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Landfill tax rises to trigger waste spend

Greater investment in facilities for processing commercial and industrial waste is the likely result of chancellor Alistair Darling’s decision to  extend the landfill tax escalator in the Budget, it was claimed this week.

Darling last week extended the escalator – which raises the landfill tax by £8 per tonne each year – from 2010 to 2013.

Grant Thornton associate director and former ICE waste panel chairman Nigel Mattravers said the extension gave vital clarity to private investors.

“The tax escalator is the biggest driver now for waste projects and not knowing where it would go after 2010 created unwelcome uncertainty.”

He added that operators of facilities dealing with commercial and industrial (C&I) properties were most likely invest because of the  increased certainty resulting from the escalator extension.

“Local authorities already have clarity through European Union legislation and its associated drivers which will mean they will be fined if they fail to meet their waste targets,” said Mattravers.

“However, contractors running C&I waste facilities take a hard nosed approach and go for the cheapest option, but that no longer will be landfill. Anyone looking at a investing in C&I facility over the next four years will find it has suddenly become much more affordable.”

“By 2013 the tax will be £72 per tonne and it starts getting to a point where it will flatten out. There is nothing in Europe higher than that and its probably sufficient.”

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