Councils join national call on landfull tax return

12 March 2008

Herefordshire Council and Redcar and Cleveland Council have joined a national call from more than 80 authorities for landfill tax to be returned to local authorities so it can be invested in refuse and recycling facilities.

The demand comes in a letter to Hilary Benn, secretary of state for environment, food and rural affairs, and says this year’s dramatic increase in the landfill tax could see almost £70 per household going to Whitehall over the next three years.

Council leaders from all parts of the country, including George Dunning, of Redcar and Cleveland Council, have signed a letter from chairman of the Local Government Association (LGA), Sir Simon Milton, which says council taxpayers could be hit with a £1.5bn bill, unless money raised through landfill tax is returned to councils as promised.

The letter calls on the Government to honour the pledge to return money raised through landfill tax to local authorities.

‘Despite repeated requests, the Government has yet to demonstrate in a clear and transparent way how, over the next three years, this money is being given back to local authorities to keep council tax down and build the waste and recycling facilities the country needs,’ the letter stated.

Sir Simon also warned: ‘Landfill tax is designed to encourage people to throw away less, but at present, it is unfairly penalising hard-pressed councils which need all the extra money from the tax returned, to enable them to invest in offering local people better recycling facilities. ‘As leaders of councils of all political types and all parts of the country, we call on you to honour your pledge to return the money raised through landfill tax to local authorities.’

Dunning added: ‘We continue to improve our recycling targets, which are now up to 40%. However, our government must continue to support Beacon local authorities, such as Redcar and Cleveland, and not send out what appear to be negative messages on the landfill tax.’

In the 2003 pre-Budget report, the Government promised landfill tax increases from 2005-2006 would be revenue-neutral to local authorities. Until now, money raised from landfill tax has been returned to councils and has helped boost recycling rates in Herefordshire to 30%.

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