Landfill tax has achieved its purpose according to the Local Government Association, which says it should now be frozen immediately as a planned increase is only going to punish hard-pressed families.
The LGA is calling on the Chancellor to use this month’s budget to freeze landfill tax at its present rate of £72 and redistribute revenue to local taxpayers, rather than being kept by the Treasury.
It says there is no evidence to suggest an increase in landfill tax will increase recycling levels and the LGA believes landfill tax paid by the commercial sector should be reinvested in new waste technology.
The tax is set to increase to £80 per tonne in April.
Cllr Mike Jones, LGA – “In its present form, landfill tax is punishing taxpayers, who are paying £30 per household every year but seeing no returns”
In its budget submission, the LGA has asked for the tax to be frozen and its present rate and, crucially, revenue from the tax to be returned to local taxpayers to be invested in recycling, rather than being used to bolster the Treasury’s coffers.
The LGA also suggested that the landfill tax receipts from commercial organisations should be reinvested in forward-thinking capital projects.
LGA projections show each household will pay £30 towards landfill tax in 2014/15 and with current planned increases, it would cost taxpayers more than £200m more in 2020 than it would if it was frozen.
Cllr Mike Jones, Chair of the LGA’s environment and housing board, said: “Instead of using the receipts from the tax to boost recycling technologies and reward residents for the gains made in recycling levels, the Treasury has held onto receipts.
“In its present form, landfill tax is punishing taxpayers, who are paying £30 per household every year but seeing no returns. We need a clear indication from the Chancellor that this tax will be frozen at its present rate, with the money raised from it returned to taxpayers and invested in growth.”