A proposed tax on the carbon emitted from burning waste could cost councils billions over the next decade, according to new analysis.
The previous government put forward plans to expand the UK Emissions Trade Scheme, which puts a market price on carbon emissions in the aviation industry, to the incineration of waste.
The tax would come into force in 2028, costing English councils up to £551m that year, research by the Local Government Association (LGA), County Councils Network (CCN) and District Councils’ Network (DCN) has found.
The annual bill for could rise as high as £837m by 2036, according to the analysis.
Although some costs would be passed on to packaging producers through Extended Producer Responsibility, which is set to be introduced next year, the LGA, CCN and DCN said other industries that create fossil-based material, like in textiles, electricals and furniture, should be responsible for paying the tax.
DCN environment spokesperson Andy Graham said: ‘Taxing councils for the waste we have little option but to incinerate would be a bombshell for the delicately balanced funding of local waste services.
He added: ‘We want to make it easier for our citizens to recycle materials like clothing and medical waste so it doesn’t need to be incinerated.
‘We can only do this through action from producers, who should be incentivised to produce recyclable goods and penalised if they don’t.’
