PwC comments on the scrapping of Landfill Tax reforms in the UK Budget 2025

Commenting on the scrapping of Landfill Tax reforms, Holly Grantham, Head of Environmental Tax at PwC UK, said:

“Earlier this year the Government published a consultation proposing significant reforms to Landfill Tax, including the removal of the lower rate of tax. This was met with concerns, from the construction industry, in particular, who warned that that this could make many infrastructure and housebuilding projects unviable.  

“The Government has apparently listened to the industry’s concerns, announcing today that the proposed move to a single rate of tax will now be scrapped. Instead, in order to address the widening gap between the lower and standard rates of tax (which can be a driver behind waste fraud), the two rates of tax will increase in step going forwards.  

“The Government has also confirmed that they will be no longer be removing the exemption for the filling of old quarries, which was another reform proposed under the consultation. Again, this is likely to be welcome news for the construction sector who produce a large amount of inert material which can be used for these purposes.”

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