Draft Business Waste Strategy PDF - london.gov.uk - Greater ...

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30 Mayor of London Making waste work in London The Mayor’s Draft Business Waste Management Strategy 3 Enabling change: an opportunity to make waste services work Introduction 3.1 The productive use of resources can improve business practice, profitability and competitiveness. However, the constraints of competitive markets mean that it is often difficult for companies to act alone. Therefore, the European Union and the UK government are increasingly stimulating change in how businesses use resources and manage waste through legislative and fiscal measures. To remain competitive, London’s businesses need to take action now and reduce their environmental impact. 3.2 Whilst more must be done to encourage all of London’s businesses to become environmentally aware, the Mayor recognises that for many businesses, it may not be a lack of understanding of the urgency or of the opportunities to change, or a lack of willingness that is preventing them from taking action, but a lack of consistent advice, a disparity of information about services, and a lack of suitable services. 3.3 This chapter sets out the economic and legislative drivers for improved environmental management. It details methods to improve the provision and the coordination of information and advice on managing business waste and aims to stimulate the development of appropriate services and waste management facilities for London’s businesses.
Making waste work in London The Mayor’s Draft Business Waste Management Strategy Mayor of London 31 3A Tipping the balance An escalating landfill tax 3.4 A report by the Institute of Public Policy and Research and Green Alliance found that the economics are against recycling; ‘the monetary losses represented by [disposing of waste to landfill] are not high enough or visible enough to make a difference‘ 63 . The government, therefore, has an important enabling role to play, by using policy levers, to create the economic space in which all companies can carry out their operations sustainably. 3.5 The government’s landfill tax has so far failed to change the way the UK handles waste or stimulate the necessary investment in recycling infrastructure, with the majority of London’s waste (excluding construction waste) still being landfilled. The Panel Report of the Early Alterations to the London Plan stated that ’few [participants] see [the landfill tax] as biting quickly enough to generate the commitment and certainty commensurate with meeting the earlier targets in the London Plan’ 64 . 3.6 In the April 2007 Budget Report 65 , the Chancellor announced that the landfill tax will increase annually by £8 per tonne from April 2008 until at least 1 April 2010. This is a significant increase and will mean that the landfill tax will rise from £21 per tonne in 2007 to £48 per tonne by 2010. For businesses that dispose of their waste to landfill, the increasing landfill tax will start to impact heavily and will help drive investment in alternatives to landfill. 3.7 Large businesses will likely have taken action as part of their waste management contract procurement process to reduce their waste costs and introduce recycling systems. Often this will also have been driven by a Corporate Social Responsibility (CSR) agenda. Small businesses produce only small amounts of waste and will therefore be only slightly affected. 3.8 In the short term, it is likely that medium sized businesses, that may not yet have taken action to prevent waste, will be most affected by increasing costs. Higher costs will provide an incentive to reduce waste and make other methods of dealing with waste, such as recycling and advanced waste technologies, more attractive and financially viable. Businesses are already seeing this escalating cost affect their bottom line and have begun to seek out more sustainable waste management options.
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