BAA urges action on landfill tax reform

The British Aggregates Association (BAA) is urging the construction and mineral sectors to respond to a government consultation on landfill tax reform that could have major consequences for quarry operations, secondary aggregates and site restoration practices.

Launched on 28 April, the consultation proposes scrapping the lower rate of landfill tax and removing key exemptions used in quarry restoration and inert waste recycling. If enacted, the changes would be phased in from 2027, with a single landfill tax rate in place by 2030.

Key changes include:

• Abolition of the lower landfill tax rate and Qualifying Fines Regime by April 2027
• Withdrawal of tax relief for materials deposited under a Quarries Restoration Order
• End of exemptions for the use of stabilised dredged materials and other mineral sector practices

BAA chief executive Mike Phillips said the proposals would “significantly impact the mineral and construction sectors,” driving up costs for inert waste disposal and undermining efforts to promote a circular economy. “This consultation will have a significant impact on our critical sector,” he said. “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.”

The association warns that higher landfill charges will reduce demand for recycled materials such as crushed concrete and subsoils, as reprocessors face higher gate fees. The knock-on effect could see increased costs for brownfield development, site clearance and muck-away services, as well as disincentives to separate and segregate materials on-site.

BAA planning and permitting director John Carlon added: “This proposal is a sledgehammer cracking a nut. Our sector should not be penalised when the real issue is waste misclassification at recycling facilities. That’s a regulatory failure, not a reason to impose blanket tax rises.”

The changes also raise concerns for new housing delivery. With the UK targeting 320,000 new affordable homes, BAA says rising materials and disposal costs will feed into housing prices and reduce affordability.

Key dates:

• 21 July 2025: Deadline for responses to the consultation
• 3 June 2025: BAA members’ meeting to coordinate industry feedback
• April 2027: Expected removal of exemptions and fines regime
• 2030: Implementation of a single landfill tax rate

The BAA is calling on all members and stakeholders to engage with the consultation and submit responses to help protect the economic and environmental value of secondary aggregates and mineral restoration practices.