Rise in Landfill Tax: A £1.60 Increase Expected in 2024 UK
14th July 2023
The Landfill Tax rates for 2024 are set to rise, but by a smaller margin than initially anticipated, surprising many who had predicted a potential increase of up to 10%.
As per the HM Treasury, the standard rate will be £103.70 starting from April 2024, representing a modest £1.60 increment from the rate enforced since April 2023. In the same vein, the lower rate of landfill tax, currently at £3.25, will experience a nominal five-pence rise to reach £3.30 in April 2024.
The anticipation for a more significant increase stemmed from the fact that the annual April adjustments are typically linked to the retail price index (RPI). However, calculations by the Office for Budget Responsibility indicate a projected RPI rate of approximately 1.6% for 2024, following a decline to around 4.9% later this year.
Landfill Tax Rates for 2024
Below are the landfill tax rates for 2024, extracted from the Treasury documents accompanying the recent Budget announcement (source HM Treasury):
| Material sent to landfill | From 1 April 2022 | From 1 April 2023 | From 1 April 2024 |
| Coverage | England and Northern Ireland | England and Northern Ireland | England and Northern Ireland |
| Standard rated (per tonne) | £98.60 | £102.10 | £103.70 |
| Lower rated (per tonne) | £3.15 | £3.25 | £3.30 |
Consequences of the Increment
The relatively minor rise in landfill tax rates for 2024 is expected to have several consequences:
- For local authorities that still rely on landfill as a waste management solution, such as those in Cumbria and Essex, the modest increase will help control waste-related expenditures.
- However, for the energy-from-waste sector, this slight rise might pose challenges as gate fees increase in comparison. Inflation and rising operating costs, including expenses for materials such as ammonia used in stack cleaning processes, will need to be addressed.
- Moreover, the limited increase in landfill tax may inadvertently discourage the development of new recycling and energy facilities. This could hinder progress, particularly considering England’s plans to reduce organic fraction landfilling in the coming years. Some industry experts believe this sends the wrong message to the sector.
Tonnage
In the current market, landfill prices have experienced a slight uptick. Although gate fees for energy-from-waste facilities have also risen slightly in recent weeks, the scarcity of waste tonnage helps maintain some stability in pricing. Some businesses in the refuse-derived fuel (RDF) market report reduced gate fees, driven by the aim to attract UK waste to European destinations.