A consultation has been launched by Defra to investigate how WRAP may be funded in future.
While acknowledging WRAP’s successes in developing the recycling market, the consultation says that further savings need to be made across Government.
Despite its budget from Defra being cut from £56 million in 2009/10 to £26 million as part of the 2010 Spending Review, Defra said that “We anticipate that further reductions in Defra’s funding for WRAP will be necessary as a contribution to those wider savings.”
The review is only looking at the English contribution via Defra to WRAP’s funding and does not include the more than 50 per cent of its funding that comes from administrations in Scotland, Wales and Northern Ireland. However, these devolved administrations are being engaged in the review by Defra.
In the consultation document, Defra said: “As a responsible partner, we are keen to ensure that we fully understand the impact that any further reduction in Defra funding might have on WRAP, and with that in mind we are involving WRAP closely in this review.
“We are particularly keen to support WRAP in making the transition to whatever future business model it chooses.”
Defra also stressed that priorities for the future for WRAP must include a couple of key assumptions. These are:
- That Government should only intervene where it is absolutely necessary i.e. where there is a true market failure
- That where Government does intervene it must ensure best value for taxpayers’ money.
The consultation is open until 24 May. More information is available here