Stories
Caroline Munro on Modernising Tax Policy
Sortera UK's Sales Director discusses why it’s time to rethink construction waste tax
Waste management in the UK has evolved rapidly over the last decade and nowhere is that more visible than in the construction sector. On sites across the country, materials are being sorted at source, recycling rates are increasing, and technology is streamlining compliance and reporting.
Yet, while the industry has moved forward, waste tax policy has struggled to keep pace. If the system is going to genuinely support environmental goals, reduce waste crime, and make room for innovation, it needs to be modernised to reflect today’s realities and be adaptable enough for tomorrow’s challenges.
Where We Are Now
Current waste taxes, including landfill-related charges, have played a role in pushing waste up the hierarchy. They’ve encouraged recycling, reduced reliance on landfill, and made some routes to disposal less financially attractive. But they’ve also exposed gaps in the system:
Broad categories that treat all materials the same, regardless of risk or potential for recovery.
Limited flexibility to adapt to new waste streams or materials.
Costs that can unintentionally push waste into illegal channels when compliant disposal becomes too expensive or complicated.
For construction waste management companies like Sortera, these gaps have real impacts on projects, costs, and the ability to deliver sustainable outcomes.
The Principles for Reform
Modernising waste tax policy isn’t just about changing rates; it’s about designing a system that works on the ground and can continue evolving. For us, the key principles are:
Responsive | Fair | Outcome-focused | Phased and predictable
Caroline Munro, Sales Director at Sortera, comments:
“The UK urgently needs modernised construction waste tax policy beyond just escalating landfill taxes. While standard landfill tax has increased by 21.6% for 2025/26 this alone isn't enough.
A modernised approach should include enhanced capital allowances for waste processing equipment, VAT reductions on recycled construction materials, and tax credits for companies achieving high waste diversion rates. This should also support the circular economy by incentivising material passports and design-for-disassembly practices.
The construction industry needs a policy that makes sustainable waste management economically attractive, not just makes disposal expensive. With construction waste contributing a significant proportion of UK waste streams, strategic tax incentives could drive significant environmental and economic benefits while supporting the industry's transition to net-zero goals.”
Opportunities for a Smarter System
1. Support recovery and reuse
2. Keep targeted reliefs where recovery isn’t viable
3. Make crime the expensive option
4. Invest in infrastructure
5. Align with other policies
Adapting for the Future
The construction sector is constantly evolving, from the materials used to the technology that tracks and manages waste. Tax policy needs the flexibility to respond to these shifts quickly, not just through once in a decade consultations, but with regular reviews tied to market data, recycling rates, and material trends.
Greater use of digital reporting could also help, providing insights into how the system is working and enabling faster, evidence-based adjustments.
Where Sortera Stands
As a construction waste management company and licensed waste carrier, we see the challenges and opportunities first-hand. We know where recovery works well, where infrastructure needs investment, and where the costs and complexities of compliance can become barriers.
- We believe modernising waste tax policy is an opportunity to:
- Reward those doing the right thing.
- Create space for innovation in recycling and recovery.
- Ensure the system can adapt as the sector changes.
Get the detail right, and we can cut waste crime, improve environmental outcomes, and keep construction projects moving, all while building a system that’s ready for the future.
Check out the full article 👉 https://www.mrw.co.uk/news/time-to-update-thinking-on-construction-waste-tax-03-10-2025/
