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The government should concentrate on reducing packaging waste from business, rather than from householders, according to the House of Lords Science Committee.

In its Waste Reduction report, published yesterday (19 August), the committee also recommended using variable VAT rates to cut consumption of virgin raw materials and encourage the development of sustainable products.

Lord O'Neill, who chaired the sub-committee on waste, said: "There has been an impressive increase in recycling of domestic waste in the last few years, but that only represents a tiny fraction of all waste generated in the UK.

"It is time for the government to move its priorities from household waste to the far greater problem of industrial and commercial waste."

Householders only account for 9% of the UK's waste.

"We would like to see the VAT regime reformed so that products that have a long lifecycle or can be easily and cheaply repaired rather than replaced are made economically more attractive," said O'Neill.

"This would be an important step in turning away from the 'throwaway' consumer culture we currently have."

The committee also wants the government to introduce "true" individual producer responsibility for waste associated with a company's products so that "manufacturers who behave irresponsibly face financial consequences and those who are doing the right thing are supported".

The costs and targets imposed on local authorities should also be amended so that they can offer "more efficient disposal facilities" to business.

The committee said the government should provide more guidance for business, as it expressed its "extreme disappointment" that funding for government agencies such as Envirowise and Wrap had been cut.

"This sends out entirely the wrong message at a time when reducing commercial waste both for economic and commercial reasons is more important than ever," said O'Neill.