Source · Select Committees · Public Accounts Committee
Eighteenth Report - Government actions to combat waste crime
Public Accounts Committee
HC 33
Published 19 October 2022
Recommendations
2
Accepted
Official data do not capture the true scale and impact of waste crime, and government...
Recommendation
Official data do not capture the true scale and impact of waste crime, and government initiatives do not amount to a convincing overall plan to address this. Waste crime is greatly under-reported, so government and Agency statistics do not capture …
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Government Response Summary
The government agrees and says the Environment Agency is exploring data partnerships, satellite technology, digital waste tracking and notifications of waste to explore fraud and error in waste crime. They will also use the national waste crime survey and prioritise public reports based on intelligence.
HM Treasury
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3
Accepted
Over recent years the landfill tax regime has successfully encouraged recycling but has increased the...
Recommendation
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 …
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Government Response Summary
The government agrees with the recommendation that HMRC should report by the end of the year on how it has improved its approach to landfill tax prosecutions and will provide a response outlining this within the specified time period. The government recognizes that waste crime is an important issue and will consider the structure of the tax and the impacts on waste crime.
HM Treasury
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4
Acknowledged
The current sanctions are not effective in deterring people from committing waste crime.
Recommendation
The current sanctions are not effective in deterring people from committing waste crime. Under the current regime almost anybody can register with the Agency as a waste carrier and present themselves to the public as a legitimate person to take …
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Government Response Summary
The government agrees with the Committee’s recommendation and aims to be more effective by reducing the drivers for waste offending, preventing opportunities for offending and improving deterrents. The agency is now working further upstream to prevent crime and harm before it happens, and the agency approach is more intelligence-led.
HM Treasury
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5
Accepted
Defra is not doing enough to support local authorities to tackle fly-tipping.
Recommendation
Defra is not doing enough to support local authorities to tackle fly-tipping. Fly-tipping has a big impact on the public: there were well over a million recorded incidents in England in 2020–21. Reported fly-tipping in urban areas is high while …
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Government Response Summary
The government states that it has already strengthened local authority enforcement powers, such as providing councils with powers to issue fixed penalty notices and is working with the National Fly-tipping Prevention Group (NFTPG) to develop a fly-tipping toolkit to share best practice on tackling fly-tipping.
HM Treasury
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6
Accepted
We are concerned that the Agency is not doing enough to prevent the illegal export...
Recommendation
We are concerned that the Agency is not doing enough to prevent the illegal export of waste. The Agency estimates that around 14 million tonnes of waste are legitimately exported each year. In the five years to 2020–21, the Agency …
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Government Response Summary
The government agrees and states that the Chief Executive of the Environment Agency sent a response to the committee on November 30th. HMRC is collaborating with the agency to estimate the scale of illegal exports and potential losses.
HM Treasury
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7
Accepted
The digital waste tracking system is still in development after four years despite its implementation...
Recommendation
The digital waste tracking system is still in development after four years despite its implementation being core to combatting waste crime. Recording waste movements digitally rather than on paper is an important initiative from the 2018 Waste and Resources Strategy. …
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Government Response Summary
The government will write to the committee when the IT contract is let (anticipated by the end of 2022) to confirm that it has happened and provide a timeframe for full implementation.
HM Treasury
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8
Accepted
The 2018 Resources and Waste Strategy does not set out a pathway to government’s ultimate...
Recommendation
The 2018 Resources and Waste Strategy does not set out a pathway to government’s ultimate goal of eliminating waste crime by 2043.18 Defra acknowledged that its reporting on progress implementing the strategy and towards this goal has been limited. The …
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Government Response Summary
The government agrees and will provide the committee with its outline plan for achieving the elimination of waste crime by 2043 by October 2022, and provide annual updates on progress against this plan. They will also evaluate the Resources and Waste Strategy to assess the impact of current measures towards eliminating waste crime by 2043.
HM Treasury
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9
Accepted
The 2018 Resources and Waste Strategy acknowledged there were serious gaps in the national data...
