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Small businesses to benefit from reduced costs for environmental permits

   

NEWS RELEASE

Ref: 149/09
Date: 30 June 2009

Small and medium size businesses will benefit from reduced regulatory charges announced today by Environment Minister Jim Fitzpatrick.

Businesses regulated by local authorities, such as printing works and metal foundries, are required under air pollution regulations to have a permit to operate once they reach certain air quality limits.

Defra has reduced the cost of maintaining these permits by 60 per cent for businesses that have temporarily reduced their operations and fallen below the operating level that requires regulation or ceased production.  This will help businesses while still ensuring the environment is safeguarded.

Announcing the cost reduction, Environment Minister Jim Fitzpatrick said:

“We know re-applying for these permits is an additional cost for businesses – that’s why we have taken action to help small and medium size businesses retain their permits during these difficult economic times. By greatly reducing the cost, businesses will save money by paying less to keep their permit and be able to return to previous production levels without the additional costs of re-applying.”

Typically, small businesses still keep their permits even if they reduce output or stop production for a period of time, to save the financial burden of re-applying for a new permit once production reaches normal levels. Defra is reducing the cost of these permits by 60 per cent for businesses that have reduced output below the levels specified or have put their plant into a ‘mothball’ state.

The cost reduction for permits has some conditions to protect the environment and ensure regulation is still effective. They include:

  • The lower charges only apply if the period of operating at a reduced capacity or mothballing lasts for at least 12 months;
  • The lower cost permits are available for a maximum of 2 years; and
  • Full charges will be reinstated if permit conditions are breached during the period of reduced operation, so that local authorities are funded to carry out the normal level of inspection. 

The lower rates don’t apply to some sectors which are already subject to reduced rates, such as dry cleaners and petrol stations.

Notes to editors

1.   Full details of the reduction in cost for permits and terms and conditions is available at www.defra.gov.uk/environment/ppc/localauth/fees-risk/fees.htm

2.   Under the Environmental Permitting Regulations specified businesses are required to obtain pollution permits from local authorities.  In some cases, only businesses operating above a certain capacity threshold have to be permitted. 

3.   Currently the fee for applying for a permit in most cases is £1561 for standard processes under local authority air pollution regulation.  For the much smaller number for which integrated pollution permits are issued, the cost is £3181. On top of this are the operators’ costs of assembling an application.

4.   The annual air pollution charges which will be cut by 60% are £731, £1098 or £1653, depending whether the particular facility has a low, medium or high risk rating.  Therefore, the reduced rates will be £292, £439 and £661.

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Page published: 30 June 2009