Councils across England could soon receive grants to refund the costs of Landfill Tax when it prevents derelict sites from being developed.

The Government is seeking evidence on the introduction of new funding to help stop Landfill Tax from acting as a barrier to redeveloping brownfield and contaminated land.

The call for evidence will ensure any grant scheme would not undermine the waste hierarchy or incentivise illegal dumping.

Environment minister, Lord Benyon, said: 'This grant will help councils build new homes and businesses on derelict eyesore sites – delivering more homes, and regenerating towns and cities.

'Landfill tax has done a fantastic job in preventing unnecessary waste – but it's important it doesn't act as a barrier to regeneration.'

If approved, the scheme could open from this Autumn. Applicants must show any scheme would seek to be cost-neutral and steps have already been taken to minimise the quantity of waste that will be landfilled.