Heathrow's Third Runway to Face £1 Billion Flytipping Tax Hike

As the UK government finalizes plans for a third runway at Heathrow Airport, a stealth tax raid aimed at tackling flytipping will significantly increase the project's costs. The estimated £1 billion (£1,000,000,000) hike in landfill tax will likely be passed on to passengers, making their journeys more expensive. The Treasury's consultation to scrap exemptions and reduce rates for landfill tax is an attempt to combat soaring "waste crime." Heathrow's internal briefing note reveals that the changes will increase its landfill tax bill from £35 million to over £1 billion, with the airport's project accounting for more than half of the annual landfill tax take.

Key Takeaways:

• The consultation on landfill tax changes aims to tackle soaring volumes of "waste crime" and is expected to significantly increase landfill tax revenue.
• Heathrow estimates that its landfill tax bill for the third runway will increase from £35 million to over £1 billion (£1,000,000,000) as a result of the changes.
• The airport's third runway project is expected to account for more than half of the annual total take for landfill tax.
• The Treasury wants to scrap the lower rates for less-polluting materials and limit exemptions, citing high rates of landfill tax avoidance.
• Treasury officials have faced resistance from other departments since announcing the reforms in the spring.
• A consultation on the proposed tax changes was launched in April, and the government is expected to make a final decision on Heathrow's expansion by the end of November.
• The £1 billion landfill tax increase is expected to be passed on to passengers through higher take-off and landing charges.
• The airport's rival expansion proposal, submitted by hotelier Surinder Arora, is a £25 billion (£25,000,000,000) plan that envisages a shorter runway than the in-house scheme, which is estimated to cost £49 billion.

Statistics:

• Estimated landfill tax revenue increase: £1 billion (£1,000,000,000)
• Heathrow's expected landfill tax bill for the third runway: over £1 billion (£1,000,000,000)
• Annual landfill tax take: over £2 billion (£2,000,000,000), with Heathrow's project accounting for more than half
• Landfill tax rates: standard levy of £126.15 per tonne, while the lower rate for less-polluting materials is £4.05 per tonne
• Treasury's estimated revenue from increased landfill tax: £1 billion (£1,000,000,000) in the first year, increasing annually
• Heathrow's take-off and landing charges: expected to increase as a result of the £1 billion landfill tax hike

Sources:

• "Stealth tax raid on Heathrow expansion" by Oliver Gill, The Sunday Times (no date specified)
• "Heathrow expansion: The £1 billion tax hit" by Oliver Gill, The Sunday Times (no date specified)
• "Government backs Heathrow expansion with rival plans" by Oliver Gill, The Sunday Times (no date specified)
• "Surinder Arora plans to build £25bn Heathrow rival" by Oliver Gill, The Sunday Times (no date specified)
• "Heathrow's £1 billion tax bill: What will passengers pay?" by Oliver Gill, The Sunday Times (no date specified)