William Eichler 25 April 2025

Carbon tax could cost councils billions, LGA warns

Carbon tax could cost councils billions, LGA warns image
© witsarut sakorn / Shutterstock.com.

A scheme aimed at reducing carbon emissions from the burning of waste could place ‘billions of pounds’ of unavoidable costs on local authorities, council chiefs warn.

The extension of the Emissions Trading Scheme in January 2028 to include emissions from the incineration of waste could push costs onto councils as high as £747m in 2028, according to a new report by the Local Government Association (LGA).

This figure could rise to £1.1bn in 2036, with a total cost over the eight years in between as high as £6.5bn.

The LGA found that the new costs could lead to nearly 80% of councils reducing their overall waste and recycling services and a drop in the range of services provided by household recycling centres in 77% of council areas.

The association’s report also predicts falls in fly-tipping services in 65%, street cleaning and littering in 63%, and street bins provision in 60% of councils.

Cllr Adam Hug, environment spokesperson for the LGA said: ‘Councils want to see a reduction in carbon emissions and support the aims of the scheme, while encouraging recycling efforts, but to succeed we need to see the right incentive in the right places.

‘Current proposals are hitting the wrong target. It will load billions of pounds of extra costs onto councils, who will have little choice but to cut back valued local waste and recycling services and net zero projects, while producers of fossil-based material avoid incentives to reduce what they produce.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Social Worker - Adults Emergency Duty/Approved Mental Health Professional

London Borough of Richmond upon Thames and London Borough of Wandsworth
£46,206 - £55,992
Senior Social Worker / Approved Mental ... Twickenham, Greater London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Care & Support Worker

West Northamptonshire Council
£13.52ph
36 hours per week (12 hours day shifts). Operating on a 4 week rolling rota. The current rota for this position does not include any weekend working. The team will provide quality care for our people, specialising in rehabilitation/reablement and sub-acu Northampton
Recuriter: West Northamptonshire Council

Graduate Trainee Emergency Planning and Resilience Consultant

Essex County Council
£27055.00 - £31829.00 per annum
Are you a Graduate, looking to become part of a crucial, efficient and high achieving team? England, Essex, Chelmsford
Recuriter: Essex County Council

Senior Finance Officer- Transactional Services

Essex County Council
£34121.00 - £40142.00 per annum
Senior Finance Officer- Transactional ServicesFixed Term, Full Time£34,121 up to £40,142 per annumLocation
Recuriter: Essex County Council

Social Worker

Durham County Council
Grade 9 - £35,412 - £39,152 (pre-progression) / Grade 11 - £40,777 - £45,091 (post-progression)
Applications are invited for a Social Worker within the Durham and Chester le Street Locality Team, temporary until 30 September 2026 subject to the r Durham
Recuriter: Durham County Council
Linkedin Banner