As an emerging industry, recycling has over the years benefited from a range
of funding initiatives aimed at making schemes viable. However, most of these
grant programmes have been small and competition for funds has left many
enterprises with no alternative but to generate their income through trading
alone. The recent increase in the political priority given to sustainable waste
management will see much larger amounts of funding channelled into
recycling, composting and waste awareness over the next ten years. In terms
of how this will affect social enterprises in recycling, some substantial new
funds will be targeted directly at the sector and other funds will reach the
sector indirectly through local authorities and Government. Also, the growth
in social investment, from the public (often through high street banks and
ethical investment funds) and business (through the development of
Corporate Social Responsibility initiatives), will increasingly offer competitively
priced finance to social enterprises excluded from accessing traditional finance.
Local authority funding
Local government is rapidly coming to terms with the reality of mandatory
recycling targets. The targets, which all local authorities in England must
reach by 2003, are ambitious, but further targets, increasing incrementally
until the government's national target of 33% recycling and composting is
passed by 2015, will follow these. The 10% currently achieved had tended
to focus on the materials that are easier to extract, heavier and most valuable
so the more local authorities recycle, the more expensive it is likely to
become to increase rates further.
28
Access to funding and finance
4
Fund
Eligible bodies
Fund size
Life of fund
Neighbourhood Renewal Fund
Local authorities
£900m
2001-04
NOF Transforming Waste
Not for profits and charities
£49.5m
2003-06
DEFRA £140m Recycling Fund
Local authorities
£140m
2002-04
NOF SEED Fund
Not for profits and charities
£12.5m
2002-04
Landfill Tax Credit Scheme (LTCS)
Not for profits and charities
£130m p/a
Indefinite
approx.
Lottery Community Fund
Not for profits and charities
£275m p/a
Indefinite
Environmental Action Fund (EAF)
Not for profits and charities
£4.2m
2002-05
New Deal for Communities (NDC)
Local authorities
£2 billion
2001-11
Esmee Fairbairn Charitable Trust
Not for profits and charities
£25m p/a
Indefinite
Fair Share (Community Fund and NOF) Not for profits and charities
£169m
2002-05