Proposed landfill tax changes could increase waste disposal costs by over 3,000%

​​​​​​​Under current plans, the lower Landfill Tax rate of £4.05 per tonne may be abolished by 2030, and all waste would instead be taxed at the standard rate of £126.15 per tonne

Proposed changes to the Government’s Landfill Tax system could severely impact the construction industry.

Under current plans, the lower Landfill Tax rate of £4.05 per tonne, which applies to inert or “qualifying” materials such as soils, rocks, bricks, and concrete, would be abolished by 2030.

All waste would instead be taxed at the standard rate of £126.15 per tonne, which some have calculated could increase some waste disposal costs by over 3,000%. 

The proposals form part of the Government’s strategy to encourage behavioural change through taxation and move towards a circular economy.

However, industry has expressed strong concern that the reforms could significantly increase the cost of construction projects. 

The Government has also expressed its intention to remove the current disposal permit used by quarries to recover land and require them to apply for a more complex recovery permit. This change and the removal of lower-rated charges for mixed waste could further increase material and disposal costs. 

After industry pushback on the proposed changes, with warnings that these changes could cripple construction businesses, Treasury has confirmed they are reviewing the overhaul.  

The Construction Products Association has written to the Chancellor, asking her to reconsider plans for the proposed Landfill Tax: as supported by our members, the British Aggregates Association, Ceramics UK, and the Mineral Products Association, this would involve cancelling or delaying the announcement and allowing 6-12 months for industry and government to gather better data, understand the unforeseen consequences, and explore more effective solutions including necessary exemptions for adversely affected manufacturing businesses. 

“This could include support to either make industries aware of technology available to recycle, or support industrial bodies to liaise between members, academia, and Government departments to fully understand the barriers and identify recycling solutions for a circular economy.”