Local authorities wish to spend more money on recycling projects but cannot because the Government owes them £1.5 billion in landfill tax rebate, according to the Local Government Association.
Speaking to MRW a LGA spokesman said: The Government pledged to give £1.5 billion in landfill tax rebate back to local authorities in the 2003 Budget so that councils could use that money to build recycling plants like anaerobic digestion plants. But the Government has not given that money back to councils. There has been no proof that it has given it back to local authorities.
Without this money we are not going to have the cash to build these plants. It is not clear to us where the money is but we will keep on pushing for it.
A Department for Environment, Food and Rural Affairs spokeswoman said: "The Government acknowledges the cost pressures on local authorities from waste management, including landfill tax, and the challenges they face in the coming years. We have delivered a funding settlement sufficient to tackle these. Efficiency savings will also play an important part."