The Cast Metals Federation (CMF) has responded strongly to the Government’s proposed reforms to Landfill Tax, warning that they threaten the competitiveness and viability of many UK foundries.
In April 2025 HM Treasury launched a consultation on wide-ranging reforms to Landfill Tax, including a move to a single rate – abolishing the current lower rate for inert materials such as foundry sand.
In its response to the consultation, the CMF highlighted that although the proposals are intended to reduce landfill, simplify compliance and deter fraud, they overlook the reality that surplus foundry sand is an unavoidable by-product with limited alternative uses.
Eliminating the lower rate would simply serve to create unsustainable costs without offering workable solutions.
CMF chief executive Dr Pam Murrell FICME said: “The cast metals industry very much supports the drive to a more sustainable use of our critical raw materials, including sand.
“But the answer is not to impose an additional tax that risks driving foundries out of business and out of the UK.
“What is needed is a commercial market for repurposed sand, supported through regulation and procurement, so that this by-product becomes a valuable input elsewhere in the economy.”
Why this matters for foundries
Sand is the essential moulding material for much of the UK casting industry. Foundries already re-use their sand as far as practicable, reclaiming it many times within the process. Despite this, a surplus remains. This surplus is currently classed as inert waste and disposed of at the lower landfill rate.
The Treasury’s proposals would remove that distinction, forcing foundries to pay the much higher standard rate. For some foundries the increase would be more than thirty-fold – taking disposal costs from around £4 per tonne to over £120 per tonne.
Analysis of CMF member responses to this consultation shows that the average annual additional cost per foundry would exceed £570,000, with many foundries making clear that such costs could not be absorbed. Closures and redundancies would follow, undermining jobs, investment, and the resilience of high-value manufacturing supply chains across the UK.
CMF’s response
CMF has responded firmly to the consultation on behalf of the UK foundry and casting industry. Its submission highlighted the:
- Scale of the cost impact, and the risk to competitiveness and economic viability.
- Disproportionate impact on sand foundries, which are likely to see closures and offshoring of production.
- Inert nature of used foundry sand, which in some countries is already specified for construction applications.
- Absence of a viable market for surplus sand in the UK, and the need for regulatory and demand-side incentives to create one.
- Risk of increased fly-tipping and misdescription of waste if the reforms go ahead without alternatives in place.
Alongside the formal submission, CMF has engaged directly with Treasury officials, providing further evidence and offering to meet to develop practical solutions. Almost 30 member companies have also written to their constituency MPs, highlighting both local and national implications. Many MPs have in turn raised the matter with Treasury.
The issue has also secured regional backing, with the West Midlands Combined Authority and the Mayor’s office, recognising the concentration of sand foundries in the area, writing to the Treasury to warn of plant closures and job losses, and urging Government to consider exemptions or targeted schemes for industrial by-products like foundry sand.
Where things stand
The consultation closed in July and the Government is now reviewing responses. No timetable has been published, but announcements are expected to be linked to the Autumn Budget.
Treasury officials have confirmed that no decisions have been made, and have invited further engagement on the development of reuse protocols. CMF will continue in dialogue with Treasury and other stakeholders, and CMF members are continuing to engage their MPs.
At the same time, CMF continues to support research into constructive alternatives. Ongoing initiatives include collaborative projects to explore cross-sector reuse of industrial by-products, and partnerships between individual foundries and local construction firms to trial practical applications.
These projects underline the industry’s commitment to sustainability and the circular economy – demonstrating that foundries are not standing still, but already actively working to find new pathways for their by-products.
Conclusion
The CMF has emphasised to Government that the casting and foundry industry is committed to sustainability and resource efficiency. But reforms to the Landfill Tax must take into account the realities of industrial by-products and the competitiveness of vital manufacturing supply chains.
Dr Murrell added: “Through our strong consultation response, coordinated member action, and ongoing engagement with policymakers, CMF has made clear both the risks of the current proposals and the opportunities for a better approach.
“Our message to Government is simple: support reuse and recycling, and don’t undermine this strategically critical UK industry with an unsustainable tax burden.”
