HM Treasury: Budget 2016: the Chancellor has presented his Budget for 2016. Points of interest for waste authorities and waste managers include:

  • the Government will consult on consult on new rules requiring local authorities to be transparent about the cost of the in-house services they provide, and whether there could be savings from using competitive external providers; 
  • legislation on reduction of statutory plastic packaging recycling targets for 2016 and 2017 and new recycling targets for glass and plastic packaging for 2018, 2019 and 2020. The existing plastic target will be reduced to 49% for 2016 and then increased by 2% each year to 2020, to 57%. For glass, the existing target of 77% will be maintained until 2017 and then increased by 1% each year to 2020, to 80%; 
  • the standard and lower rates of Landfill Tax will increase in line with RPI, rounded to the nearest 5p, from 1 April 2017 and again from 1 April 2018;
  • HMRC will consult later this year on the definition of a taxable landfill disposal, with the intention of changing the definition in Finance Bill 2017;.
  • the Aggregates Levy rate will remain frozen at £2 per tonne in 2016-17; the Government will consult on a new exemption from the Aggregates Levy for aggregate which is an unavoidable by-product of laying pipes for utilities, with a view to legislating in Finance Bill 2017;
  • increase in HMRC compliance activity to tackle tax evasion and non-compliance across the waste supply chain, with additional funding for HMRC to increase its compliance activity in this area;
  • reforms to the Landfill Communities Fund, including simplification of record-keeping requirements and changes to the scheme’s objectives. The scheme’s regulator, ENTRUST, will publish guidance setting out the requirement for landfill operators to make a greater contribution to the fund from April 2016.

(16 March 2016)

National Assembly for Wales: Tax Collection and Management (Wales) Bill: this Bill has been passed by the National Assembly and is awaiting Royal Assent. The Bill puts in place the legal framework necessary for the collection and management of the proposed new devolved taxes, Land Transaction Tax and Landfill Disposals Tax, when these are introduced from April 2018. The Bill is the first of three bills that together will establish devolved tax arrangements in Wales; it will be followed by legislation for the new devolved Welsh taxes. (8 March 2016)

The Welsh Government issued a consultation on the proposed new Landfill Disposals Tax in February 2015. This will be a tax on disposals to landfill made in Wales, replacing the Landfill Tax.