Landfill Tax Reform: Major changes ahead
British Aggregates Association issues call to action to members and the wider construction industry
THE British Aggregates Association (BAA) is alerting members and stakeholders to a significant consultation recently launched by the UK Government regarding reforms to the Landfill Tax, which it says will profoundly impact the mineral and building materials sector.
The consultation opened on 28 April 2025 and is a critical opportunity for industry stakeholders to voice their concerns on proposed changes that could reshape practices in quarry operations, waste disposal, and secondary aggregate production.
The UK Government’s proposals include:
A single landfill tax rate by 2030, phasing out the lower rate entirely
The removal of exemptions for mineral sector practices by April 2027, affecting quarry restoration and the use of stabilizers in dredged materials
The revocation of the Qualifying Fines Regime, which will remove access to the lower tax or exemption rate for fines used for the purposes of restoration starting April 2027
The withdrawal of Landfill Tax relief for materials deposited under a Quarries Restoration Order 1999.
The BAA warns that these changes will lead to increased costs for the disposal of fines from the processing of secondary aggregates, derived from inert waste such as crushed concrete and subsoils. The removal of the lower tax rate is expected to raise gate fees at compliant landfill sites, posing a substantial burden on re-processors and end-users.
According to the BAA, it could diminish the demand for secondary materials, which are essential for promoting a sustainable alternative to primary aggregates and meeting the goals of a sustainable circular economy.
Moreover, the construction sector, which generates sizeable volumes of recyclable materials, could see costs escalate significantly. The Association says the removal of key exemptions may hinder project timelines and compel contractors to adopt less-sustainable practices, creating challenges in site restoration and increased costs for site clearance and muck-away services – particularly for critical brownfield development. The impetus to separate and segregate materials such as soils and stones will no longer be advantageous and there is a danger that all waste will be mixed together with there being one rate for all.
As the Government aims to facilitate the construction of 320,000 new affordable homes, the BAA believes these reforms risk thwarting efforts to address housing shortages. Increased disposal costs will be passed on to buyers, further straining housing affordability in the UK.
While the proposed reforms aim to boost efforts to recycle, reuse and repurpose, the BAA highlights the potential unintended consequences, including:
Raising the costs of legally permitted disposal routes
Making waste crime and the proliferation of more unauthorized tipping sites more likely
Undermining the principles of a circular economy that the Government intends to uphold
The preservation of minerals, soils and stones which should be used for future benefit.
Key dates to be aware of are as follows: 21 July 2025: Deadline for completed objections to the consultation; April 2027: Anticipated removal of the exemptions and fines regime; and 2030: Full implementation of a single tax rate.
In light of these developments, the BAA is urging all members to participate actively in the consultation process and submit their response. It says this is an essential moment for the industry to demonstrate, on mass, its commitment to sustainable practices and advocate for regulations that support responsible operators.
A members’ meeting is scheduled for 3 June, during which members can discuss the consultation and formulate a collective response to the questions raised by the Government consultation.
Mike Phillips, chief executive officer of the BAA, commented: ‘The BAA works tirelessly to ensure the interests of our members are fully represented at the highest level and that their voices are heard. This consultation will have a significant impact on our critical sector. Bringing our members together to consult and formulate an appropriate response is just one of the ways in which the BAA is working to support its members.’
John Carlon, BAA director of planning and permitting, added: ‘The most recent consultation on this subject (in 2023) had 49 responses, which illustrated to HMRC that our sector was not hugely interested, hence the reason for the new consultation. This proposal is a sledgehammer cracking a nut as it is directly related to the misdescription of mixed fines waste as soils and stone. Our sector should not be penalized directly by cost implications imposed when this issue should be enforced by the Environment Agency at materials recycling facilities.’
For further inquiries or information about this issue, contact: Mike Phillips: 07801 664121; or John Carlon: 07739 256461.
