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SunEnviro managing director Mat Stewart has welcomed news of a 21% increase in landfill tax from 2025/26.
Standard Landfill Tax is set to climb from £103.70 per tonne to £126.15 per tonne next year in an attempt to steer the nation towards more sustainable waste management practices. The lower Landfill Tax rate will also see a rise from £3.30 per tonne to £4.05 per tonne.
The environmental services boss says the Chancellor’s Spring Budget has set the stage for a greener future.
Why the increase in Landfill Tax?
The new levy increase is part of the government’s commitment to curb reliance on landfill disposal, promote recycling, and foster the adoption of circular economy principles.
Landfill Tax rose slightly in April 2024 at a rate of just over 1.5%, but the huge jump coming in 2025 is set to shake up the waste management industry. The revised Landfill Tax rates, which align with the Retail Price Index (RPI), are expected to inject an additional £50 million into the public purse annually.
SunEnviro’s Mat lauds the budget’s forward-thinking approach.
He said, “This isn’t just a tax increase; it’s a clarion call for innovation in our industry. By aligning the Landfill Tax with real-world economic indicators, the government is lighting a fire under the waste sector, urging us to leapfrog towards more sustainable, technologically driven waste management solutions.
“It’s a challenge we’re eager to embrace, proving that environmental responsibility and business growth can go hand in hand.”
MORE: UK Landfill Tax: A simple guide to waste management savings
Impact across the board
This tax hike is anticipated to ripple across various sectors, significantly affecting waste management costs.
For example, local authorities, already under financial strain, may find this adjustment challenging, prompting a reevaluation of waste disposal strategies. Meanwhile, the construction sector, typically a heavy contributor to landfill waste, will face a notable increase in disposal costs.
However, it presents opportunities for energy from waste (EfW) facilities. With landfill becoming a less economically viable option, EfW plants are expected to gain traction as a preferred alternative, benefiting from a potential uptick in operational charges.
MORE: SunSkips gets a tour of Suffolk’s energy-from-waste plant
Steering the wheel of change
This strategy is not only about financial adjustments but about laying the groundwork for a sustainable future, where waste is viewed not as a problem but as a resource.
As the UK steers towards this new horizon, the increase in Landfill Tax is a wake up call for businesses, local authorities, and communities to collaborate and embrace more eco-friendly waste management practices.
Mat added, “With every challenge comes an opportunity, and this tax increase presents a golden chance for us to redefine waste management. It’s time to think outside the bin, and to work together in shaping a world where waste becomes a stepping stone for creating energy and new materials.”
SunSkips is passionate about pushing the boundaries of sustainable waste management. The group will be sending waste directly to landfill for the last time this year thanks to an innovative construction recycling facility opening in the summer.
