Landfill tax: increase in rates
The standard rate of landfill tax will increase by £8 per tonne to £48 per tonne on 1 April 2010 and will then increase by another £8 per tonne to £56 per tonne on 1 April 2011.
The Chancellor also announced that the landfill tax 'escalator' (whereby the standard rate of landfill tax increases by £8 per tonne each year) will continue until April 2014 rather than ending in 2013. The Government has further confirmed that the standard rate will not fall below £80 per tonne in future.
Who will be affected?
Anyone disposing of most categories of waste at landfill sites will face increased landfill tax costs as a result of this measure.
As previously announced, the current rate will increase by £8 per tonne on 1 April 2010 and then by £8 per tonne annually thereafter (until 2014).
The continued rate rise has long been signalled so there is nothing unexpected in this measure. The ongoing rate rise will result in additional costs of sending waste to landfill and should be borne in mind by any business that needs to dispose of waste.