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.’

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