A new eco ‘incineration tax’ risks pushing councils to the brink, the LGA has warned.
Emissions from burning waste will be taxed from 2028, as part of efforts to encourage the uptake of greener technologies. Around half of all household waste collected by councils is burned in facilities that produce the same amount of greenhouse gases as around three million homes.
The carbon tax could cost as much as £6.5 billion by 2036, and £747 million in 2028, according to research by the LGA, the County Councils Network and the District Councils’ Network.
The tax, which currently applies to aviation, power and industry, adds around £65 per tonne of carbon produced. Councils could be forced to raise taxes or cut other vital services unless the tax burden is shifted, the LGA has warned.
All three bodies are calling for the taxes to be shifted to the industries that manufacture the materials, such as packaging, textiles and furniture, as councils have no way of reducing the amount of waste they have to collect – while manufacturers can move to more recyclable materials.
LGA Environment Spokesperson Cllr Adam Hug said: “Current proposals risk councils and local taxpayers facing enormous costs, which simultaneously risks the scheme failing to meet its objectives while exposing councils to significant additional financial risk.”