Landfill tax reform proposals could make nationally significant infrastructure projects and major housing projects unviable, FCC Environment warns.
In a letter to the Chancellor Rachel Reeves, FCC Environment raised concerns about the proposed move to a new single, flat rate of landfill tax.
The company warned that the reforms could see a tax rise of ‘almost 3,000%’ for developers and major construction firms.
Under the current scheme, the removal of 1,000 tonnes of unusable or recyclable soil from a building site costs the developer, or the waste producer, £4,000.
Under the new proposals, this could increase to as much as £126,000, FCC Environment says.
The letter comes after the National Federation of Builders (NFB) said the proposals may be ‘industry breaking’.
It urged its members to take the ‘circular economy seriously’ and immediately start work on updating their site waste management plans in response.
These reforms will undoubtedly make some of our most important infrastructure projects and much needed housing developments become unviable for developers.
Julie Fourcade, Head of External Affairs at FCC Environment, said the organisation is ‘extremely worried’ that these proposed changes will drive up the cost of construction.
“These reforms will undoubtedly make some of our most important infrastructure projects and much needed housing developments become unviable for developers – putting the governments housing targets and economic growth plan at risk,” Fourcade said.
FCC Environment has also raised concerns that the proposed removal of the landfill tax exemption for material disposed in UK quarries by 2027 is ‘likely to undermine’ plans to restore old quarries back into productive land assets,
The organisation says the proposed changes could also lead to a potential increase in illegal dumping.
“We’re unconvinced that this tax change will reduce waste crime as the government believes,” Foucade continued. “In fact, the proposals will simply make the returns higher for those criminals’ intent on making money whatever the cost.”
Originally introduced in 1996, the landfill tax is designed to encourage the diversion of waste away from landfill towards more environmentally friendly waste management practices.