A new 10 per cent levy on waste permits has been dubbed “illogical and unjust” by a trade body.
The Mineral Products Association (MPA), which represents companies recycling and reusing demolition and construction materials, criticised the move by the Environment Agency (EA).
The new levy comes into force on sites in England regulated by the EA from 1 April 2025.
In a statement, the MPA said the move comes at a time when the regulatory fees paid by legitimate businesses had already reached an all-time high.
MPA executive director Mark Russell said: “This decision is illogical and unjust. It flies in the face of the government’s drive to kickstart economic growth, and it will discourage investment in the circular economy.
“Why should businesses that operate to high environmental standards – yet are facing deteriorating quality of service from the regulator – pay even more to fund unrelated crime-fighting?
“We strongly back initiatives to tackle waste crime and address the environmental harm it causes. However, this is yet another example of the burden being put on reputable operators, despite the chancellor calling on businesses to drive growth and ‘tear down regulatory barriers’.”
He added that compliant businesses should not be treated as a cash cow for regulators.
“Cumulative regulatory drag is real and is already harming the British economy. Yet we continue to see incremental changes that introduce additional cost, bureaucracy, time and effort, often with little meaningful effect, that simply increase the burden not just on legitimate operators but also on the regulators responsible for administering them.”
In a consultation that closed earlier this year, the EA said the levy was intended to boost its income to increase resources to reduce offending in the waste sector and it was not legally able to use other money it generates for the purpose. It estimated the levy would generate £3.2m extra per year and increase enforcement activity by 30 per cent.
It said it carried out an economic analysis and considered a 10 per cent levy to be a “reasonable contribution” for waste companies to make.
An EA spokesperson said this week: “Waste crime is toxic. It undermines legitimate businesses and costs England’s economy around £1bn a year in damages.
“The new waste crime levy will enable us to have a more significant impact on waste crime and reduce environmental damage by disrupting more illegal activities and pursuing more perpetrators.
“We will continue to work with compliant businesses and operators to turn the tide on waste crime and protect the environment and communities.”
