Government’s Decision to Pull £200 Million in WtoE Funding and Increase Landfill Tax

Once, Wellings LTD provided probably the most noticeable Barbie pink skips in the Telford area. But after a period of losses, Weelings LTD went into administration in February of this year. They were reported as saying that they had hoped (of course they had) to find an investor. Then, they hoped to hang on while their administrators found a buyer. Neither of these hopes were realised for Wellings LTD who trade as Pink Skips; administrators failed to find a buyer for the Telford based recycling company and consequently Pink Skips was forced to begin auctioning its 260 items. Many of its larger items, including tractors and lorries are worth up to £75,000.  Auctioneer, Jones Lang LaSalle said that the family based business looked to make about half a million from the auction which will go in some way to pay off their creditors, but was unable to give a figure as to the actual debt family based company, Wellings Ltd need to cover.

Even without enduring a period of losses the pressure placed upon recycling, waste removal and skip hire companies recently has intensified. As reported in Skip Hire Magazine this month, landfill tax has once again risen this month by almost ten pounds; it now costs £72 per tonne and is supposedly to be capped in 2014 at £80 a tonne.

For now, the major implications for Skip Hire companies attempting to avoid the fate of struggling companies such as Welings LTD, is the fact that the current Government have simultaneously raised landfill tax while also cancelling a huge £200 million in funding for three major and upcoming recycling projects as part of the waste-to-energy initiative.

The whole point of the projects now had their plug pulled was to ensure that the UK met its renewable energy and landfill targets as part of the Waste Infrastructure Credits for Private Finance Initiative (PFI) and continued to work towards a greener Britain. None of us want to see an upsurge in fly tipping and illegal waste disposal which leave our communities blighted by rubbish, unclean and increase the vermin population. Yet, with many recycling and skip hire companies already struggling and the last rise in working-age and tax credit benefits failing to reflect the most recent rises in inflation, everyone is struggling.

The Government’s late  decision to cancel the PFI projects which were set to be rolled out in three northern councils – Bradford and Calderdale, Merseyside and York, while landfill tax continues to rise  will consequently have huge implications, not just for the UKs over all renewable energy statistics, but for companies such as our and families such as yours. The Environmental Services Association (ESA) Policy director, Matthew Farrow, has been quoted as saying that the Government’s eleventh hour decision to pull out was “deeply disappointing”.

While the Government’s decision has left the likes of the Chartered Institution of Wastes Management (CIWM) chief executive, Steve Lee, concluding that “The move also serves to highlight the Government’s lack of vision and ambition. It would appear that the aim is for England to meet the bare minimum landfill diversion required by the Landfill Directive, and no more”, skip hire and recycling companies, such as us guys, continue to provide competitive and fair prices and invest in recycling as much as possible. To do this we rely on the support of our customers, who like us, believe it is important to raise environmental awareness and fight for a cleaner and more beautiful Britain.

Visit our Waste Collection & Recycling Edinburgh page to find out how here at Buchannan Skip Hire we intend to continue achieving this and working toward hitting renewable energy targets.

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