The Treasury has revealed “clarifications” to the controversial landfill tax changes that will result in “landfill sites reversing their fee increases”, according to a Treasury letter seen by MRW.
The letter said: “Following discussions with the waste industry and others, HMRC will today issue further clarification on this issue to make the liability issues more explicit.
“We have been assured by the industry that the clarification will result in waste transfer sites and landfill sites reversing their fee increases.”
The shock news will fuel accusations of a U-turn, although Her Majesty’s Revenue and Customs remained adamant it was solely a clarification
The Treasury letter, sent by Robin Tasker, private secretary to the economic secretary, Chloe Smith, said the Treasury had worked closely with the Environmental Services Association, “to ensure this message is spread as widely and as quickly as possible” to landfill site operators. (More on the letter on MRW later)
Skip bosses said they are “delighted” with proposed clarifications to the controversial landfill tax changes.
Lead campaigner Richard Hunt, who is chair of the Plant, Waste and Recycling Show, told MRW that following discussions with the Treasury he was “delighted” and “thousands of jobs would be saved”.
Hunt told MRW: “I understand that fines coming out of the trommels will be charged at £2.50. After the guidance came out earlier this month they were being charged at £64.”
The Government faces accusations of a fresh u-turn after climbdowns on taxes on pasties, charitable donations and static caravans.
Prominent Labour MP Tom Watson tweeted: “Treasury have climbed down on the 2500% skip tax hike - withdrawing the guidance issued last Friday. Another u-turn.”
A spokesman for HMRC said: “We are going to be issuing guidance later today to provide further clarification.
“There is no U-turn or policy change it is just to provide further clarification in the event of any misunderstandings.”
All our reports at mrw.co.uk/landfilltax