Wrap has decreased the budget as Defra has squeezed the cost because of the governmental plans. This business move was taekn to cut down the expenditure and maintain a healthy profit margin.
Wrap has decreased its budget by 5% and is expected to further reduce after Defra has squeezed its costs as part of the government’s plans to slash £6.2bn from the public spending.
Around £2.4m of the budget of this waste organisation for 2010-11 has been slashed by the main funder Defra. Therefore, the overall budget of the organisation is currently £95.9m for this year. The organisation behind a range of packaging reduction schemes, including the Courtauld Commitment and Glassrite has expressed to undertake some more reductions.
The organisation has asserted that no programmes would be squeezed or redundancies made as a result of the reduction. The organisation has chalked out a plan to decrease expenditure in advertising and marketing on its low-priority projects. Defra has aimed to freeze the spending by £162m.
Since the election of Tory-Lib Dem coalition, the budget cut for Wrap was in the air. However, the funding for the year 2010 from Welsh, Northern Irish and Scottish governments was not affected.