The UK government has opened a public consultation on proposed changes to Landfill Tax that could significantly affect packaging producers, waste handlers and recyclers.
The consultation, which runs from 28 April to 21 July 2025, is part of wider efforts to reduce landfill use, modernise the tax system and combat waste-related crime.
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Packaging professionals are being urged to examine the proposals closely, as they align with broader circular economy policies that are set to reshape how packaging waste is managed and taxed in the coming years.
Changes to tax structure may affect packaging waste disposal
One of the most significant proposals is the transition to a single rate of Landfill Tax by 2030. The current dual-rate system, which applies a lower rate to certain materials, including some packaging-related waste streams, may be phased out.
This change could increase disposal costs for businesses if packaging waste is not diverted through recycling or reuse routes.
The removal of several tax exemptions from April 2027 is also under consideration. These include schemes and reliefs currently used in some packaging waste processes, such as the water discounting scheme and exemptions related to specific material treatments.
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By GlobalDataIf adopted, these changes could influence packaging waste handling decisions and cost structures.
Reform supports shift to circular economy and compliance focus
The consultation forms part of the government’s strategy to transition to a circular economy, in which materials are kept in use for longer and resource efficiency is prioritised.
For packaging companies, this may increase the importance of designing products for recyclability and recovery, while minimising the proportion sent to landfill.
The proposals also aim to reduce non-compliance and waste crime, both of which are seen as undermining legitimate operators.
The government estimates that around 18% of UK waste may be handled illegally and is considering higher tax rates for disposals at unauthorised sites.
These measures are likely to support compliant packaging companies and recyclers by levelling the playing field and making enforcement easier.
Next steps for packaging companies and industry bodies
Packaging businesses, including producers, converters, and waste management partners, are encouraged to take part in the consultation process. Responses can be submitted online or via email, with the government also offering the opportunity for stakeholders to engage directly through meetings.
The consultation follows previous calls for evidence that highlighted the limitations of the current tax model and its lack of alignment with modern waste practices.
The outcome may influence how packaging waste is taxed and managed for years to come, reinforcing the need for companies to stay informed and actively contribute to the debate.
For full details, including consultation documents and response forms, visit the government’s official consultation page.
