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The Spending Review

21 October 2010

In light of Defra’s 29 percent reduction in resource spending and 34 percent reduction in capital spending, it has announced that it will “reprioritise its spending, focusing tax payer’s money on British farming and food production; enhancing the environment and biodiversity; and supporting a green economy resilient to climate change”. It will “prioritise schemes that will be most beneficial to the environment, increasing the Higher Level Stewardship Scheme by 80 percent.”

Included in the plans to manage the reductions is the plan to stop funding for seven waste PFI projects, which will save £3m by 2014/15 “and more in the longer term”. The seven projects are considered no longer needed to meet the 2020 landfill diversion targets. However, Rebecca Eatwell, head of Waste & Resources at communications consultancy PPS Group said: “Defra’s announcement that funding for seven PFI waste projects will be axed will send shock waves through the waste management sector and local government. Given that it is widely felt that meeting landfill diversion targets is going to be a challenge and that investment in new infrastructure is vital, it is hard to see how the Government expects “on reasonable assumptions” that seven projects will no longer be needed to meet EU targets. No doubt the industry will be scrutinising these assumptions as more detail is revealed”. 21 waste PFI projects, already signed, will still receive support.

In response to plans for £200m funding for wind power development and £1bn for a green investment bank, Andy Atkins, Friends of the Earth director, said “significantly more than the £1bn allocated" would be needed for the bank to be effective.

Commenting on the Renewable Heat Incentive he added: “We're pleased that the immediate threat to feed-in tariffs and the Renewable Heat Incentive has been fought off, but the Government must now work hard to mend investor confidence."

Lord Redesdale, chairman of the Anaerobic Digestion (AD) and Biogas Association (ADBA), added: “The Chancellor’s confirmation that the RHI will be available from April 2011 is welcome. Making a commitment of £860m for the RHI is a major step forward. The most effective use of Government incentives is to promote the production of biomethane through anaerobic digestion. “Unlike many other renewable technologies, anaerobic digestion can help meet a wide variety of targets, including renewable energy, climate change and resource preservation. It can also scale up quickly at relatively little cost. “ADBA will work with the Government to ensure RHI levels are set for AD which will deliver the Government’s aims. This will be essential if the UK is to meet its renewable energy and climate change targets for 2020 and 2050.”

 

Gemma Howard