Landfill tax raised to £126.15 from 2025/26

Today’s budget from the chancellor, Jeremy Hunt, has confirmed that the standard rate of landfill tax will rise to £126.15 in 2025/26, while the lower rate will increase to £4.05 per tonne. 

The standard rate of landfill tax is to rise by more than 20% from 2025

The move was confirmed in the chancellor’s spring budget today and has been taken “to better reflect actual RPI and ensure the tax continues to incentivise investment in more sustainable waste management infrastructure”.

The current landfill tax is £103.70 for standard rate and £3.30 for the lower rate.

Today’s 21.6% rise in the standard rate marks a significant jump in the rate and is in stark contract to last year, where it was only raised by £1.60 a tonne despite the RPI rate exceeding 10% (see letsrecycle.com story).

The move is expected to raise an additional £50 million for the Treasury in 2025/26 when it comes into effect and the following two years, before falling to an additional £45 million in 2028/29.

A rise in landfill tax will be welcomed in large parts of the waste sector. The Environmental Services Association urged the chancellor to make the move in an opinion piece for letsrecycle.com yesterday, warning that the failure of landfill tax to keep up with inflation has cost the Treasury £400m over three years.


The impact however will be felt across the sector.

Some local authorities such as Cumbria and Essex still rely on landfill as a disposal route for their waste and the 20% rise in disposal costs will be very unwelcome news.

Essex, however, is in the process of procuring a contractor to move away from landfill.

For the energy from waste sector, the high rise could accelerate the shift away from landfill. The sector has been facing considerably higher operating costs because of inflation, including for staff and materials such as for the cost of ammonia – used in stack cleaning processes – rising significantly.

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