A committee of MPs has criticised chancellor Gordon Brown for failing to provide an environment tax agenda, despite a 1997 manifesto pledge.

In its inquiry into the pre-Budget report, the Environmental Audit Select Committee says that few green tax measures included were new, while attempts to focus the tax burden more on environmentally damaging areas of the economy had failed.

Forum Response: Environmental Services Association

"In very broad terms, the annual cost of treating the municipal waste stream needs at least to double to about £3 billion if the UK is to comply with its existing legal duties and the National Waste Strategies and if we are to achieve mid-range EU standards of performance.

"ESA has anticipated that the government may wish substantially to raise the Landfill Tax. We understand the arguments that this could help to close the gap between the cost of landfill and that of other options. We also understand that this would align the UK more closely with comparable EU member states.

"We would be surprised if the government changed its declared increases in Landfill Tax in the period before 2004 as this would undermine the credibility of all other statements of medium term fiscal intent. It would also be pointless to raise the Landfill Tax before this time as it is not possible to build new infrastructure to manage waste diverted from landfill within this timeframe.

"However, from 2004, we recognise that the government might wish to raise the Landfill Tax by, for example, about £5 per tonne each year for 4 years, and we see considerable merit in the intention to raise the Landfill Tax in this way being announced in the forthcoming Budget so that our industry and local authorities can then plan accordingly.

"An easy way rapidly to increase to more realistic levels the quantity of resources going to management of the municipal waste stream-without in any way jeopardising social justice or removing the control of local authorities over local standards of waste management-is to introduce direct charging.

"In ESA's view, it is essential that introduction of direct charging is accompanied by the ability of waste managers to appoint agents (such as local councils to whom they are contracted) to collect waste management fees on their behalf."

Forum Response: Biffa

A spokesman for Biffa told ePolitix.com: "There is a need to develop a consensus on target aspirations for environmental performance by defined dates on a sectoral basis and identify a double dividend approach for those sectors which will enable them to achieve these targets with minimum inflationary and market impacts for society. We believe there is a need to confirm the total GDP impact of these measures for the UK.

"The Treasury has a key role to play in developing agreed kick-start mechanisms in the portfolio of sticks and carrots needed to shift societal behaviour in these areas, ranging from outright bans and regulations through to subsidies, traded pollution permits and direct customer price pass thoughts. It could do more to clarify which 'mix' applies to which sectors and when.

"There needs to be comfort that this process will be developed on a round-table process, especially with interested parties such as Defra, the DTI, the Office of Fair Trading and the Monopolies Commission, if the public are to be reassured on the transparency of future price, direct or indirect tax increases. At the end of the day it is the consumer who pays."