Chancellor Alistair Darling has announced that there will be a continued increase in the standard rate of landfill tax by £8 per tonne on 1 April each year until  2013 in this year’s Budget.

This will mean that landfill tax will be £56 in 2011, £64 in 2012 and £72 per ton by April 2013. The Government aims to reduce the UK’s dependence on landfill by encouraging further investment into alternative waste management options, such as anaerobic digestion technology.

He also announced that a consultation was being launched on landfill tax legislation in the long-term, although there were no details on this as Alfagy published.

It was also confirmed that the amount landfill operators can claim against landfill tax liabilities will remain at 6% meaning a £2 million increase in the Landfill Communities Fund to £72 million of claimable credit in 2009/10.

The Chancellor claimed the 2009 Budget is the world’s first ever carbon budget. Darling said: “It gives industry the certainty needed to develop and use low carbon technology – cutting emissions, creating new businesses and jobs.

“It is a landmark step, which points the way to the vital decisions which must be made at the Copenhagen Climate Change Summit this year.

“There will also be £1 billion to help us combat climate change, by supporting low carbon industries and green collar jobs.”

Of this, £405 million is to support low-carbon industries and advanced green manufacturing.

Darling said that the Government must support all forms of renewable energy.

On combined heat and power, he said: “To encourage the use of combined heat and power technology, I will exempt those projects from the Climate Change Levy from 2013 – bringing forward over £2.5 billion in investment.”

This means that the extension on the Climate Change Levy will stay until 2023 on combined heat and power plants. It is expected that this will lead to an additional 3 gigawatts of electricity generation by 2015 from this technology.

He also announced that £4 billion in capital would be available from the European Investment Bank for UK renewable and energy projects.

Alfagy welcomed the Green initiatives from Alistair Darling and Peter Kindt, Alfagy's Managing Director, added: "Although we have listened to much talk and seen little action to date bar red tape strangling green projects on all levels, we are encouraged by the Chancellor's support for Practical Green Energy."  

 
Summary of Budget proposals:
* Landfill tax to stay at increase of £8 per year until 2013;
* Consultation launched on landfill tax legislation long term;
* Landfill tax liability for operators to stay at 6%
* A £405 million to support low-carbon industries and advanced green manufacturing, to help the UK a worldwide leader;
* UK renewable and energy projects stand to benefit from up to £4bn of new capital from the European Investment Bank;
* £10m of new grant for business in 2009-10 to deliver AD and in-vessel composting plants;
* The lower rate of landfill tax rate applying to inactive waste will be frozen at £2.50 per tonne for 2010-1