The Treasury has pledged to top up councils’ funding next year if the income they get through Extended Producer Responsibility (EPR) falls short of the forecasted £1.1bn.
Documents for this year’s Autumn Budget said the Treasury would, if required, provide the top-up cash ‘exceptionally’ for 2025-26.
Further detail will be set out through the Local Government Finance Settlement.
The Local Authority Recycling Advisory Committee (LARAC) said the news was ‘reassuring’ and would give councils confidence planning budgets and delivering waste and recycling services for 2025-26.
But the LARAC said further details were still needed.
The organisation said: ‘Local authorities require timely confirmation of their EPR allocations and need assurance that these fees will cover the actual costs of waste and recycling services.
‘It is also vital to ensure that this funding remains dedicated to waste and recycling services and will not be reallocated or offset by reductions in other government funding for local authorities, including capital funding, in the coming years.’
Budget documents also reaffirmed Labour’s manifesto pledge to end the sale of new cars that rely solely on internal combustion engines by the end of the decade, and chancellor Rachel Reeves pledged to maintain the current fuel duty freeze and 5p cut in rates for a further year.
The Government is set to spend more than £200m in 2025-26 to accelerate the rollout of electric vehicle charging infrastructure, including funding to help councils install on-street charge points across England.
The chancellor also promised an extra £500m for local road maintenance in the next year, bringing spending to almost £1.6bn.
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