Suggestions in a report that the Landfill Tax Escalator could hinder future growth in recycling levels have been called scaremongering by the Department for Environment Food and Rural Affairs (Defra).
A Defra spokeswoman rejected the findings from the Landfill Tax report published by the Local Government Association (LGA). She said: We expect recycling to be higher, not lower, as a result of the Landfill Tax Escalator.
"By 2010 the escalator will be reducing the climate change impact of landfill by the equivalent of 800,000 tonnes of CO2 emissions per year. There will be further benefits through resources saved by increased levels of recycling. The landfill tax has been very successful: waste to landfill fell by 18% between 2001 and 2006.
"The LGA story is scaremongering. England is making good progress towards EU landfill targets so there is no reason why local authorities should face financial penalties. The Government has already allocated £1.3bn in PFI credits to waste infrastructure projects, with a total of £2bn available over the next three years."