35/02
17 April 2002
CONSULTATION ON THE LANDFILL TAX CREDITS SCHEME PUBLISHED TODAY
The Financial Secretary to the Treasury, Paul Boateng, and the Environment Minister, Michael Meacher, today launched a consultation on possible changes to the Landfill Tax Credit Scheme (LTCS).
The consultation paper seeks views on the priorities for funding as well as potential funding mechanisms for the scheme, ranging from retaining it in its current form to replacing it with a public spending programme.
Paul Boateng said:
?Consulting on the landfill tax credit scheme allows us to benefit from the views and experiences of the waste industry, environmental groups, local people and other interested stakeholders. The Government is very interested in hearing the views of all who have an interest in this scheme. We are seeking views on what the priorities for funding should be from the revenue currently going through the scheme. These could include sustainable waste management, local community projects or other wider Government objectives. We also want opinions on the best way of delivering these objectives.?
Mr Meacher said:
?The landfill tax credit scheme has funded local environmental projects as well as work on sustainable waste management. This consultation seeks views on how we can enhance the environmental benefits of this funding still further.?
NOTES TO EDITORS
1. The Government stated in the Pre-Budget Report that it would consult environmental bodies, local authorities and other interested parties on the future of the LTCS and that the results would be considered within the context of the 2002 Spending Review (SR2002).
2. Under the Landfill Tax Credit Scheme (LTCS) registered landfill site operators can claim credit of up to 20 per cent of their landfill tax liability for the year to environmental bodies (EBs) approved by ENTRUST, the private sector regulator of the LTCS. They can claim a tax credit worth 90 per cent of that contribution.
3. The scheme encourages partnerships between the landfill operators, their local communities and the voluntary and public sectors. The aim of the scheme is to encourage more sustainable waste management practices, including recycling and to deliver lasting environmental and community benefits.
4. The consultation document ?Possible Changes to the Landfill Tax Credit Scheme? will very shortly be available on the DEFRA website. Printed copies are available from LTCS Consultation Team, DEFRA, 7/F9 Ashdown House, 123 Victoria Street, London SW1E 6DE. E-mail waste.strategy@defra.gsi.gov.uk please add the subject as ?LTCS Consultation?
5. As part of the decision within SR2002, the Government will consider keeping the LTCS in its present form or with minor modifications.
6. The consultation will also look at other alternative mechanisms, such as a public spending programme or enhanced capital allowances.
7. The Government is committed to meeting the challenging targets for waste recycling set out in Waste Strategy 2000.
8. The Government wishes to explore how funds in the LTCS can be better directed towards Government priorities on sustainable waste management.
9. As a first step towards this, the Government has published guidelines that say 65 per cent of landfill tax credits should be allocated to sustainable waste management projects, with at least of third of these to be allocated to recycling projects.
10. The Government is also interested in views on other priorities for funding from the revenue currently going through the LTCS.
11. Media enquiries should be addressed to Matt Conway on 0207 238 5334 at the DEFRA press office or Shazia Ejaz on 0207 270 1755 at the Treasury press office.