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Budget landfill decision saves foundry industry millions of pounds

Millions of pounds will be saved across the foundry industry thanks to confirmation in the Budget that used foundry sand will continue to qualify for the lower rate of landfill tax.


This decision is worth an estimated half a million pounds a year to Walsall-based iron foundry Chamberlin & Hill. Chamberlin, alongside the rest of the foundry industry, made a strong case to Government not to increase tax on their waste. The
Government investigated the environmental issues and associated costs involved in recycling the used sand, a by-product of the foundry process, and concluded that the sector should remain on the lower rate.


Minister for Business Pat McFadden said: Manufacturing is the heart of the Black Country and companies like Chamberlin are very important to the area. They made a good case to ministers about used foundry sand and the cost of potential tax changes on this material and I am glad to say that the Budget announced that it would continue to be charged at the lower rate.


This is good news for Chamberlin and good news for the foundry industry in general. It will save millions of pounds across the industry and its important that we keep supporting manufacturing.


Chamberlin chief executive Tim Hair added: Chamberlin exports over 70% of our production and the additional costs would have damaged our competitiveness. We continue to win export business and this decision helps to secure the future of the foundries and their employees.


There will be new qualifying criteria for the lower landfill tax rate that will be published later this autumn, which will set out a clear environmental rationale for the lower rating on the waste sand.

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