Landfill Tax Receipts Show Further Decline in 2024/25
Newly released figures from HMRC (27 June 2025) confirm that UK landfill tax receipts have dipped once again. For the 2024/25 financial year, revenue from landfill tax reached £486 million – down £3 million (or 1%) from the previous year’s total of £489 million.
This marks another step in a long-term trend of falling landfill tax receipts, a pattern that reflects changing waste behaviours across the country.
Long-Term Trend Reflects Changing Industry Practices
Since its introduction in 1996, the landfill tax has served as a key financial mechanism to discourage landfilling and promote more sustainable waste management. Originally paid by landfill site operators, the cost is ultimately passed on to local authorities and businesses through disposal charges.
While 2021/22 saw a brief increase in landfill tax income – largely attributed to pandemic-related disruption – the overall direction remains downwards. A decade ago, in 2013/14, the Treasury collected £1.189 billion from the tax. Fast-forward to today, and receipts have more than halved.
Positive Signs of Progress – But the Circular Gap Remains
Commenting on the figures, David Gudgeon of Reconomy Connect stated:
“It’s encouraging to see landfill tax receipts continue to decline. It shows more organisations are choosing to recover value from materials, rather than burying them.”
He highlighted that the shift suggests businesses are investing more in reuse and recycling, and successfully diverting more waste from landfill sites.
However, Gudgeon also warned that there is still significant room for progress. The UK’s current circularity rate – the proportion of materials reintroduced into the economy – sits at just 7.5%. That means over 90% of discarded materials fail to find a second life.
A Decade of Decline – and What’s Driving It?
The drop in landfill tax income aligns closely with increased availability of energy-from-waste infrastructure and stronger environmental regulations. In recent years, more businesses have embraced waste minimisation strategies and diverted materials to recovery and recycling.
This downward trend is not only evident in the tax receipts but also in the tonnage data. HMRC’s provisional figures show that overall landfill tonnage has continued to decline in 2024/25, despite small temporary rises in the years immediately following the pandemic.
What’s Next for Businesses?
With new regulatory shifts – including the Simpler Recycling reforms and digital waste tracking on the horizon – the pressure is growing for businesses to treat waste not as an afterthought but as a valuable resource.
Companies that adopt circular principles early and prioritise recovery over disposal will be better placed to:
- reduce cost exposure
- lower carbon impact
- remain compliant with evolving legislation
- support national sustainability goals
Supporting Businesses on the Path to Sustainable Waste Management
At Affordable Waste Management, we’re committed to helping UK businesses stay ahead of regulatory change while managing waste responsibly and efficiently. With over 200 trusted waste partners across the country, we offer:
- Reliable commercial waste collection on flexible schedules
- Transparent pricing with no hidden fees
- Full compliance support through professional documentation and reporting
- Rapid service set-up, often within 24 hours
- Outstanding customer service you can count on
Whether you’re looking to reduce landfill reliance, improve recycling rates, or simplify your waste processes – we’re here to support your transition to smarter, greener waste management.
Ready to get started? Contact our team today for a tailored commercial waste solution that fits your needs and budget.