The government yesterday unveiled proposed changes to the UK's waste licensing regime intending to make it easier for waste and construction firms to embrace recycling and reuse.

Under the changes, which have been released for consultation, companies will be able to receive environmental permit exemptions for a wider range of so-called low risk recycling activities that do not pollute the environment or pose a risk to human health.

Environment minister Joan Ruddock said that the streamlining of the permitting could save waste handling firms up to £45m over three years, through the removal of unnecessary red tape. "Environmental permits are an essential tool in protecting the environment from the effects of waste, but the system must be fair, simple and proportionate to risk," she added. "The changes we are proposing in the consultation we have published today deliver all those things. "

A spokeswoman for the Environment Agency said that reforms should also help boost recycling levels by removing the regulatory burden for some of the recycling processes that have the least environmental impact.

For example, companies recycling up to 3,000 tonnes of paper, where the paper is stored inside, will be able to receive a permit exemption, as will farmers storing up to 1,000 tonnes of manure or slurry for use in anaerobic digestion. Similarly, businesses producing up to 500 tonnes of aggregate from inert waste for the construction industry will be exempt from environmental permits.

Dr Paul Leinster, acting chief executive of the Environment Agency, urged all firms operating in the waste management sector to look at the proposals and contribute to the consultation, adding that alongside the removal of red tape, some regulations would also be tightened.

"We are encouraging businesses to recover and recycle their waste by offering exemptions for truly low risk operations. Conversely, we are proposing tightening the regulations for those operations that pose a higher risk to the environment," he said. "We need to hear the views of businesses which might be affected before we make changes to the system."