Landfill reliant SMEs risk becoming uncompetitive
Small businesses are set to throw away £470m in landfill tax this year by not recycling enough, according to new research.
A study carried out on behalf of Veolia by SQW found that last year SMEs in the UK spent £430m on tax alone through sending waste to landfill instead of recovering it. By 2020 if recycling rates don't improve this could amount to over £4.4bn.
As landfill costs rise - from £64 to £80 a tonne in the next two years - a typical SME will spend an average of £335 this year on tax by sending waste to landfill, increasing to £358 for 2013.
This could total over £3,600 per SME being spent in tax over a decade; between £280 and £380 each year from now till the end of 2020.
According to Veoila's CEO Jean-Dominique Mallet, small firms need to urgently consider alternatives to landfill if they want to remain competitive.
"SMEs could be saving money when it comes to paying for waste disposal. We know keeping costs down is the priority for businesses in these tough economic times and recycling will help them to pay out less," he said.