Things we’d like to see in the budget – Landfill Tax Changes

Dear Rach,

As you’re studying your budget options, be assured that the beleaguered housebuilding sector and its supply chain (including us of course) is doing the same.

We know that not all the blocks to housebuilding are financial, and we’re not expecting you to fix them all (you have colleagues for that), but there are some measures you could take that really would help – and we plan to outline week by week until we finally know what the budget will bring.

So, to start, can you spare a thought for the impact of your changes to Landfill Tax?

As part of the housebuilding supply chain, it seems to us that the proposed equalisation of Landfill Tax, – a 3000% increase which is likely to be fully implemented by 2030, is the last thing the sector needs if the Government is serious about increasing the amount of new homes built in the UK.

Adding between £8k and £24K to the cost of each new house cannot simply be absorbed, and will have to go on the price in a market that is already struggling. And we all know builders can’t afford to build if no-one can afford to buy.

As David O’Leary, executive director at the Home Builders Federation, commented: “The viability of new housing delivery has been significantly affected in recent years by a swathe of new taxes on development and additional policy costs imposed by government.”

He added: “The proposed increase in Landfill Tax would threaten the viability of even more projects, leading to fewer Affordable Homes and reducing supply overall. We are urging government to think again about this tax that would make its ambitious housing target even more difficult to achieve.” 

The sector will, of course, respond by being even more careful about minimising waste – but frankly, it’s already doing just about everything it can.

So Rach, please, ask yourself if this is this realistic, and perhaps reconsider this particular sledgehammer!

James Scott
MD