Challenge 2014 update

The 2011 Budget announced that future decisions on the value of the LCF will take into account the success of Environmental Bodies (EBs) in reducing the level of unspent funds they hold.

The Government issued a challenge to EBs to reduce the level of unspent funds by 15% from the 2009/10 baseline by 31 March 2012 with a corresponding increase in project expenditure.

In the 2012 Budget, the Government issued a challenge to EBs to reduce their level of unspent funds by a further 10% from the March 2010 base line by 31 March 2013, with a corresponding increase in project expenditure.

In the 2013 Budget, whilst increasing the landfill tax diversion rate from 5.6% to 6.8%, the Government announced that future decisions on the diversion rate will depend on the success of the sector in reducing the level of unspent funds, the second target of 10% being extended to March 2014.

In the 2014 Budget, the landfill tax diversion rate was reduced by 25% from 6.8% to 5.1%.  The Government announced that the £7.1m saving made would be used to address waste crime.

In September 2014, the Government announced the result of the challenge.  They said:

"New figures show that overall environmental bodies have not met the Government's challenge to reduce their unspent funds by 25% by April 2014, with funds only being reduced by 17%.

The Government will now consider different options in consultation with landfill site operators, environmental bodies and their regulatory body, ENTRUST to improve the flow of funding to communities."