§ Mr. SheermanTo ask the Chancellor of the Exchequer what plans he has for hypothecated taxes to encourage recycling, with particular reference to the packaging sector. [R] [87000]
§ Ms HewittThe Government currently have no plans to introduce a new tax to encourage recycling.
However, the Department of the Environment, Transport and the Regions has commissioned work on the policy instruments which might be used to correct market failures in the demand for secondary raw materials, and products made from secondary raw materials.
In addition, the Producer Responsibility Obligations (Packaging Waste) Regulations which set targets for recovery and recycling of packaging waste, will almost double the UK's packaging recovery rate (including recycling) to 50 per cent. by 2001.
Finally, in the Budget, 9 March 1999, Official Report, columns 173–90, the Government announced increases in the rate of landfill tax which will provide an incentive for further recycling. To promote further the development of 312W more sustainable waste management, explicit provision will be made for "recycling" in the list of approved projects which can benefit under the landfill tax environmental bodies tax credit scheme.