TAX NEWS - JUNE 2010

UK Tax: 'Bin tax' proposal to be scrapped by UK government

UK government is scrapping "bin tax" plans that would charge households for the amount of rubbish they throw away.

Instead ministers want councils in England to reward people for recycling more waste.

The previous government proposed fitting electronic tags to bins to weigh them, and fine households that threw away too much rubbish.

Critics argued that households would try to get around the tax by fly-tipping or burning more rubbish.


'Expectations exceeded'
 
Communities Secretary Eric Pickles is backing a recycling reward scheme pioneered by Windsor and Maidenhead council in Berkshire.

Households in the borough will be awarded points for the amount they recycle, which can be redeemed at shops, restaurants and leisure centres, or donated to schools.

The government argues that such incentives are more effective than taxes or fines in reducing the amount of rubbish sent to landfill sites.

Windsor and Maidenhead council is inviting more than 60,000 households to join its RecycleBank service from Monday.

Councillor Liam Maxwell said: "Paying the public to recycle works. It increases recycling rates, reduces our environmental impact, reduces council tax and helps local businesses.

"The results of our trial with 6,000 local homes far exceeded our expectations."

Waste and recycling expert Professor Chris Coggins told BBC Radio 4's Today programme he backed incentivising recycling.

"It's much more effective than using a stick to force people to recycle," he said.

But he argued reducing waste was not just the responsibility of householders, but also of manufacturers and retailers.

"A lot more could be done to minimise the packaging," he said.

Pay-as-you-throw tax is being considered in Wales, but there are no plans for it in Scotland and Northern Ireland.