Budget introduces increase in Landfill Tax rates

12 Mar 2024

The Chancellor's recent Spring Budget introduced a 21% rise in Landfill Tax rates, with the standard rate set to increase to £126.15 in 2025/26.

The Budget documents outlined that the standard Landfill Tax rate will rise to £126.15 per tonne and the lower rate will increase to £4.05 per tonne. The current rates are £102.10 per tonne for the standard rate and £3.25 per tonne for the lower rate.

According to HMRC statistics, Landfill Tax receipts for 2022/23 totalled £626 million, £41 million less than the previous financial year.

Commenting on the rise, Jacob Hayler, Executive Director of the Environmental Services Association (ESA), 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.

'Recent inflation spikes have not been accounted for in determining the rate of Landfill Tax, which has eroded the competitiveness of alternative waste treatment and recycling facilities. [The] Budget corrects this calculation and is very much welcomed by the ESA.'