Recommendation
The 2018 Resources and Waste Strategy acknowledged there were serious gaps in the national data on waste.21 When we asked how action to combat waste crime could be prioritised without good quality data, Defra told us “There is quite a …
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Government Response Summary
The government agrees and will explore the full range of potential solutions to data weaknesses, including satellite technology, and ensure successful delivery of existing initiatives to improve data. They are working together to improve existing data sets to better capture the extent of crime and fraud, commissioning new surveys and research if necessary.
HM Treasury
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10
Accepted
Defra and the Agency told us about a range of initiatives to improve data, including...
Recommendation
Defra and the Agency told us about a range of initiatives to improve data, including recent consultations on introducing digital waste tracking and reforming the system for registering as a waste carrier, broker or dealer.26 The Agency told us it …
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Government Response Summary
Defra and the agency are working together to improve existing data sets, commissioning new surveys and research if necessary, and will explore a full range of solutions to data weaknesses including satellite technology.
HM Treasury
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11
Accepted
Stakeholders emphasised the need to ensure timely, effective delivery and implementation of the government’s initiatives.
Recommendation
Stakeholders emphasised the need to ensure timely, effective delivery and implementation of the government’s initiatives. The Environmental Services Association wrote that tighter requirements to prevent criminals entering the sector “must be developed and pushed through with urgency”, while ADEPT also …
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Government Response Summary
Defra and the agency are working together to improve existing data sets, commissioning new surveys and research if necessary, and will explore a full range of solutions to data weaknesses including satellite technology.
HM Treasury
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12
Deferred
Waste tracking data is currently collected in multiple systems: some paper-based and some digital, some...
Recommendation
Waste tracking data is currently collected in multiple systems: some paper-based and some digital, some operated by private contractors and some by the government; not all information is collated centrally.34 Since the 2018 Resources and Waste Strategy, the government has …
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Government Response Summary
The government agrees and anticipates the IT contract will be let by the end of 2022. The department will write to inform the Committee when this has happened and will provide a timeframe for full implementation once the supplier is onboarded and a plan is agreed.
HM Treasury
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13
Accepted
Stakeholders who wrote to us were largely positive about digital waste tracking.40 SUEZ emphasised that...
Recommendation
Stakeholders who wrote to us were largely positive about digital waste tracking.40 SUEZ emphasised that new legislation needs to be supported by clear penalties for non-compliance and investment in regulatory staff and systems to enable appropriate monitoring and enforcement.41 Defra …
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Government Response Summary
Defra will write to the committee when the IT contract is let to confirm that it has happened and what the plan is for full implementation, with the contract anticipated to be let by the end of 2022.
HM Treasury
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14
Accepted
Defra told us that an in-house digital delivery team is working on a prototype digital...
Recommendation
Defra told us that an in-house digital delivery team is working on a prototype digital waste tracking system and it has engaged a panel of 1,600 users to help with testing.43 This follows £1.4 million of funding awarded to tech …
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Government Response Summary
Defra will write to the committee when the IT contract for the digital waste tracking system is let, anticipated by the end of 2022, and will provide a timeframe for full implementation once the supplier is onboarded.
HM Treasury
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15
Accepted
HM Revenue and Customs (HMRC) explained that landfill tax was introduced in 1996 to encourage...
Recommendation
HM Revenue and Customs (HMRC) explained that landfill tax was introduced in 1996 to encourage the public and organisations that generate or process waste to move away from using landfill to dispose of waste, and that revenue generation is not …
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Government Response Summary
The government agrees to ensure the current review of landfill tax takes account of the incentives that the tax as currently designed creates to commit waste crime. They will consider the structure of the tax and the impacts of any proposed changes to this on waste crime and on businesses, local authorities and individuals. They will continue to focus on using a suite of wider measures to tackle this issue.
HM Treasury
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16
Accepted
HMRC estimates that the amount of landfill tax due but not collected was £200 million...
