Latest Public Sector News

07.03.14

LGA calls on Osborne to freeze landfill tax

Landfill tax should be frozen immediately as a planned increase is only going to punish hard-pressed families, the Local Government Association (LGA) has claimed.

The LGA is calling on chancellor George Osborne 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 is expected that the tax is set to increase to £80 per tonne in April.

In its budget submission, the LGA has asked for the tax to be frozen at its present rate and, crucially, revenue from the tax to be returned to local taxpayers to be invested in recycling.

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.”

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 £200 million more in 2020 than it would if it was frozen.

Jones added that “a clear indication is needed 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”.

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