§ Mr. Bill O'BrienTo ask the Chancellor of the Exchequer what plans he has to amend the regulations governing landfill tax credits to ensure that local schemes funded by landfill tax are transparent and that value for money is obtained; and if he will make a statement. [139585]
§ Mr. TimmsThe Chancellor announced in this year's pre-Budget Report that the Government will further explore how the landfill tax credit scheme can be reformed, to ensure that the resources can be better used to increase recycling rates, particularly of household waste. We will be considering a range of options for reform in the run-up to Budget 2001.
§ Mr. Bill O'BrienTo ask the Chancellor of the Exchequer if he will make a statement on the impact of landfill tax credits on council tax precepts. [139586]
§ Mr. TimmsAny impact of landfill tax credits on council tax precepts should be minimal. Operators of landfill sites who are registered for landfill tax may claim tax credits for contributions that they make to support environmental projects. Under the landfill tax environmental bodies credit scheme, it is the landfill site operator who determines which projects to support. Although local authorities may be involved in such projects, they should have no direct control over the expenditure of environmental bodies and therefore will be unable to assume that funding will be forthcoming for the purposes of setting their budgets. It is possible, however, that a local authority may decide not to incur discretionary expenditure on an environmental project if it learns that that project has received alternative funding through an environmental body funded by landfill tax credits.