste quantities.
Under its Waste Review, launched in 2011, Defra is working with local authorities and the waste agencies to improve recycling services offered to SMEs.
In October 2011 a new recycling charter was launched to help boost recycling rates and tackle the issues smaller businesses face in getting access to waste services, the voluntary Business Waste and Recycling Services Commitment - led by WRAP, aims to bring together smaller businesses that need recycling services, with local councils offering services, and agencies offering best practice waste reduction advice. Seven local authorities have already signed up.
WRAP’s commitment states 12 clear principles:
- Reliable and regular collections;
- Collection services tailored to meet the needs of your customers;
- Clear information about your recycling service;
- Providing access to household waste and recycling centres for businesses;
- Contracts managed by following the principles of best practice;
- Reasonable and clear fees;
- Guidance for businesses on responsibilities for waste management;
- Providing directory of local waste and recycling services;
- Helping businesses to donate unwanted items for reuse or buying quality second-hand products;
- Sensible approaches to enforcement;
- Providing easy ways to gather feedback; and
- A commitment to continuous improvement.
Recycling and waste management must made easier for businesses, more user friendly services and facilities will be offered to help smaller companies effectively manage their waste, whilst maintaining best practice techniques in line with environmental regulations. Based on the April 1st increase in landfill tax, as an example, businesses that produce 500 tonnes of waste a year will see an increase of £4,000/year in their waste management costs if they do not seek to reuse and recycle, even the very small businesses that fill one or two wheelie bins a week could see an increase in their fees of £15-30 per month.
There’s never been a better time to address commercial waste management and recycling plans for your business.