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Landfill tax rise to net £100m more

REMEDIATION firms will have to pay out another £100 million in landfill tax this year after Chancellor Gordon Brown raised the rate in last week's Budget.

From April 1 the standard rate of landfill tax increases from £15 to £18 a tonne - with projected revenues rising from £600 million in 2004-05 to £700 million next year.

Firms eventually face a bill of £35 a tonne for waste disposals at licensed landfill sites.

Industry lobbyists are pushing for brownfield developments to be exempted from the tax.

Craig Sillars, managing director of remediation firm Churngold, said: 'Developments are getting tarred with the landfill tax brush at the moment when the Government is encouraging people to build on brownfield sites.'

A Treasury spokesman said: 'Customs and Excise keep a close eye on new taxes as an ongoing policy and they have found the tax is fulfilling its intention.'

He said the tax take would stabilise at £700 million in 2006-07 as the industry moved to other methods of waste disposal.