Defra statement - Budget 2003
9 April 2003
Today's Budget from the Chancellor Gordon Brown consolidates a number of key initiatives in support of Defra's policy responsibilities and sets out a challenging agenda for future progress. It confirms fiscal support across the range of the Department's sustainable development programme, working for a better quality of life.
Key announcements include:
- Confirmation of the increase in the Landfill Tax to £35 per
tonne in the medium to long term and the establishment of a new local
authority Waste Management Performance Fund in England.
- Reform of the Landfill Tax Credit Scheme such that £100 million
in 2003/04 and £110 million in 2004/05 and 2005/06 is redirected
to public spending on a new sustainable waste delivery programme.
- Extension of the Government's Green Technology Challenge scheme to
cover further energy efficiency measures and water-efficient technologies.
- Commitment to early consultation on proposals for market based instruments,
in support of the Government's policy on domestic energy efficiency
as set out in the recent Energy White Paper.
- Transport duty rate changes in support of less polluting and lower
carbon fuel and vehicle technologies.
- Confirmation of the reduction in the duty on bio ethanol by 20 pence
per litre starting in 2005 and a commitment to consider additional methods
of support for an emerging UK industry base for ligno cellulosic based
fuels.
- Extension of Capital Gains tax business asset taper relief to unincorporated
businesses, which includes the majority of rural businesses.
- Extension of research and development tax credits to more small firms which will benefit rural businesses.
Today's announcements should be seen against the background of significant
Exchequer support for Defra objectives announced in other contexts since
November's Pre-Budget report, for example the £450 million support
package to maintain the rural post office network, and the Government's
Sustainable Food and Farming Strategy which included plans for a new entry-level
agri-environment scheme to maximise farming's contribution to the environment.
The Government has also published its Energy White Paper and the Prime
Minister launched the latest annual report on UK progress towards sustainable
development.
Page published: 9 April 2003