Recommendation
HMRC estimates that the amount of landfill tax due but not collected was £200 million in 2019–20. The Environmental Services Association told us that proportionally this is the second highest tax gap across all taxes, which HMRC agreed with.56 We …
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Government Response Summary
The government agrees to ensure the current review of landfill tax takes account of the incentives that the tax as currently designed creates to commit waste crime. They will consider the structure of the tax and the impacts of any proposed changes to this on waste crime and on businesses, local authorities and individuals. They will continue to focus on using a suite of wider measures to tackle this issue.
HM Treasury
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17
Deferred
We heard of recent actions and successes in combatting landfill tax evasion.
Recommendation
We heard of recent actions and successes in combatting landfill tax evasion. HMRC has increased the number of its officials that are working on landfill tax compliance and it assured us that it works with the largest businesses to secure …
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Government Response Summary
HMRC will provide a response outlining how it has improved its approach to landfill tax prosecutions by the end of December 2022.
HM Treasury
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19
Accepted
The Agency told us how current sanctions often have limited deterrent effect.
Recommendation
The Agency told us how current sanctions often have limited deterrent effect. It considers that the only penalty that makes a difference to many waste criminals, particularly one from an organised crime group, is a custodial sentence, but even when …
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Government Response Summary
Defra, the Agency and HMRC should work with relevant bodies within the criminal justice system to develop a plan for making enforcement more effective across the full spectrum of waste crime, including how to speed the process up and consideration of whether the sentencing guidelines need strengthening.
HM Treasury
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20
Accepted
It is widely believed across the waste sector that there has been a steady rise...
Recommendation
It is widely believed across the waste sector that there has been a steady rise in the involvement of organised crime groups over recent years.69 We heard from the Agency and HMRC of the challenges involved in taking such criminals …
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Government Response Summary
Defra, the Agency and HMRC should work with relevant bodies within the criminal justice system to develop a plan for making enforcement more effective across the full spectrum of waste crime, including how to speed the process up and consideration of whether the sentencing guidelines need strengthening.
HM Treasury
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21
Accepted
We queried why the number of successful prosecutions has dropped dramatically over the past 15...
Recommendation
We queried why the number of successful prosecutions has dropped dramatically over the past 15 years and why investigations were taking longer and longer.72 The Agency told us that prosecutions, despite their potential effectiveness at deterring waste crime, are a …
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Government Response Summary
Defra, the Agency and HMRC should work with relevant bodies within the criminal justice system to develop a plan for making enforcement more effective across the full spectrum of waste crime, including how to speed the process up and consideration of whether the sentencing guidelines need strengthening.
HM Treasury
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22
Accepted
Advice and guidance or warning letters are the most common responses for most types of...
Recommendation
Advice and guidance or warning letters are the most common responses for most types of waste crime, and we pushed the witnesses on whether they were using the right balance of enforcement actions.77 The Agency described how it takes a …
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Government Response Summary
The government agrees and will work with relevant bodies within the criminal justice system to develop a plan for making enforcement more effective across the full spectrum of waste crime, including how to speed the process up and consideration of whether the sentencing guidelines need strengthening. They intend to conduct new research into the effectiveness of the current enforcement regime for small scale fly-tipping, anticipated to commence in early 2023.
HM Treasury
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23
Accepted
The Agency estimates that around 14 million tonnes of waste are legitimately exported each year.
Recommendation
The Agency estimates that around 14 million tonnes of waste are legitimately exported each year. The Agency told us that tackling illegal export of waste is “one of our top priorities” and “we are active in trying to stop it”.81 …
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Government Response Summary
The government agrees and the Environment Agency provided a written response to the committee on November 30th. HMRC is also collaborating with the agency to produce an estimate of the scale of illegal exports and the potential losses to the exchequer that considers all available data whilst identifying data gaps.
HM Treasury
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24
Accepted
We asked the Agency about its efforts to stop illegal exports and its performance in...
