Defra unveils plans for brownfield site landfill tax rebate

A four-week call for evidence has been launched on the plans, which the department said could be rolled out as early as this Autumn.

Defra hopes this will help “remove barriers” preventing local authorities building more homes and businesses on underused and derelict land.

Currently, if work was being undertaken on a derelict site and the soil, for example, was found to be contaminated, the full landfill tax rate of £98.60 per tonne would apply.

Under Defra’s plans, local authorities who are charged will be able to claim this back as a grant.

Landfill tax has done a fantastic job  but it’s important it doesn’t act as a barrier

– Lord Benyon, environment minister

Environment minister Lord Benyon said: “This grant will help councils build new homes and businesses on derelict eyesore sites – delivering more homes, and regenerating towns and cities.

“Landfill tax has done a fantastic job in preventing unnecessary waste – but it’s important it doesn’t act as a barrier to regeneration.”

Landfill

By targeting grants in instances where Landfill Tax would otherwise have prevented remediation on commercial terms, Defra explained that any scheme would “seek to be cost-neutral”.

The call for evidence welcomes views on how to ensure a grant scheme would not undermine the waste hierarchy or incentivise illegal dumping. Under plans, applicants would need to demonstrate that use of landfill is reasonably necessary, and steps have been taken to minimise the quantity of waste that will be landfilled.

Exchequer secretary to the treasury Alan Mak added: “Ensuring that communities across England have the tools to transform their local areas is central to our levelling up mission.

“I’m delighted that we’re exploring this bold new scheme which could remove unintended barriers for local authorities who want the best for their communities, whilst protecting our natural environment from contamination.”

‘Barrier’

Landfill tax is widely regarded as being successful, with local authority waste sent to landfill in England falling by 90% since 2000, Defra explained.

It added however that in some cases where remediating contaminated land is not possible without sending waste to landfill, the tax can act as a “significant barrier to redevelopment”.