The UK recycling industry, including major aggregate firms and trade associations, has raised significant concerns about the EA’s approach. The Sheehan Group, a leader in the sustainable recycling of construction materials, has strongly opposed the levy. Katie Sheehan, Sales Director, described the charge as “unjust,” arguing that instead of taxing compliant operators, the EA should impose the maximum possible fines on waste crime offenders.
Other industry leaders have echoed this sentiment. David Kinloch, Director of CDE Group, called the levy “incredibly disappointing” for businesses that invest millions into circular economy solutions. Matthew Lawman, Director at AA Environmental Ltd, emphasized that the existing waste permitting system is already costly and slow, and additional fees could deter businesses from further investment in sustainable practices.
The Mineral Products Association (MPA) has also voiced opposition, with Executive Director Mark Russell stating that the move reflects a broader trend of regulators increasing fees to cover operational costs, rather than implementing policies that effectively tackle illegal activities. He warned that the cumulative regulatory burden is already harming the UK economy, and this levy could further discourage investment in the circular economy.
The EA argues that the levy is necessary to combat illegal waste operations, which cost England’s economy approximately £1 ($1.29) billion annually. The agency claims that the additional revenue will enable a 30% increase in waste enforcement activities, helping to shut down unlicensed waste sites and prevent environmental damage.
However, critics argue that this approach contradicts the “polluter pays” principle, as it distributes the cost of enforcement across all businesses, including those operating in full compliance with environmental laws. The Renewable Energy Association (REA) has noted that the levy places an undue financial burden on firms that are already investing in sustainable waste management practices.
The waste permitting process in the UK is already viewed as slow and expensive, creating operational challenges for businesses in the recycling and construction sectors. Industry leaders worry that the new levy will add additional costs and bureaucracy, potentially slowing down investment in innovative waste reduction technologies.
This policy comes at a time when the UK government is promoting economic growth and sustainability initiatives, leading critics to question whether the levy aligns with broader national goals. The MPA has argued that such regulatory changes create incremental costs that hinder economic development, ultimately making it harder for businesses to contribute to the UK’s net-zero targets.
As the April 2025 implementation date approaches, businesses and trade groups are calling on the Environment Agency to reconsider the levy’s structure. Industry stakeholders are urging regulators to focus on directly penalizing waste crime offenders rather than imposing additional costs on compliant businesses.
The recycling industry plays a critical role in reducing landfill waste and lowering carbon emissions, and companies investing in sustainable solutions argue that they should be supported—not burdened with additional financial penalties. The EA’s decision on whether to modify the levy will have long-term implications for the UK’s circular economy and waste management sector.
