Potential Implications of Higher Landfill Tax - The Circular Economy

The scale of the increase, which has been linked to the Retail Prices Index (RPI), has been controversial. There are concerns over the cost implications for key sectors such as construction, manufacturing and industry and that it will directly impact on building and production costs, which would no doubt be passed on. Local Authority household disposal spending may also rise, as waste management companies will be forced to seek more eco-friendly disposal and recycling solutions, many of which may also be more expensive.  

However, the environmental benefits are obvious. Reduced emissions, improved carbon footprint, increased recycling, greener practices. The reasons behind the tax increase are clear. Meanwhile, the debate continues regarding the knock-on effects for the wider economy and residents.

Whatever the viewpoint, there is already a shift towards waste minimisation, recovery and recycling, some of which is resulting in innovative product development, not least re-use of plastics, thereby boosting the circular economy. Despite the difficult balancing act, there is now likely to be an increased impetus towards developing more cost-effective alternatives, although this may differ regionally.

Inert Waste – consultation continues

The consultation on landfill tax reform, specifically focusing on inert waste, aims to transition to a single landfill tax rate by 2030, potentially removing the lower rate for inert waste. Key exemptions, like those for quarry restoration and the qualifying fines regime, are also proposed for removal/tightening.

The WasteVyne has run a report which highlights that around 21.9 million tonnes of inert materials were received by landfills in England in 2023 – that represents nearly a third of the inert codes total received across all types of facility. Whilst the ambition is to move this material away from landfill, the consultation throws up many perspectives, including if we actually have sufficient capacity.