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landfill tax increase

Landfill Tax Increases To £126.15 From 2025/26

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By the year 2025/26, the standard rate of landfill tax is set to escalate to £126.15, and the lower rate will see an increase to £4.05 per tonne. This was announced in the latest budget announcement by Chancellor Jeremy Hunt, confirmed on March 6th.

Previously, the landfill tax stood at £103.70 for the standard rate and £3.30 for the lower rate. This new adjustment marks a 21.6% surge in the standard rate, a notable leap compared to last year’s modest £1.60 increase per tonne.

Why Are Landfill Taxes Changing?

This decision aims to align more closely with the Retail Price Index (RPI) to continually promote investments in greener, more sustainable waste management solutions. 

Executive Director of the Environmental Services Association (ESA), Jacob Hayler said: 

The Chancellor’s announcement that landfill tax rates will be adjusted to reflect actual RPI will help to ensure waste material does not fall down the hierarchy and will incentivise investment in alternative circular economy infrastructure.”

The Impact Of Landfill Taxes Increasing

This tax hike is poised to expedite the shift towards energy-from-waste solutions. Energy-from-waste solutions refer to processes that convert waste materials into usable forms of energy, including heat, electricity, or fuel, through various treatment methods.

The increase in landfill tax is also designed to encourage businesses and local authorities to adopt more sustainable waste management practices, including recycling. Here’s how the higher landfill tax could influence businesses:

Cost Incentive for Recycling: As the cost of disposing of waste in landfills increases, businesses will find it economically more advantageous to recycle. Recycling can be more cost-effective compared to paying a higher tax for landfill disposal, pushing businesses to invest in or enhance their recycling processes.

Investment in Waste Reduction: Businesses might also invest in technologies and processes that reduce waste production overall. This could include more efficient manufacturing processes and better materials management.

With landfill taxes set to rise by more than 20% from 2025, businesses are faced with a strong motivator to recycle more and manage waste more efficiently. If you are looking for cost-effective recycling services in the UK, get in touch with our team today.

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