The drop reflects a longstanding trend which some welcome as a sign of improvements to the circular economy.
According to official data released by the UK Government, total provisional Climate Change Levy [CCL] and Carbon Price Floor [CPF] receipts for the tax year 2024-25 were £1,794million. This represents a 2% fall compared with the previous 12 months.
Total provisional receipts for Landfill Tax were also down by 1%, at £486million. This continues an ongoing trend of falling income from the charge, with 2021-22 the only year in the past decade that saw payments increase.
‘Some analysts claim this reflects significant improvements in how businesses are using materials, with more focus on recycling, reuse and circularity. However, as ENDS Waste & Bioenergy reported last week, the gap between payments received and owed is widening as fraud and avoidance cases rise,’ said David Gudgeon, Head of External Affairs at Reconomy Connect.
‘It is encouraging to see landfill tax receipts continuing to fall. This suggests that businesses are making better use of their materials, focusing more on recycling and reuse, and are diverting waste away from landfill,’ they continued. ‘However, we are still a long way from becoming a truly circular economy. The latest data shows that the circularity gap in the UK is currently 7.5%, meaning that the vast majority of secondary materials don’t re-enter the economy.’
Image: Rose Galloway Green / Unsplash
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