Environmental Measures

Landfill tax

Landfill tax is currently charged at the rate of £13 per tonne. The intention is to raise the rate of tax annually by £1 per tonne up to £15 per tonne in 2004/05. Thereafter the intention is the government will consult on a proposal to raise the rate by £3 per tonne in 2005/06 and by at least £3 per tonne in later years on the way to a long-term rate of £35 per tonne.

No changes are being made to the lower rate for inactive waste, which remains at £2 per tonne.

Haulage industry

As previously announced, the government is moving forward on the introduction of a distance-based road-user charge for lorries from 2005 or 2006. The intention is to ensure foreign lorry operators pay their fair share towards the cost of using UK roads. The government published its first progress report in April this year. A second progress report will be published early next year.

Fuel duty

Subject to consultation, the government will introduce a new duty rate for bioethanol, set at 20p lower than the rate for ULSP. This is in recognition of the environmental advantages that this fuel offers.