Criminals use waste misdescription to pay less tax, but this comes at a huge cost to the environment and human health, says the Environment Agency’s senior adviser Matt Bennett.
Anyone who imports, produces, carries, keeps or treats waste has a legal duty of care when handing it on to give an accurate description of the waste. The waste-transfer or consignment note must include a waste classification code.
The UK’s recycling rates have increased dramatically over the past 10 years or so, as rising landfill tax rates encouraged companies to reuse, recover or recycle waste. The landfill tax system comprises two rates (from 1 April 2021): £3.10 per tonne for lower-rate, less-polluting materials and qualifying fines; and a standard rate of £96.70 per tonne for everything else.
The difference in the rates has never been wider, so it is perhaps easy to understand why some waste producers and contractors are tempted to misdescribe waste to save thousands in tax for each load going to landfill. However, misdescription can result in significant harm to our environment and human health.
A recent Environment Agency (EA) study discovered that 57 per cent of 50 samples of trommel fines (mechanically treated, shredded waste) destined for disposal were misdescribed hazardous waste
A recent Environment Agency (EA) study discovered that 57 per cent of 50 samples of trommel fines (mechanically treated, shredded waste) destined for disposal were misdescribed hazardous waste.
Sites permitted to treat and dispose of trommel fines do not expect to encounter carcinogenic and mutagenic hazardous substances, so don’t have containment and control measures in place to prevent their staff – and local residents – being exposed to hazardous substances.
The majority of waste-transfer station operators are businesses trying to make a living on the right side of the law. Over the past five to 10 years, however, the waste industry has some new players, tempted by an opportunity to make serious money through landfill tax fraud.
The Independent review into serious and organised crime in the waste sector (2018) reported that organised crime groups have infiltrated the waste industry and brought with them a host of additional criminality, including large-scale fraud, intimidation of legitimate competitors, and a disregard of environmental and safety regulations (see bit.ly/CIWMMar21review). Sir James Bevan, EA chief executive, described the increasing threat of waste crime as the ‘new narcotics’.
Waste Misdescription Project
Government responded quickly to this threat and invested £30m to tackle waste crime. Our Waste Misdescription Project is a key part of this. We now have a network of misdescription officers across the country who take a modern, agile approach to waste regulation, targeting waste misdescription across the whole resource chain.
They are cementing and enhancing our working relationship with HMRC, and, together, we are cracking down on fraudsters. We share information and intelligence about suspected misdescription to evade landfill tax through official referrals.
Despite the challenges brought by Covid-19, misdescription officers have been instrumental in providing intelligence and evidence to HMRC, which is taking steps to recover taxes for vital public services.
The legitimate waste industry is a key part of a successful economy and it is essential that waste is managed properly to protect the environment.
Our misdescription project has also identified a wide range of other non-compliances across the country, including hazardous waste being treated on waste exemption, the illicit disposal of waste on construction sites, and the misuse of end-of-waste protocols.
While the project is aimed at preventing and disrupting waste crime, we can also provide advice and guidance to those prepared to work with us. Operators willing to professionalise and modernise can become reputable waste contractors through waste-regulation compliance and WAMITAB training, to play their part in eradicating waste crime.
Our closer relationship with HMRC means data and intelligence flows quickly and the shadier sides of the waste industry can now expect contact from the ‘tax man’. Criminals who have infiltrated the waste industry will begin to find that it is not an easy place to do business.
The legitimate waste industry is a key part of a successful economy and it is essential that waste is managed properly to protect the environment.
The EA is doing its bit to make life tough for waste criminals, but we will need the support of reputable contractors to work with us to ensure the waste industry is respected, through training and high standards of compliance. By working together, we can level up the playing field so reputable contractors can thrive.
This article first appeared in the March / April issue of Circular.
