Landfill Tax Fraud

David Linden Excerpts

Thursday 12th January 2023 Commons Chamber

[The Exchequer Secretary to the Treasury (James Cartlidge)]

It is a real privilege to respond to today’s Backbench Business debate. I congratulate the right hon. Member for North Durham (Mr Jones) and my right hon. Friend the Member for Haltemprice and Howden (Mr Davis) on calling this debate. I have only responded to one of these Backbench Business debates before, and it was when I was a Justice Minister, and, sure enough, one of the proponents was my right hon. Friend. It was on the subject of strategic lawsuits against public participation, so he does cover a diverse range of issues, but that is a credit to him.

The shadow Minister, my regional neighbour, referred to the fact that the right hon. Member for North Durham had called himself an anorak on this subject. I agree with the shadow Minister that, what the right hon. Gentleman has shown—as have the hon. Member for Blaydon (Liz Twist) and my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell)—was a clear passion for this subject. He raised some very serious and important constituency matters.

I want to assure all hon. and right hon. Members that we do agree that landfill tax fraud and wider waste crime is an important concern in itself, but it also has a distortive effect on legitimate waste management businesses and the waste management sector, causes significant environmental damage and seriously impacts on local communities. Every single Member who has spoken today—with an emphasis, it should be said, on quality rather than quantity of colleagues participating—has clearly emphasised, above all else, the impact on their communities. I totally understand and sympathise with that point.

I will just canter through the history, as the shadow Minister did, because it is very important. We had a long established habit of landfilling our waste. As recently as the 1990s, more than 90% of household waste went to landfill, with only 5% of household waste being recycled. As he said, a landfill tax was introduced in October 1996 to help remedy that. The idea was to encourage the diversion of waste away from landfill and towards more environmentally friendly waste management options, such as recycling, reuse and recovery.

Having introduced the tax, it is also true, as the right hon. Member for North Durham pointed out, that successive Governments have applied escalators to that standard rate. These escalators increased the rate but also provided lead-in time and certainty that was welcomed by the sector, which was looking to invest in more sustainable waste management options. The tax has been widely recognised as being successful in contributing to the fall in landfill waste.

Where are we now? Since 2000, local authority waste sent to landfill in England has fallen by 90% and household recycling rates are now at around 45%. The tax collected in the last financial year was £667 million, which is in many ways a successful tax. Obviously, I am speaking primarily from the Exchequer’s point of view, but we have achieved a substantial policy goal there. We should think of a parallel universe in which we did not achieve that reduction in landfill—imagine how many square miles of our wonderful countryside would now be taken up by landfill. It is a striking thought.

[David Linden (Glasgow East) (SNP)]

I do not want to intrude too much on this debate, but the Minister is right when he talks about the importance of moving more towards recycling and less to landfill. Will he join me in calling on Glasgow City Council to reject the planning application from Patersons of Greenoakhill, a landfill site that blights communities in Mount Vernon, Carmyle, Baillieston and Broomhouse?

[James Cartlidge]

It is fair to say that the hon. Gentleman has got that on the record, but he will appreciate that I am not going to comment—it is devolved, but beyond that it is a planning matter and not a matter for the Exchequer. He has got it on the record, though.

It is true that landfill tax has inevitably been relatively difficult to enforce, and non-compliance is high. The right hon. Member for North Durham is absolutely right that this is partly due to increases in the standard rate but, obviously, as the tax has increased, it has become more effective at incentivising disposal other than landfill. In parallel, there has inevitably been an increase in abuse and non-compliance.