Hertfordshire County Council has said it is disappointed but not surprised at the loss of £115m in PFI credits for the proposed energy-from-waste plant at Hatfield.
The council says the decision by Defra has no impact on the need for a long-term solution to the county’s waste arisings.
The funding blow came after communities secretary Eric Pickles refused planning permission for the Veolia plant in July. Veolia is in the process of appealing the decision.
Terry Douris, cabinet member for waste management, said: “In light of the secretary of state’s decision not to grant planning permission to Veolia, the decision to remove PFI funding is not a surprise.
“However, it is still hugely disappointing as we were told throughout the process that we made an excellent case for government funding for a new facility in Hertfordshire which would improve our waste disposal infrastructure and reduce costs to taxpayers.”
The county council is considering its next moves in relation to the Veolia contract and waste disposal. They will be discussed by relevant councilors on 4 November before a decision is made by cabinet on 10 November.