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Meacher's Bag Tax Vetoed By UK Treasury
by Jason Gorringe, Tax-News.com, London

25 October 2002

According to recent reports, UK Chancellor, Gordon Brown has rejected proposals put forward by Environment Minister, Michael Meacher to levy a 10p tax on supermarket shopping bags in order to reduce waste and littering.

The Independent reported yesterday that despite the runaway success of a similar scheme in Ireland, the Treasury has condemned the idea as 'impractical'.

'There are no plans for this. Tax is a matter for the Treasury and the Chancellor is sceptical about this,' an unnamed senior Treasury source told the newspaper on Wednesday.

However, the Chancellor is said to be considering increasing the amount of landfill tax paid by local councils, in order to encourage them to consider recycling as a viable alternative.

According to the Independent, Mr Brown is expected to announce an increase from £13 per tonne of rubbish dumped in landfill sites to £30 in his November pre-budget report.

The additional revenue raised will go towards funding designated environmental schemes, and will not be diverted elsewhere, the newspaper announced.

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