Landfill tax will increase in line with inflation, documents published as part of the Budget have indicated, but no long-term plans have been announced.
This is because the Government wants first to evaluate the introduction of a testing regime for trommel fines.
A loss on ignition testing regime on fines from waste transfer stations will be rolled out by April 2015. Only fines below a 10% threshold would be considered eligible for the lower rate.
A consultation on the matter will be published later this year.
The Budget document said: “The Government intends to provide further longer term certainty about the future level of landfill tax rates once the consultation process on testing regime has concluded, but in the mean time is committed to ensuring that the rates are not eroded in real terms.”
The announcement followed meetings of representatives of the waste industry and Whitehall officials on the application of the lower rating of landfill tax to trommel fines, with Uroc and the Environmental Services Association (ESA) calling for the introduction of a testing regime.
Jacob Hayler, an economist at ESA, said: “It is disappointing that the Chancellor has failed to take this opportunity to provide the industry with the long term clarity on landfill tax it needs.
“Some solace though is provided by confirmation that an objective testing regime for classifying material as lower rate will be introduced.
“The industry is also pleased to hear that there will be an increase in funding for waste crime enforcement. Hopefully this will go some way towards addressing the estimated £800m annual cost to the UK economy.”