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Circular economy is key to avoiding 3015% landfill tax rise: NFB

Posted: Friday, August 8th, 2025

The National Federation of Builders (NFB) is urging builders to take the circular economy seriously because the Government’s proposed changes to the Landfill Taxation system could be industry-breaking.

To promote a circular economy, the Government’s Landfill Tax consultation aims to abolish the lower Landfill Tax rate of £4.05 and replace it with the standard rate, which is currently £126.15. This change is proposed to take effect in 2030.

By 2027, it will also remove the disposal permit that quarries use to recover land, which will now need to apply for a recovery permit.

A permit which isn’t always easy to get, and if that continues, may increase the cost of materials because quarries incur higher running costs.

2027 will also be the date at which lower-rated for mixed waste (lower-rated and a small amount of standard-rated) will cease to exist, and all mixed waste will be charged at the standard rate.

The Government appears committed to using behavioural change through taxation as a strategy. While constructive discussions have taken place with HM Treasury about whether 2030 is achievable and what is needed to establish a circular economy and tackle waste crime, NFB is encouraging SMEs to start swiftly updating their site waste management plans.

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