The ESA has today welcomed an adjustment to Landfill Tax rates in the Chancellor’s Spring Budget.

Landfill tax rates for the year 2025-26 will be adjusted to better reflect actual RPI and ensure the tax continues to incentivise investment in more sustainable waste management infrastructure. The standard rate of Landfill tax will increase to £126.15 per tonne and the lower rate will increase to £4.05 per tonne.

Executive Director of the Environmental Services Association (ESA), Jacob Hayler said: “The Chancellor’s announcement that landfill tax rates will be adjusted to reflect actual RPI will help to ensure waste material does not fall down the hierarchy and will incentivise investment in alternative circular economy infrastructure.

Recent inflation spikes have not been accounted for in determining the rate of landfill tax, which has eroded the competitiveness of alternative waste treatment and recycling facilities. Today’s budget corrects this calculation and is very much welcomed by the Environmental Services Association.

However, correcting Landfill Tax rates – while hugely welcome – was just one half of ESA’s asks of this budget. To achieve a more sustainable circular economy and decarbonise waste treatment, the UK needs additional fiscal policy measures that don’t just stop waste falling into landfill, but which actively drive material up the waste hierarchy by stimulating market demand for recycled materials.

That is why an escalator on the plastic packaging tax, and perhaps a widening of this tax to other forms of packaging, remains a crucial policy instrument for future budgets.”