A multi-million pound plan aimed at cutting business waste and improving efficiency has been launched by environment minister Elliot Morley.

The £284m Business Resource Efficiency and Waste (BREW) programme ploughs cash generated by the landfill tax back into business support.

The aim is to help businesses manage their waste better and cut the overall amount going to landfill.

Morley said: "A wide range of industries, from manufacturers to retailers, can save literally billions of pounds a year by cutting waste and improving resource efficiency, often with little or no investment.

"By getting involved, businesses of all sizes are set to boost profits while reducing environmental impacts."

Under the BREW scheme businesses can benefit from services such as Defra's Market Transformation Programme, which aims to help businesses "design out" waste at the product development stage, and the National Industrial Symbiosis Programme, which organises the use of one company's waste as another's feedstock.

Savings

It is estimated that British manufacturing could save £2-3bn each year - equivalent to seven per cent of profits - by adopting best practice waste minimisation techniques.

And a wide range of industries beyond manufacturing could save between four per cent and five per cent of turnover, often with little or no investment.

Morley added: "The programme has strong support from the business community. These are organisations that have already proven their worth to business; already they have collectively helped businesses in the UK to achieve over a billion pounds in cost savings.

"Reducing waste has always been a profit opportunity."

Michael Roberts of the CBI said: "Waste minimisation can be a win-win for business, reducing impact of landfill, reducing resource requirement, and saving costs.

"We welcome the BREW initiative launched today and will look forward to participating in the steering group to help ensure the funds are used effectively."