Wales has set out new Landfill Disposals Tax rates for disposals made on or after 1 April 2026. The regulations were made on 5 December by Mark Drakeford MS, Cabinet Secretary for Finance and Welsh Language, laid before the Senedd on 9 December, and are scheduled for approval on 20 January 2026. If passed, the standard rate will be £130.75 per tonne, the lower rate £8.65, and the unauthorised disposals rate £196.15.

This follows the sizable uplift introduced for 2025–26, when Wales also reset the lower rate to 5% of the standard rate to sharpen the signal on inert materials. Current 2025–26 rates-£126.15 standard, £6.30 lower and £189.25 unauthorised-remain in force until 31 March 2026. The move aligns with the Welsh Government’s Beyond Recycling strategy and its aim to move towards zero waste by 2050.

For budgets, the change is straightforward: each standard‑rate tonne will cost £4.60 more than this year; the lower rate rises by £2.35. A site landfilling 10,000 tonnes at the standard rate would therefore face around £46,000 in additional tax from April. Wales also retains a 150% ‘unauthorised’ rate to strip profit from waste crime.

Across the border, HMRC confirms England and Northern Ireland will move to the same standard and lower rates from 1 April 2026. In parallel, the UK Government has proposed increasing the charge at illegal sites to 200% of the standard rate from 2027-recognising the need to keep pace with waste crime.

Early signs show the price signal is biting. Welsh Revenue Authority statistics report tax due from landfill disposals rose 28% in July–September 2025 versus the same period in 2024, largely reflecting the higher 2025–26 rates and the stronger lower rate. April–June 2025 also saw a 10% year‑on‑year increase in tax due.

Wales continues to lead the UK on municipal recycling. Official figures put local authority recycling at 66.6% in 2023–24, up from 65.7% and above the national 64% target-closing in on the 70% goal. That performance reflects long‑running separate food waste collections and community buy‑in.

But higher gate fees can also push material into the shadows if enforcement lags. Local authorities recorded 42,171 fly‑tipping incidents in 2023–24, up 6% year on year, with household waste involved in most cases. Wales counters this risk by setting the unauthorised disposals rate at 150% of the standard rate; in England, HMRC currently taxes illegal sites at the standard rate and adds penalties.

Enforcement capacity should strengthen in 2026. Defra’s digital waste tracking service will be opened to permitted and licensed waste‑receiving sites in spring 2026 and made mandatory for those sites from October 2026, creating near‑real‑time data that helps regulators and councils pinpoint suspicious movements.

For operators handling construction spoil and fines, the lower rate only applies to qualifying materials. Welsh Revenue Authority guidance requires Loss on Ignition testing for qualifying fines with a 10% threshold; fail the test or record‑keeping and the load becomes standard‑rated, with potential penalties. Tight pre‑acceptance checks and testing schedules will protect margins.

For councils, the practical window is now: refresh bulky‑waste collection options and communications to undercut rogue ‘cash‑in‑van’ offers; prioritise reuse, repair and food‑waste capture in contracts; and plan for digital waste tracking onboarding. For businesses, clean segregation and regular waste audits can cut exposure to standard‑rate charges while improving recycling yields.

Key dates to watch: regulations made on 5 December 2025 and laid on 9 December; Senedd approval is scheduled for 20 January 2026. Unless amended, the new rates take effect from 1 April 2026. Until then, the 2025–26 rates continue to apply.