Tessa Munt

No, Kent county council has probably done absolutely nothing. In a moment, I will give my hon. Friend an example of where a council has changed hands—control changed hands and the council did a really brilliant job. There is money to be had and, when councils are up against it trying to provide for adult social care, children’s social care and, frankly, every flipping pothole, it is amazing that they do not get on and tune into this. County councils are not alone in that income discrepancy. It happens in unitary authorities, too: South Gloucestershire council made £500,000 and one of my own councils, North Somerset, made £400,000, but North Lincolnshire made absolutely nothing. Doncaster city council made £300,000, but Coventry city council and Leicester city council made nothing. Another interesting example is that the Labour-led Nottingham city council made an impressive £300,000 from the sale of its aluminium, but the Reform-led Nottinghamshire county council, which serves three times the population of the city itself, made absolutely nothing. Something went awry there. According to the Local Government Association, aluminium cans are worth some £54 million per year to English councils. If the responses I have received to my FOI questions are anything to go by, that seems to be a sizeable underestimate. I therefore want to return to this question of commercial sensitivity. I understand that contracts between councils and waste management companies can contain some commercially sensitive terms and information; however, surely how much income a council earns from the sale of recyclable materials collected from its residents is a matter of public interest and should not be hidden behind exemptions. Residents who sort their recycling every week are entitled to know where it is going, if for no other reason than it encourages them to keep recycling and to recycle more. Secrecy does not help anyone in this arena. The Freedom of Information Act 2000 rightly provides exemptions for genuinely commercially sensitive information, but I trust that the Minister will agree that income from aluminium recycling is hardly a trade secret. It should be a matter of public record. Both councils in the Minister’s constituency replied to my freedom of information requests by stating that they could not identify income from aluminium. However, Hull city council informed its own scrutiny committee that aluminium cans are worth £900 to £1,000 a tonne and that it takes 80% of that value, and East Riding of Yorkshire council told its committee that revenue was £1.6 million. Does the Minister accept that councils that publish this information for a council committee meeting should be more transparent with their residents and the public? Can she assure me that she will offer guidance to ensure that councils always release such information? The Local Government Association’s “wealth from waste” review says that councils across the country receive only around 28% of the total financial value of the materials that they recycle. Waste management companies retain the remaining 72%. That disparity cannot be right. Some councils have refused to accept that financial imbalance and have resorted to going to the courts to receive a fair income for their waste materials, as my hon. Friend the Member for Tunbridge Wells (Mike Martin) referred to in relation to Kent. To give an example, in June 2024, Buckinghamshire council took its waste management company, FCC Environment, to the High Court. The council claimed that the 75%/25% revenue share in favour of the waste management company did not reflect the council’s entitlement. The High Court agreed, and the council was awarded substantial funds for underpayments going back as far as 2016. As the Minister knows, FCC Environment now controls waste management for the councils in her constituency, both of which have extended their contract to 2030. South Ribble borough council is a clear example of action being taken after political change, as was referred to by my hon. Friend the Member for Tunbridge Wells. When Labour took control of South Ribble, the new administration immediately terminated the contract with the waste management company, brought services in-house and saved £178,000 in the first year. Where there is political will, injustices can be corrected. When local government finances are so tight, I find it puzzling that so many councils let this source of extra income slip through their fingers. I wonder how much children’s and adults’ care could be delivered and, as I said earlier, how many potholes could be filled with the extra income highlighted in those examples. The issue is becoming increasingly important to our councils because aluminium is fast replacing plastic and glass across a wide range of drinks and consumer goods. Industries are turning to aluminium more and more. It is lightweight, substantially more recyclable and its quality is not time-sensitive, unlike that of plastic and glass. Many brands also see it as increasing their sustainability credentials, especially among younger consumers. In the last few years, the use of aluminium cans has expanded from a few soft drinks and craft beers into spirits, wine, coffee and water. Last year, Diageo sold more than 80 million cans of Baileys alone, and Marks and Spencer sold 35 million aluminium cans containing a variety of drinks—an increase of about 1 million on the number sold in the two previous years. Even the whisky industry is looking to aluminium to replace its traditional glass, although I am not sure what some hon. Members will think of that. I am sure that the Minister sees my point. Year on year, right across the country, our councils’ residents are purchasing increasing numbers of aluminium cans, our councils are collecting an increasing number for recycling and, at the moment, waste management companies are allowed to