The Cast Metals Federation (CMF) warmly welcomes today’s Government announcement confirming that proposals to move to a single rate of Landfill Tax in England and Northern Ireland will not be taken forward.
This decision, announced as part of today’s Budget, provides much-needed certainty for the UK castings and foundry industry and demonstrates that HM Treasury and HMRC have listened carefully to the concerns raised by CMF and its members throughout the consultation on these proposals.
In its consultation submission, CMF highlighted the severe and disproportionate impact that abolishing the lower rate would have had on foundries – with disposal costs for spent foundry sand (SFS) rising more than thirty-fold for some companies, threatening competitiveness, jobs, investment, and the resilience of critical UK manufacturing supply chains.
CMF Chief Executive Lee Marshall said: “We are pleased that Government has recognised the unique position of foundries and the unavoidable, inert nature of spent foundry sand. Today’s decision reflects the strength of evidence provided by CMF and our members, and the seriousness with which Treasury engaged with our concerns.”
“Although the announcement includes an increase in disposal costs for foundries – a major burden in an already challenging trading environment – it is nowhere near the level that a single rate of Landfill Tax would have created.
“As well as offering clarity and stability for foundries across the UK, this decision also creates the right conditions for continued collaboration between industry and Government to expand sustainable, commercially viable alternatives for surplus sand.”
The announcement
CMF particularly welcomes:
- The decision not to converge to a single rate, avoiding disproportionate additional costs for SFS disposal.
- Retention of the quarry exemption, preserving a vital disposal route for lower-rated inert materials, including SFS.
- A commitment to continued dialogue, with HMRC, Defra, the Environment Agency and HM Treasury set to work with industry on modernising regulation and reforming the Qualifying Fines regime.
However, we do note that retention of the lower rate is accompanied by a decision designed to prevent the gap between the two rates widening over the coming years. This means the lower rate of Landfill Tax – which is paid on the disposal of spent foundry sand – will more than double, rising by £4.60 per tonne, from £4.05 to £8.65 per tonne, through alignment with the cash increase in the standard rate (uprated by RPI).
The full Government response to the consultation can be found here.
Looking ahead
Taken as a whole, these decisions reflect the constructive, evidence-led engagement by CMF, its member companies, and regional and parliamentary supporters. Nearly 30 CMF members wrote to their constituency MPs, and many MPs and regional bodies – including the West Midlands Combined Authority – made strong representations to the Treasury.
The CMF remains committed to supporting sustainable and circular solutions for spent foundry sand. Alongside today’s announcement, our collaborative projects with universities, construction partners and cross-sector groups will continue to explore and trial practical routes for reuse.
Mr Marshall added: “While concerned at the increase in the lower rate, we view today’s decision as a very positive step overall. It gives the UK castings industry confidence at a critical time, and we thank Government for taking the concerns of industry seriously.
“We now welcome the opportunity to work with HMRC, HM Treasury and Defra on the development of robust reuse protocols and to help create the regulatory and market conditions needed to treat surplus sand as a valuable secondary resource.”
