Defra under fire for shock cut to energy-from-waste support

Labour has heavily criticised government over its eleventh-hour withdrawal of £200 million of funds for three energy-from-waste projects, which left their future hanging in the balance.

The local authorities behind the schemes affected are reviewing their viability after the Department for the Environment, Food and Rural Affairs (Defra) decision to scrap promised PFI credits.

Energy minister John Hayes revealed last week he had no forewarning of the move and pledged to take up the matter with his counterparts at Defra. However, his department did not respond to an inquiry into whether he had done so.

Shadow waste minister Gavin Shuker said: “Different parts of government aren’t talking to each other and that is having a massive effect on investor confidence.”

He criticised Defra’s explanation that it could meet landfill reduction targets without the three projects. “[Government] says [energy from waste] is an important contributor to our energy needs, but the mindset is just about scraping over the bar.”

And Shuker hinted that there may be more behind the decision, made just weeks before the Budget announcement. “Questions should be asked about why this money was held back at a time when Defra are chasing their tails to fix things that have gone wrong,” he said.

The councils in North Yorkshire, Bradford and Merseyside hit by the decision were also looking for answers. They have already spent millions on procurement for the EfW plants, expected to have a total capacity of about 65MW.

York Council leader James Alexander wrote to Anne McIntosh MP, urging her to use her role as Environment Committee chair to intervene. He said: “To be told now, with no consultation or warning whatsoever, that government has pulled the plug on this funding gives very little confidence in the decision-making process.”

Bradford Council leader David Green said he would be seeking a meeting with ministers to explain the decision.

Defra said of the decision: “This does not necessarily mean the three projects will stop. That will be a decision for the local authorities concerned. We will continue to provide commercial and technical advice to those projects that continue with their procurement process.”