News

Gordon Brown has announced a 2p reduction in the rate of corporation tax from April 2008, but tax on small companies will rise by the same amount by 2009.

In today’s Budget, the chancellor also revealed that landfill tax would rise by £8 per tonne each year from 2008 to at least 2010, a move supported by the Environmental Services Association (ESA).

“This signals the government’s commitment to diverting waste away from landfill,” ESA chief executive Dirk Hazell told Packaging News.

“We are also pleased that additional tax revenue from business as a result of this increase will be recycled to business through the reductions in corporation tax, reflecting the ESA’s long-standing policy that environmental taxes should be fiscally neutral to business.”