Ian Austin – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Ian Austin on 2016-01-07.

To ask Mr Chancellor of the Exchequer, what representations he has received from (a) landfill operators and (b) environmental bodies on the proposed removal of third party contributions from the Landfill Communities Fund; and whether he plans to change that proposal in response to those representations.

Damian Hinds

Since its introduction in 1996, the Landfill Communities Fund (LCF) has contributed over £1.4bn to community projects in areas affected by a local landfill site and the government acknowledges the positive impact of this funding for communities. However, as the LCF is a tax credit scheme, it reduces tax revenues and we therefore have a responsibility to seek value for money for the taxpayer.

Despite difficult decisions on spending, the government has decided to retain and reform the LCF. Following representations on the issue of contributing third parties, the government softened proposals in this area at Budget 2016, and the requirement for a 10% landfill operator contribution has not been set in legislation. However, the government wants landfill operators to make a greater contribution to the LCF, and the regulator of the scheme, ENTRUST, has published guidance setting out this expectation.