A minister has insisted there has been no change in tax policy on waste going to landfill sites - accusing the industry of “misintepreting” official guidance.
Exchequer secretary David Gauke told the House of Commons the waste industry had misunderstood guidance from HM Revenue and Customs on the landfill tax.
Skip operators threatened to disrupt the Jubilee celebrations in protest at what they saw as an overnight tax hike of 2,460 per cent on disposing of some kinds of waste.
But, responding to a question from a Labour MP, Gauke said: “There have not been any changes on skips.
“There was operational guidance HMRC produced, which I understand was misinterpreted by the industry, and HMRC has clarified that. There has been no change in the policy on skips.”
Later, Scunthrope’s Labour MP Nic Dakin asked: “Will the minister engage with the industry as he has engaged with other industries on eligibility of fines residue coming from tromelling equipment for the lower rate?”
Gauke said he believed HMRC was continuing to work with industry and there “was a misinterpretation of the earlier advice and I believe that is in the process of being addressed”.
The waste industry and Government agencies last week agreed to work together to show how residue from recycled construction materials can qualify for the lower rate of landfill tax. It comes after three weeks of confusion and anger about tax rates for sending certain materials to landfill.