Lancaster fire: Council faces landfill tax bill over waste site

Lancashire Fire and Rescue Service said the blaze was deep-seated in the large quantities of compacted waste

The financial cost currently faced by a council for emergency clearance work at a waste site fire could be exacerbated by a landfill tax bill.

Lancaster City Council leader Phillip Black also warned that flare-ups at the former Supaskips waste recycling site are a potential risk.

The blaze at the former Supaskips site began in December, lasting three weeks.

HM Revenue & Customs said there was no mechanism to waive the landfill tax.

The council first spent £262,000 removing and demolishing buildings for better fire crew access when the fire initially broke out.

It then decided a further £650,000 would be needed, bringing the total to about £900,000, but Mr Black said it would take an additional £450,000 to "finish the job".

'Ongoing talks'

About half of the money the council has spent on the project so far has gone to pay landfill tax, Mr Black said.

It is unclear who will ultimately foot the financial bill with talks ongoing between different authorities.

The site owners are in administration, Lancaster City Council has said.

The Environment Agency is investigating activities at the site, including previous operations and waste storage.

Mr Black laid-out his various concerns in a report.

He stated: "It is worth remembering the city council has no specific duty to manage this emergency or spend our reserves dealing with it. But despite this we stepped up to the plate for the sake of residents, businesses and to protect the environment.

Lancaster City Council cannot avoid landfill tax on clearing the site

"It has meant contributing just shy of £1m to help clear the waste but to finish the job will cost another £450,000.

He said it could add up to 13% of available allocated reserves, or "seven per cent of our entire net revenue budget for 2023/24".

Mr Black also said: "Unfortunately, a significant amount of waste remains and deep-seated pockets of heat mean that potential flare-ups are likely for some time."

He added: "The council continues to work with partners in other agencies and continues to try to seek financial support to finish the work of clearing the site."

Councillor Phillip Black says there could be more fires on the site

"Frustratingly, HM Revenue & Customs has informed us that there is no mechanism by which they can waive the landfill tax we have to pay, which accounts for more than half the cost of the action taken to clear the site.

"Crucially we continue to await a response from government ministers about what financial support they are able to offer. Rather than leaving the council to carry the financial can by itself, the question is, do we now say that we've done enough? That it's time for another partner to dig deep and put their hands in their pockets? 

At January's full council meeting, various councillors paid tribute to the many people involved in the emergency.