UK Steel, the trade association representing the UK’s steel producers, fully supports the government’s overarching objectives of improving environmental outcomes and tackling waste crime. However, following our assessment of the negative impact these proposals would have on our sector - without delivering any meaningful environmental benefit - we strongly urge HM Treasury not to proceed with the introduction of a single standard landfill tax rate, the removal of the Qualifying Fines Regime, or the phasing out of water discounts. UK Steel and its members call for further consultation with affected industries to better understand the policy objectives behind these changes, which currently appear to serve only to increase the tax burden on already struggling businesses.
While UK Steel and our members agree with the need to prevent abuse of the landfill tax system and ensure that reliefs and discounts are not exploited, the current proposals do not adequately reflect the technical and regulatory constraints inherent in steelmaking. Certain inert and non-recyclable residues generated during production have no feasible alternatives to landfill. Penalising the responsible disposal of such materials will not drive innovation or sustainability - instead, it will undermine the sector’s competitiveness, increase the risk of offshoring, and work against broader decarbonisation and regional regeneration efforts.
It is vital that any changes to the Landfill Tax regime are developed in coordination with wider government policy for the steel sector. The proposed reforms are misaligned with the goals of the forthcoming Steel Strategy, which aims to strengthen the UK steel industry through a more competitive and streamlined business environment. For instance, the additional costs from these landfill tax changes could partly cancel out recent positive interventions such as the increase in support under the Network Charges Compensation Scheme to 90%.