£2bn to push sustainable waste management

15 October 2007
 
Spending on waste is to rise from £280m in 2007-08 to £700m in 2010-11, with particular provision for more sustainable waste management.

The figures, announced by Alistair Darling in Tuesday’s Comprehensive Spending Review, amount to £2bn over the next three years in the form of PFI credits.

The CSR also says that treated waste from dredging will be exempt from landfill tax from the end of the month, but adds that the Government plans to make an announcement on the exempt status of contaminated waste at Budget 2008.

The National Association of Waste Disposal Officers welcomed the increases. ‘We hope this additional PFI funding will be sufficient to meet the requirements of projects already within the system with the Department for Environment and Rural Affairs, and those due to close during this period,’ said chairman, Paul Borrett.

‘The PFI system is the only form of Government financial support for the provision of the waste facilities required to meet both European and government targets for the diversion of biodegradable municipal waste from landfill,’ he added.

‘The Waste Infrastructure Delivery Programme has indicated that it will support 50% of capital costs for approved schemes – this would probably equate to around 20-30 schemes of average size during this period.’

Borrett said the ‘ramped’ nature of funding made sense, as a number of projects were in the early stages of development and deals might not close until later in this CSR period.

But he also warned that any funding increase needed to be looked at against the backdrop of increasing costs, such as the landfill tax escalator and the targets and aspirations contained within Waste Strategy 2007, the implications of which would only be known in due course as the Government developed its action plan.

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