sell increasing quantities of that precious resource abroad to the highest bidder. I anticipate that when she replies the Minister will offer the packaging recovery notes system and the coming deposit return scheme as possible solutions. I plan to seek debates on both topics later in the year, and my research tells me that the packaging recovery note system has been plagued by fraudulent scams that open the doors to even more aluminium exports. The Minister will know that the Local Government Association claims that the system does not channel revenue to councils and has called for changes. As for the deposit return scheme, despite the benefits that it may bring the Government are allowing the drinks companies and the supermarkets to manage it, with no regulations whatsoever to restrict them from exporting as many aluminium cans as they want. When my constituents put their cans in their recycling bag or bin they consider that recycling, and in one sense they are correct. It has become very clear from my research that when councils hand over their waste to a private material recovery facility most consider that to be recycling, but that is not the case. All a recovery facility does is divide the waste into different components. Consequently, when the aluminium comes out of such private facilities it has not been recycled; it is nothing more than crushed and broken bits of aluminium. I raise that point because the definition of “recycling” is important. The current confusing definition allows councils to be persuaded, whether honestly or otherwise, that their aluminium is recycled, and recycled in the UK, when too often, after it leaves the recovery facility, waste management companies sell it to the highest bidder abroad. It is important that the Minister and her Government establish some clarity on this issue, so I would like to know the Government’s definition of recycling and its main characteristics, and at what point in the process the Government consider items such as aluminium to be actually recycled. To try to answer those questions for myself I took some of my aluminium to the largest aluminium can recycling centre in the UK: the Novelis reprocessing plant in Warrington. I thank the amazing Allan Sweeney and his team at Novelis for showing me around the plant. I saw how crushed and broken aluminium cans are cleaned, melted down and cast into brand-new 27-tonne ingots—they are huge. I also saw the almost-completed £75 million expansion of Novelis’s facilities, which is jointly funded by the Government. Once operational it will allow all the UK’s used cans to be recycled in the UK. Each year in Warrington 8 billion cans are reprocessed, ready to be rolled into new aluminium cans and bottles. For me the question was answered right there in Warrington: aluminium is not recycled until it is reprocessed ready to be made into a new product; up to that point it is just scrap metal. That definition would resonate with my constituents and with all those who take the time to recycle their aluminium. I will return to how that all impacts the Government’s critical minerals strategy and their circular economy objectives. I believe that there is no question but that it does impact them, and in a manner that makes a mockery of the Government’s intentions. I will give the Minister three very clear examples. First, the critical minerals strategy categorises aluminium as a national strategic asset, central to our defence, infrastructure, manufacturing base, circular economy and net-zero targets. It says that the UK must secure access to such critical minerals; the amount of scrap aluminium exported abroad each year seriously undermines that. Secondly, one of the critical minerals strategy’s primary pillars is reducing exposure to volatile global markets, yet waste management companies are given free rein by the Government to export unlimited quantities of aluminium scrap into the very volatile markets that the critical minerals strategy says must be avoided. Thirdly, circularity is central to the critical minerals strategy. As I have already pointed out, aluminium is infinitely recyclable and reprocessing uses 95% less energy than primary production. Exporting scrap aluminium breaks the circular loop that the critical minerals strategy says is essential for resilience. All the research that my team and I have conducted so far this year has led me to conclude that many of our councils have a good understanding of the commodity value of the aluminium that they collect from the public. They manage it well through prudent procurement agreements and secure real value for money for their residents, but far too many fail to take the management of their waste seriously. They sign contracts that simply hand everything over to waste management companies, which then profit massively from aluminium and other materials’ value. Far too many believe that UK recycling policies are being adhered to, when in reality, the truth is shrouded from them and their aluminium is being sold abroad to the highest bidder, lining the pockets of the waste management companies. I am well aware that the responsibility for this issue lies not with central Government but with the leadership at local government level. Might the Prime Minister’s devolution initiative help here? I urge the Minister and her Government to act now to stop scrap aluminium from councils all over the UK being exported by waste management companies. What those companies are doing undermines all the Government’s initiatives around the critical minerals strategy and circular economy initiatives. Aluminium, that vital commodity to our country, should not be sent for recycling or reprocessing abroad while there is capacity to do so here in the UK. In conclusion, I ask the Minister to give me some reassurance that the Government will act on this matter before our national interests are further harmed.