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Treasury's 'Unviable' Tax Slams Ports Industry
26 Apr
Summary
- A new landfill tax on waterway clean-up stabilisers could make vital projects unviable.
- The British Ports Association warns of job losses and increased flood risks.
- Treasury states only a small fraction of dredged material is affected by the tax.
A proposed landfill tax on substances used to clean dredged waterways is facing strong opposition from industry leaders and MPs. The Treasury plans to apply the tax on 'stabilisers' from April 2025, a move the British Ports Association (BPA) argues will render crucial industrial projects unviable and threaten thousands of jobs.
New analysis suggests the tax could drastically increase capital project costs, disproportionately affecting coastal and regional economies reliant on port development. The BPA has urged the Treasury to reconsider, warning of economic and environmental harm.
The Treasury defended the tax, stating it prevents hazardous waste from avoiding landfill tax. They added that only a small percentage of dredged material requires stabilisation and that businesses have a year to adapt to alternative, more cost-effective methods.