Recommendation
We asked the Agency about its efforts to stop illegal exports and its performance in doing so. In response, the Agency highlighted the waste it successfully prevents being illegally exported, saying it prevented about 18,000 tonnes last year.84 Over the …
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Government Response Summary
The government agrees and the Environment Agency provided a written response to the committee on November 30th. HMRC is also collaborating with the agency to produce an estimate of the scale of illegal exports and the potential losses to the exchequer that considers all available data whilst identifying data gaps.
HM Treasury
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25
Accepted
The Agency also highlighted its recent achievement in securing fines of £1.5 million against a...
Recommendation
The Agency also highlighted its recent achievement in securing fines of £1.5 million against a large waste company for waste export illegalities.89 The Agency has been keen to publicise this record fine for waste export breaches that the judge called …
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Government Response Summary
The government agrees and the Environment Agency provided a written response to the committee on November 30th. HMRC is also collaborating with the agency to produce an estimate of the scale of illegal exports and the potential losses to the exchequer that considers all available data whilst identifying data gaps.
HM Treasury
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26
Accepted
Local authorities reported 1.1 million incidents of fly-tipping during 2020–21 to Defra.91 However, Defra recognises...
Recommendation
Local authorities reported 1.1 million incidents of fly-tipping during 2020–21 to Defra.91 However, Defra recognises that some local authorities provide incomplete figures, and that coverage of fly-tipping on private sector land is not good enough.92 Other stakeholders made similar points …
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Government Response Summary
Defra should work with local authorities to set a clear national framework for tackling fly-tipping, setting overall expectations and promoting good practice, while allowing local authorities the flexibility to respond to local circumstances with a target implementation date of December 2023.
HM Treasury
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27
Accepted
Defra told us that “Local authorities have the responsibility to deal with fly-tipping” while Defra’s...
Recommendation
Defra told us that “Local authorities have the responsibility to deal with fly-tipping” while Defra’s role is to support authorities and provide tools for carrying out this work. However, Defra’s statutory guidance presents a less straightforward picture of local authority …
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Government Response Summary
The government will work with the National Fly-Tipping Prevention Group (NFTPG) to develop a toolkit for local authorities, with the first part on prosecutions already published and the second part on partnerships expected in early 2023; will also build on existing resources on the NFTPG website.
HM Treasury
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28
Accepted
Defra told us it has invested in the development of apps to make reporting of...
Recommendation
Defra told us it has invested in the development of apps to make reporting of fly- tipping, such as on private land, to local authorities easier.103 Defra said it is developing a fly-tipping toolkit to share best practice, the first …
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Government Response Summary
The government agrees to work with local authorities to set a clear national framework for tackling fly-tipping, setting overall expectations and promoting good practice, while allowing local authorities the flexibility to respond to local circumstances; target implementation date is December 2023. The government has already committed to working with the National Fly-Tipping Prevention Group to update the toolkit, expect to publish the part on setting up effective anti-fly-tipping partnerships in early 2023, and will add further case studies in 2023 after local authority projects.
HM Treasury
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Conclusions (2)
1
Conclusion
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Environment, Food and Rural Affairs (Defra), the Environment Agency (the Agency) and HM Revenue and Customs (HMRC) about government actions to combat waste crime in England.1
Government Response Summary
The government agrees that tackling waste crime is a priority and highlights existing steps like the RWS, but acknowledges that delivery has been slower than planned. They highlight future plans for reforms, consultations, and legislation related to waste management and producer responsibility, with the aim of eliminating waste crime by 2043.
18
Conclusion
Acknowledged
The Agency told us how under the current regime almost anybody can register with it as a waste carrier, broker or dealer and present themselves as a legitimate waste operator. Several organisations submitted evidence to our enquiry that demonstrated how this lax approach enables waste crime. The National Farmers Union …
Government Response Summary
The department is planning to publish the response on exemptions reform (planned for late 2022, implementation by 2024), introduce mandatory digital waste tracking (planned for 2024), reform the waste carriers, brokers and dealers’ regime (planned for 2024), consult on implementing financial provision through waste permitting in the sector (planned for 2024), and bring forward UK-wide legislation that sets out the requirements on producers under extended producer responsibility for packaging (planned for 2023).