Landfill Tax hike ‘will incentivise investment’ in recycling

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Waste management firms have welcomed a Landfill Tax hike revealed in this week’s Budget, saying it will boost the circular economy.

Chancellor Jeremy Hunt announced that the levy paid to dispose of residual waste in the ground would soar by almost a quarter over the next year or so.

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Currently set at £102.10 per tonne, Landfill Tax will rise to £126.15 per tonne in April next year.

The Budget documents said this would “better reflect actual retail prices index (RPI) [inflation] and ensure the tax continues to incentivise investment in more sustainable waste management infrastructure”.

Jacob Hyler, executive director of industry body the Environmental Services Association, 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.”

He added: “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. Today’s Budget corrects this calculation and is very much welcomed by the Environmental Services Association.”

However, the ESA said other measures were needed to keep driving material up the waste hierarchy.

“An escalator on the plastic packaging tax, and perhaps a widening of this tax to other forms of packaging, remains a crucial policy instrument for future Budgets,” said Hyler.