Landfill Tax (Hansard, 31 October 1996)

§ 6. Mr. Bennett
To ask the Chancellor of the Exchequer how much revenue he estimates will accrue from the landfill tax in (a) the current year and (b) the first full year. [313]

§ The Economic Secretary to the Treasury (Mrs. Angela Knight)
The revenue that will accrue from the landfill tax has been estimated at £110 million in the current year and £450 million in the first full year.

§ Mr. Bennett
Given that the aim of the tax is to change people's behaviour rather than to raise money for the Government, what steps are the Government taking to encourage people to recycle items such as tin cans, newspapers and bottles so that the burden does not fall on local authorities and local council tax payers?

§ Mrs. Knight
As the hon. Gentleman will know, the Department of the Environment is very active in that area, but I urge him to put his effort behind recycling. No doubt he, like me, collects newspapers, tin cans and bottles at home. I urge him to take them down to local bottle and paper banks and so do his bit for conservation and recycling and to let local authorities do theirs.

§ Sir Sydney Chapman
Although it would stick in my craw to admit that any tax is a good tax, does my hon. Friend agree that the landfill tax is a good environmental 776 measure? Will she confirm that it will not pose an overall net cost to businesses, because it is balanced by a reduction in the national insurance contributions of employers? In addition, I wish my hon. Friend many happy returns of the day.

§ Mrs. Knight
I thank my hon. Friend for his kind wishes. I have, unfortunately, reached the age at which I would rather go backwards than forwards.
The substance of my hon. Friend's question related to landfill tax and I can assure him that the tax is a key part of the Government's strategy of reducing reliance on landfill and promoting more sustainable alternatives. My hon. Friend is also right to say that the tax will result in a national insurance contribution reduction for businesses, thereby helping industry to create jobs in this country, an endeavour in which we have been successful and will continue to be successful in future.