York will be forced to pay more than £225,000 extra in Landfill Tax this year, despite reducing the amount of waste sent to landfill.
Figures discussed today at the Executive Member for Neighbourhood Services Decision Session show that waste sent to landfill is 7% down on last year. The fall follows a 5% fall in 2008/09.
Despite the reduction in the amount of waste sent to landfill, the city still faces an increasing Landfill Tax bill thanks to the decision by government to increase Landfill Tax by £8 per tonne in April, a move set to be replicated in April 2010.
Liberal Democrat Executive Member for Neighbourhood Services, Councillor Ann Reid said the fall in the amount of waste sent to landfill was partly down to increased recycling but also that the total amount of waste produced had fallen.
She said, "York has done very well in increasing recycling from 12% in 2003 to over 45% this year but it also seems that people are getting the message about reducing the amount of waste they produce in the first place."
"This is partly down to companies making welcome reductions in the amount of packaging they use, but it is also a result of people being more aware of what they buy and the implications for the environment."
Councillor Reid said the figures highlighted the failure of the Landfill Tax system. She said, "The Landfill Tax system is supposed to act as an incentive for local authorities to cut down on their use of landfill sites, yet there is no reward for success. The government keeps increasing the cost of Landfill Tax so rather than paying less thanks to higher recycling rates, we still end up paying more."
Councillor Reid called on the Government to reward successful Councils by exempting them from the increase in Landfill Tax. She said, "The Government can create an incentive to reduce the amount of waste sent to landfill by making it possible for Councils to reduce their Landfill Tax bill."
"The Landfill Tax system is failing to deliver on it's promises. Councils were told that landfill taxes would be redistributed in the form of grants for improving recycling, yet since 1996 York has paid over £15m in tax and received only £2.5m in grants."
"Landfill Tax has become another stealth tax on residents that the government are using to prop up their accounts. The continual increases in Landfill Tax would seem to show that in many ways the government can't afford for Councils to be successful in reducing the waste sent to landfill, they need the revenue too much."
The table below shows Landfill Tax paid by City of York Council and the grants received to help recycling.
Financial Year
Land Fill Tax Paid £
Grants Received £
1996/1997
294,490
0
1997/1998
695,800
0
1998/1999
693,000
0
1999/2000
948,400
0
2000/2001
1,041,150
0
2001/2002
1,170,240
0
2002/2003
1,288,950
129,900
2003/2004
1,330,280
0
2004/2005
1,444,350
427,700
2005/2006
1,567,800
259,100
2006/2007
1,478,190
562,200
2007/2008
1,568,640
490,000
2008/2009
1,930,560
359,839
Total
15,451,850
2,576,889
Paul Carter
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