"Landfill tax is currently charged at two rates: a standard rate of £126.15 per tonne and a lower rate of £4.05 per tonne for inert materials like soil, concrete and bricks. The lower rate was introduced because these materials do not break down in ways that cause pollution. From April 2025, the government has proposed phasing out the two-tier system in favour of a single flat rate. Officials argue that this change will "simplify the system, reduce fraud, and better support environmental targets.""
"At present, building a home generates average waste costs of just £690 under the lower rate. Under the proposed single rate, this figure could surge to £24,820 - an increase of £24,100 per home. Given the government's target of 300,000 new homes a year, this tax reform could add more than £7.4 billion in landfill tax costs by 2030. Industry leaders warn these costs will either make projects unviable or be passed directly to buyers, inflating already stretched house prices."
Landfill tax currently charges a standard rate of £126.15 per tonne and a lower rate of £4.05 per tonne for inert materials such as soil, concrete and bricks. The lower rate exists because inert materials do not break down in ways that cause pollution. From April 2025 the government proposes phasing out the two-tier system in favour of a single flat rate to simplify the system, reduce fraud, and support environmental targets. Construction generates large volumes of heavy inert waste and would be disproportionately affected. Average waste costs per home would rise from about £690 to around £24,820, adding roughly £24,100 per house. With a target of 300,000 new homes a year, the change could add more than £7.4 billion in landfill tax costs by 2030, potentially making projects unviable or pushing costs onto buyers and inflating house prices.
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