Executive Consultation on a proposed shopping Item no: bag levy for London Job title: 6 Principal Environment Policy Officer Report by: Jared Boow Date: 11 September 2007 Contact Officer: Jared Boow Telephone: 020 7934 9951 Summary: This report informs Leaders of the proposed London Councils shopping bag levy consultation, under the proposals for the 10th London Local Authorities Bill, and recommends to Leaders that they approve the intent to consult on this issue, and accept that the technical details of the consultation proposals be approved by the Transport & Environment Committee on 13 September 2007. Recommendations: Leaders are asked to: Email: jared.boow@@londoncouncils.gov.uk 1. Agree that London Councils consult on proposals for a proposed shopping bag levy to be taken forward as part of a raft of measures in the 10th Local Authorities Bill. 2. Agree that the London Councils Transport & Environment Committee approve the details of the shopping bag consultation at their 13 September 2007 meeting. Consultation on a proposed shopping bag levy for London 1. BACKGROUND. 1.1 The Executive agreed in November 2006 that officers would consult with boroughs on new powers to be contained in a 10th London Local Authorities Bill. It was agreed that London th Councils would only proceed with a 10 LLAB in 2007 if a strong list of proposed new powers was identified. 1.2 Having considered a draft list of proposals in April 2007 the Executive then agreed to consult external stakeholders on the proposals that had been collated. Draft proposals were shared with the Government Office for London, all London borough solicitors, the City of London, Transport for London on the transport proposals, and Parliamentary Agents. 1.3 The draft 10th Bill proposals were presented to London Councils’ Leaders Committee on 7 July 2007. Of these proposals, a shopping bag levy or ban was one of those that Leaders agreed to take forward in the proposed Bill. 1.4 Due to the public interest and possible impacts surrounding this issue, it is considered appropriate that London Councils get feedback from the community and businesses prior to formalising its position. There are many issues surrounding a proposed ban or levy, such as the environmental arguments for and against such proposals; the subsequent impact on businesses and consumers from introducing a ban / levy; and the technical issues regarding how such a proposal would be implemented in practice. Some background information on issues surrounding shopping bags are outlined in Appendix 1. 2. SHOPPING BAG CONSULTATION. 2.1 It is therefore proposed that London Councils undertake a consultation exercise on this matter to enable more informed proposals to be taken forward into a Bill (or even as to whether the proposal is altogether viable). 2.2 Due to the timeframes available to London Councils to present the next Bill in Parliament, the deadline for laying a Bill is 27 November 2007. To enable it to be as close to what London Councils and boroughs would like to see taken forward, and for the proposals (whatever they might be) to have some backing, it is therefore essential that we receive feedback to inform our proposals before this date. 2.3 It is therefore proposed that an eight week consultation from 13 September 2007 (the date of the next Transport & Environment Committee) be undertaken, to inform the policy background on the issue and to enable a more informed clause to be drafted for the Bill. 3. LEADERS COMMITTEE AND TRANSPORT & ENVIRONMENT COMMITTEE ROLES. 3.1 It is proposed that Leaders Committee agree to the principle and timing of the consultation, and agree that the Transport & Environment Committee approve the details of the draft consultation document, at their next meeting of 13 September 2007. 4. FINANCIAL IMPLICATIONS. 4.1 There are no financial implications for London Councils from this report. However, carrying forward some of the options proposed (such as levy collection or policing a ban on free shopping bags), will have resource implications for London boroughs. 5. EQUALITIES IMPACT. 5.1 There are no equalities issues resulting from this report. However, an Equalities Impact Assessment will be undertaken to accompany the report to the Transport & Environment Committee on the detail of the consultation. APPENDIX 1: BACKGROUND TO PROPOSED SHOPPING BAG LEVY. Reasons for a shopping bag levy for London. 1. The objective of introducing a ban or levy into the 10th London Local Authorities Bill is to reduce the environmental impact of ‘throw out’ shopping (‘TOS’) bags and stretch the current national targets1 in London. Whether a ban or levy is targeted at just plastic bags or a full range of TOS bags is also a question posed by this consultation. 