Kerry McCarthy – 2015 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Kerry McCarthy on 2015-12-02.

To ask Mr Chancellor of the Exchequer, what assessment he made of the effect on (a) environmental bodies, (b) biodiversity conservation, (c) pollution prevention, (d) waste reduction and (e) public parks of the proposed reduction in the Landfill Communities Fund.

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 the government’s 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. The value of the LCF for 2016-17 will therefore be set at £39.3m. The government is committed to providing the best value for communities, and over the next five years £20m of the additional Landfill Tax revenues resulting from this change will be used by the Environment Agency to address waste crime.

The government wants LCF money to get to communities more quickly. Our reforms will encourage money to be spent in the communities that need it. The LCF will provide £39.3m additional funding for communities in 2016/17 alone and we hope more unspent funds, which this year totalled £118m, will also reach projects as soon as possible.