Select committee: Public Accounts Committee
Recommendation 3
Eighteenth Report - Government actions to combat waste crime
Published 19 Oct 2022
Addressed to HM Treasury
Public Accounts Committee Government actions to combat waste crime All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Over recent years the landfill tax regime has successfully encouraged recycling but has increased the incentives to commit waste crime, and HMRC has been slow to prosecute offenders. Landfill tax, introduced in 1996, has driven down the amount of waste sent to landfill and increased recycling, but has increased the 6 Government actions to combat waste crime incentives to dispose of waste illegally to avoid paying the tax. Across all taxes, the gap between the amount of tax due and the amount collected is estimated to be proportionally one of the highest for landfill tax. HMRC works with landfill site operators to identify and rectify landfill tax non-compliance, primarily through civil sanctions, preventing significant losses. But HMRC finds criminal investigations difficult and time-consuming and has to balance the potential benefits against the impact on other aspects of its work. HMRC has not yet achieved a single successful prosecution for landfill tax evasion. The one investigation where it did try to prosecute the alleged offenders—Operation Nosedive—cost £3.5 million yet ended without going to court because evidential requirements were not met. HMRC was frank that it is still learning how best to investigate such crimes. HMRC is engaging with HM Treasury’s current review of landfill tax. Recommendation: Defra should work with HMT and HMRC to ensure the current review of landfill tax takes account of the incentives that the tax as currently designed creates to commit waste crime. HMRC should report by the end of the year on how it has improved its approach to landfill tax prosecutions.
From: Public Accounts Committee, Eighteenth Report - Government actions to combat waste crime (HC 33), 19 October 2022
Government response
The government responded to the whole report on 14 December 2022 (deadline 19 December 2022).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it agrees with the Committee's recommendations on waste crime, listing most as "implemented" and giving target dates for others.
- On the Resources and Waste Strategy, the government agrees with the recommendation, while noting that "some delivery has been slower than originally planned"; it lists planned reforms including digital waste tracking and reform of the waste carriers, brokers and dealers' regime, both "planned for 2024".
- On landfill tax, the government agrees and says the Landfill Tax Review would consider the structure of the tax and "the impacts of any proposed changes to this on waste crime"; HMRC is to report on its approach to investigations, with a target date of December 2022.
- On sanctions, the government agrees and notes that the Sentencing Council is responsible for sentencing guidance and the courts make "independent decisions"; the department "intends to conduct new research" into enforcement of small scale fly-tipping, "anticipated to commence in early 2023".
- On the digital waste tracking contract, the government agrees; it is "anticipated that the contract will be let by the end of 2022" and the department "will write to inform the Committee" when this happens.