A government recycling agency will see its budget fall by more than a quarter (28 per cent) over the coming year.
Spending plans announced by the Department for the Environment, Farming and Rural Affairs mean that Wrap's budget will now fall from £48.1 million to £34.7 million for this financial year.
However, the body's chief executive Liz Goodwin believes that the agency can still meet its own targets for recycling.
It claims to have already made efficiency savings of £7.5 million which could cut out some of the budget losses.
In a statement, she said: "We are pulling together an ambitious business plan for the next four years, we're confident it will be sufficiently resourced by our four key funders to deliver the necessary impacts to help the UK become more efficient."
Other Defra agencies facing serious cuts include the Forestry Commission (£42.3 million), Natural England (£191.5 million) and British Waterways (£41.5 million).
Typical Guttridge equipment used in the recycling industry includes; elevators bucket elevators valves
