Measure
The main rates of CCL for gas, electricity and solid fuels will be increased in line with RPI from 1 April 2027. The main rate for liquified petroleum gas will continue to be frozen. The reduced rate will remain at an unchanged fixed percentage of the main rates.
Additionally, the government will freeze the Carbon Price Support rates in Great Britain at a level equivalent to £18 per tonne of CO2 in 2027-28.
Following a consultation in 2025, both electricity used in electrolysis to produce hydrogen and natural gas used as a source of CO2 in the production of sodium bicarbonate will be made exempt from CCL. Subject to parliamentary approval, these amendments will be in force by Spring 2026.
The standard rate of landfill tax will be increased in line with RPI from 1 April 2026 and the lower rate by the cash amount of the increase in the standard rate, maintaining the differential between the two rates in cash terms. In real terms, the standard rate will increase to £130.75 per tonne, and the lower rate to £8.65 per tonne.
The rate of PPT will increase in line with CPI from 2026-27. In addition, a consultation will be entered into in early 2026 on the introduction of mandatory certification for mechanically recycled plastic packaging for businesses to claim an exemption from PPT.
In Finance Bill 2025-26, the government will legislate to allow for a mass balance approach to be used to attribute chemically recycled plastic for the purposes of PPT and to remove pre-consumer waste as a source of recycled content from 1 April 2027.
Businesses who manufacture, import or distribute goods or services subject to these levies/taxes.
From 1 April 2026.
These rate increases are in line with similar increases we have seen in recent budgets.