Open Association of Landscape Industries
Skip Hire Cost Changes.
On the 18th May 2012 HMRC issued new guidance on charges for landfill. The impact of this change is potentially very great for landscapers (and builders) and yet there seems to be little coverage of this change. The new guidance has been portrayed as a clarification of technical points which may be why it got so little attention but the impact was dramatic.
On the morning of 19th I rang my usual skip company to book a skip for a job next week. For central London we would usually pay around £170 + VAT, but I was told that their new charge was £100 haulage plus £140 per ton (+ VAT). As the job involves excavating a lot of soil this could mean that an 8 yard skip would cost over £1200. Given that the job was costed on the one-off price basis this means I have had to go back to the customer to discuss the project (it could cost an additional £4-5000).
A number of skip companies stopped taking bookings on the 19th and some weren’t answering the phone. Some were still offering skips at the old price because they were unaware of the change but they now seem to have come into line. There appear to be some companies offering lower prices now but the per ton price structure seems here to stay.
Some skip companies have protested at the change and are lobbying for a postponement of the introduction to allow their customers to adjust to the new pricing. Some large businesses seem to welcome the move saying that it will produce a level playing field and have a positive environmental benefit. This might work for big projects where it is possible to hire a trommel, screen your waste and sell the soil and aggregate on, but for domestic garden construction and drive installations that doesn’t make sense.
In the long run this is going to force a major change in the way we design gardens but in the short term I can see this causing a lot of customers to reconsider whether they can afford to continue with designs they have already committed to. It will probably encourage a lot more fly tipping as an empty skip will really look like gold dust.
Replies to This Discussion
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Permalink Reply by Guy Marcal on -
I have not heard about this and from my little bit of research it seems there is a lack of clarity from all sides. If true the potential impact on certain types of project could be catastrophic. Once skip permits etc that are required in London postcodes are factored in the cost of one skip could be enormous. I will be phoning our waste company on Monday to find out their take on this but if true perhaps LJN should rally a campaign alongside the skip companies to make the Government reconsider this policy?
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Permalink Reply by Richard Thornton on -
David, that's what I do. No problems just get the relavant exemptions from the EA and check with the planners. If its small scale shouldn't be too difficult!
Richard
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Permalink Reply by Guy on -
My skip people confirmed today that they are as much in the dark about this as everybody else at the moment. They were hit by the news last week about the new landfill tax and are awaiting further clarification from HRMC. They are anticipating skips to cost up to £1000 plus VAT!!! I'm quite frankly astounded that this discussion is not at the top of this board as even taking waste to the dump will be charged at £160 a tonne under these proposals. More than a five fold increase in the price of skips and waste disposal will put a lot of builders, landscapers and skip companies out of business.
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Permalink Reply by Mark Watson on -
These b*ggers sitting in their ivory towers don't make life any easier do they ? Mind you they may do a "pasty tax" and do a U-Turn.
Watch fly tipping get a lot,lot worse.
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PRO MemberPermalink Reply by Phil Voice on
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PRO MemberPermalink Reply by David Cox on -
Just got another quote today for a mixed waste skip - Soil and rubble £180 - though if you chuck an old bath into it - goes to £200 - they did say that prices will change abit as they adjust to the change but the more mixed the waste the more it will cost.
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Permalink Reply by Mark Watson on
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Thanks Stuart. I'd point the finger of blame at the government on this one, another stealth tax with very little thought as to the consequences on businesses and hence employment.They don't seem to understand that taking money out of the economy is stifling growth therefore making the problem worse.Meanwhile, the fit and able chap with his wife and three kids across the road from one of my elderly customers continues to pick up a fortune in benefits for at least the fourth successive year.
It's not a good time to make this change and it should have been phased in if it had to come in at all.
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PRO MemberPermalink Reply by David Cox on -
This is bad - I can see it gutting alot of landscapers who dont have a yard to operate from and sort waste at - I tipped a cubic meter of green waste (shredded already) and they had a really good look at it, normally they just look and say which pile to tip it on Shredded or not - They said they cant afford to separate so wont take the risk of some landscaper or Gardener sticking bits of plastic of some old fence in the mix due to cost
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PRO MemberPermalink Reply by Stuart Diprose Land-Scape.co.uk on -
well, i've emailed my mp, signed the petition and done the downing street contact form.my local skip co (Easy-Load) tell me they are doing what the competition are doing - they have had 4 price changes this week and are charging by the bin, whatever you want in the bin - so for a 6yd this moring, it's £150+vat or £180 inc. could be worse i suppose.
they tell me this is likely to change on a daily, weekly or monthly basis till they work out how to price for the changes.
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