2. An estimated 13 billion TOS bags are given out by UK retailers annually which equates to approximately 220 bags per person per year2. For London, a conservative figure based on population size would indicate Londoners use at least 1.6 billion bags per year. This is likely to be much higher however, due to the disproportionately large number of tourists that visit London. In addition, the lack of control over the distribution of these bags means far more are used (often one per item per shop) than is necessary. Environmental impacts of different shopping bags. 3. Of the TOS bags given away by retailers, plastic bags in particular are often perceived to cause the worst environmental problems, since whilst they only make up a small percentage of the total litter dropped, they have a nuisance effect on the public realm that is more ‘visible’ than their contribution to the total litter volume would suggest. They also have a disproportionate impact on river and marine wildlife compared with other types of litter. 4. Paper bags and alternatives however can also be damaging to the environment. Paper bags can be up to six times heavier / bulkier and therefore use more fossil fuels for their distribution. The increased demand for paper pulp if plastic bags were banned is also of concern if it is not sourced from sustainably harvested forests. Paper can however be more easily recycled in London, with most residential collections accepting most forms of paper and card (no such residential recycling exists for plastic bags- supermarkets are one of the few places they can be taken to be recycled). Biopolymer-based ‘biodegradable’ bags can also pose problems, as they are generally also be landfilled like plastic bags. The methane and other emissions given off by the anaerobic decomposition of ‘biodegradable’ bags in landfills have implications for climate change (methane as a gas is approximately twenty times more potent than CO2 in terms of its greenhouse heat trapping effect). Biodegradable bags also cause significant problems in terms of ‘contaminating’ plastic bag recycling collections. 5. Finally, there is also a wider concern regarding use of all types of disposable bags in terms of the attitudes and behaviours of the public. A single use ‘throw away mentality’ is at odds with sustainability goals, the realities of London’s landfill constraints, and the order of the Government’s waste hierarchy, which prioritises waste management as follows: reduce reuse recycle/compost recover energy landfill). 6. The majority of plastic bags for example, go straight to the last step in this hierarchy. Whilst research by Somerfield suggested that 68% of Londoners claimed to ‘recycle’ their plastic bags, this is more likely to actually be a single ‘re-use’ only prior to it going to landfill (e.g., use as a home bin liner). 1 On 28 February 2007 a voluntary agreement was announced with UK retailers to reduce the overall environmental impact of carrier bags by 25% by the end of 2008. Available at: http://www.defra.gov.uk/environment/localenv/litter/plasticbags/index.htm. 2 Defra press release 28 Feb 2007, “UK retailers sign up to cut the environmental impact of carrier bags”. Available at: http://www.defra.gov.uk/news/2007/070228a.htm Options available for a levy or ban. 7. There are several options available for pursuing a TOS bag levy in London. consultation document proposes six possible options, which are outlined below: OPTION 1: OPTION 2: OPTION 3: OPTION 4: OPTION 5: OPTION 6: The proposed Status quo- ‘do nothing’- This option retains the current system, which includes a voluntary UK-wide agreement between DEFRA and retailers to reduce the overall environmental impact of carrier bags by 25% by end of 2008. Outright ban- This option involves banning the handing out of SUS bags by retailers in the Greater London area. Council-collected ‘tax-like’ levy- This option involves local authorities collecting a ‘levy’ from retailers arising from the sale of SUS bags (similar to proposals in the Scottish Bill). Retailer-collected levy with environment fund- This option involves retailers collecting a ‘levy’ from the sale of SUS bags and require them to put some of the money from this into an environmental fund of some description. Plastic bags only- Any of the above (ii)-(iv) options, but including only plastic bags. Major retailers only- Any of the above (ii)-(v) options, but focusing only on the major retailers (an annual turnover criteria or similar could be used to define this).
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