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The Waste and Resources Action Programme (Wrap), which is charged with tackling household packaging waste, faces a 25% cut in its budget next year, its chief executive told staff today (11 December).

Liz Goodwin said the Department for Environment, Food and Rural Affairs' "very tight" settlement would lead to a cut in its funding for Wrap, putting jobs at risk. With contributions from the devolved administrations, Wrap's total budget for next year would be £55m-£60m, she said.

Although there was likely to be a "net reduction" in jobs, Goodwin said Wrap would probably create some new posts to reflect new business priorities.

She also urged staff to "look constantly for ways to do our jobs more efficiently, not just to make savings but to improve the quality of our delivery".

Wrap's key priorities for 2008 are collections, recyclates, food waste and the management of mixed plastics. Last month, it launched a major consumer-facing campaign on tackling food waste.

Goodwin said legislation prevented her from providing any more details at this stage about specific business areas affected by the budget cut.

However, she invited staff to take part in a consultation and said she would put forward proposals to representatives at a meeting in early January.

The consultation will last for 31 days and Wrap should be able to "clarify the budget and programmes for next year" by early February.

Goodwin said she had considered delaying the announcement until after Christmas, but she wanted to be "as open with you as I can be".

She also said Defra recognised that Wrap made a "real difference" and was "highly valued by ministers for the quality of its advice and influence it could bring to bear".