Landfill Tax Rises – UKSFA Explains

By the UK Sustainable Flooring Alliance

The government has set out a Landfill Tax rise in its latest budget, shelving plans for a single rate.

The change, which will come into force in 2026–27, is part of the government’s drive to reduce pollution and support a more circular economy, while stepping back from more sweeping reforms previously proposed. 

Under the measures announced in the November Budget, the standard rate of Landfill Tax will rise in line with the Retail Prices Index (RPI). The lower rate will also increase – reaching £8.65 per tonne – by the same cash amount as the standard-rate uplift, ensuring the gap between the two rates remains fixed in cash terms.

Officials say this approach maintains the real-terms value of the standard rate and prevents the differential between the two bands from widening over time, preserving incentives to use fewer polluting materials.

In a separate update, the Treasury confirmed it will not proceed with plans to move to a single rate of Landfill Tax by 2030, a proposal consulted on earlier in 2025. The government will also retain the current exemption for quarries with disposal permits. A summary of consultation responses has been published, outlining how feedback shaped these final decisions.

Ministers say the updated structure continues to support environmental goals while avoiding additional burdens on businesses compared with earlier reform options.

www.uk-sfa.com