What the 2025 landfill tax increase means for your business
From 1st April 2025, the UK government is set to introduce an increase to the landfill tax, which will mark one of the biggest jumps in landfill tax since its inception in 1996. With the new rates expected to impact businesses across multiple sectors, it’s essential that your company understands the changes and begins to improve its waste management strategies. We delve into everything you need to know about the increase in landfill tax for 2025 below.
What is the 2025 landfill tax increase?
The landfill tax is an environmental tax per tonne that is issued to all businesses and waste providers for waste disposed of in landfill sites. This government incentive was implemented back in 1996 to discourage waste from being sent to landfill. This is because as organic waste decomposes, landfills generate the harmful greenhouse gas known as methane, which is responsible for around 30% of the current rise in global temperature.
The current rates of landfill tax are:
- Standard landfill tax rate – £103.70 per tonne
- Lower landfill tax rate (for inert waste including certain soils and rocks) – £3.30 per tonne
As of 1st April 2025, the new landfill tax rates will be:
- Standard rate – £126.15 per tonne
- Lower rate – £4.50 per tonne
Why is landfill tax increasing in 2025?
This significant rise in landfill tax is part of the government’s ongoing efforts to align with the UK’s net zero goals. Along with the simpler recycling legislation, which aims to improve recycling rates for businesses and households, this increase will reduce the environmental impact of landfill waste and prompt businesses to adopt more sustainable waste management practices.
The new tax rate aims to:
- Prioritise recycling and reuse by encouraging businesses to divert waste from landfill and opt for more sustainable options such as recycling and composting
- Support the circular economy by driving businesses to think about their waste as a resource that can be repurposed rather than disposed of
- Reduce environmental damage such as soil and waste contamination, as well as harmful emissions from landfill waste decomposition
- Encourage businesses to explore alternative waste treatment methods such as waste-to-energy solutions and anaerobic digestion
How can your business prepare for the landfill tax increase?
1) Conduct a waste audit
Start by conducting a waste audit to understand what types of waste your business generates and how much of it is currently going to landfill. Identifying your current waste streams will help you determine where improvements can be made to your waste management strategies.
2) Improve your recycling rates
Recycling is a cost-effective and eco-friendly alternative to landfill. Ensure that your business has appropriately labelled recycling bins and that all staff are trained on which materials can be recycled. We offer a range of recycling and recovery bins that can help support your recycling efforts – check out our guide on wheelie bins for businesses for more information.
3) Consider a zero waste approach
Working toward a zero waste business model can help you avoid landfill costs altogether. This approach prioritises the 5 Rs of waste management: refuse, reduce, reuse, repurpose and recycle. Discover more in our blog on becoming a zero waste business in 2025.
4) Work with a responsible waste management provider
Partnering with a reliable waste management company like McCarthy Marland ensures that your waste is handled in the most sustainable and cost-effective way possible. By offering a comprehensive range of waste collection, recycling, and disposal services, we can help your business reduce its reliance on landfill.
Tailored waste solutions to help you navigate the 2025 landfill tax increase
With landfill tax rates set to rise significantly in April 2025, now is the time to take action. By implementing eco-friendly waste management practices, your business can not only reduce landfill costs but also contribute to a more sustainable future.
Our friendly team at McCarthy Marland are committed to helping your business navigate these changes with ease. We offer a wide range of commercial waste management services, including wheeled bin hire, skip hire, and roll-on roll-off (RoRo) hire, that are specifically designed to support your waste reduction goals.
For more advice on preparing for the landfill tax increase, speak to one of our team members today.