The British Aggregates Association (BAA) is alerting members and stakeholders to a significant consultation recently launched by the UK Government regarding reforms to Landfill Tax, which will profoundly impact the mineral and building materials sector.
The consultation opened on April 28, 2025, and is a critical opportunity for industry stakeholders to voice their concerns on proposed changes that could reshape practices in quarry operations, waste disposal, and secondary aggregate production.
The UK Government’s proposals include:
– A single landfill tax rate by 2030, phasing out the lower rate entirely.
– The removal of exemptions for mineral sector practices by April 2027, affecting quarry restoration and the use of stabilisers in dredged materials.
The revocation of the Qualifying Fines Regime will remove access to the lower tax or exemption rate for fines used for restoration starting in April 2027.
– The withdrawal of Landfill Tax relief for materials deposited under the Quarries Restoration Order 1999.
The BAA warns that these changes will lead to increased costs for disposing of fines from the processing of secondary aggregates derived from inert waste like crushed concrete and subsoils. Removing the lower tax rate is expected to raise gate fees at compliant landfill sites, posing a substantial burden on reprocessors and end-users. It could diminish the demand for secondary materials, which is essential for promoting a sustainable alternative to primary aggregates and meeting the goals of a sustainable circular economy.
Furthermore, the construction sector, which generates sizeable volumes of recyclable materials, could see costs escalate significantly. Removing key exemptions may hinder project timelines and compel contractors to adopt less sustainable practices, creating challenges in site restoration and increased costs for site clearance and muck-away services, particularly for critical brownfield development. The impetus to separate and segregate materials such as soils and stones will no longer be advantageous, and there is a danger that all waste will be mixed together with one rate for all.
As the Government aims to facilitate the construction of 320,000 new affordable homes, the BAA argues that these reforms risk thwarting efforts to address housing shortages. Increased disposal costs will be passed on to buyers, further straining housing affordability in the UK.
Interestingly, while the proposed reforms aim to boost recycling, reusing and repurposing efforts, BAA fears that raising the costs of legally permitted disposal routes could lead to a rise in waste crime and the proliferation of more unauthorised tipping sites, thus undermining the principles of a circular economy that the government intends to uphold.
Key Dates
– July 21, 2025: Deadline for completed objections to the consultation.
– April 2027: Anticipated removal of the exemptions and fines regime.
– 2030: Full implementation of a single tax rate.
In light of these developments, BAA urges all members to participate actively in the consultation process and submit their response. This is an essential moment for the industry to demonstrate on mass its commitment to sustainable practices and advocate for regulations that support responsible operators.
A members’ meeting is scheduled for June 3rd, during which members can discuss the consultation and formulate a collective response to the questions raised by the Government consultation.
Mike Phillips, BAA CEO, comments, “The BAA works tirelessly to ensure the interests of our members are fully represented at the highest level and that their voices are heard. This consultation will have a significant impact on our critical sector. Bringing our members together to consult and formulate an appropriate response is just one of the ways in which the BAA works to support our members.”
John Carlon, BAA Director of Planning and Permitting, comments: “The most recent consultation on this subject in 2023 had 49 responses, which illustrated to the HMRC that our sector was not hugely interested, hence the reason for the new consultation. This proposal is a sledgehammer cracking a nut, as it is directly related to the misdescription of mixed fines waste as soils and stone. Our sector should not be penalised directly by cost implications imposed when this issue should be enforced by the Environment Agency at materials recycling facilities.”
