Reform of the Landfill Communities Fund

The Landfill Communities Fund was introduced alongside landfill tax in
1996. It allows landfill operators to claim a credit of up to 5.7% (in 2015-16) against their landfill tax liability on 90% of the voluntary contributions they make to environmental bodies to fund community projects. The LCF has provided £1.4 billion in total funds for over 52,500 community projects since 1996.

In this week’s Autumn Statement, the government published their response to the ‘Reform of the Landfill Communities Fund’.

The full published report is available here. The report contains a package of reform measures supported by consultation respondents and designed to simplify the scheme. They will reduce admin burdens and speed up the flow of money to communities.

These include:

  • Removal of the requirement for a contributing third party
  • Limiting record retention to six years
  • Limiting the requirement to monitor assets,
  • Removing the investment and administrative services objects.

The Government has also announced that the size of the fund for 2016/17 will be £39.3m, a diversion rate of 4.2%. An additional £20m is being allocated to the Environment Agency to tackle waste crime over the course of this Parliament.

 

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