Future of the Scottish Landfill Communities Fund

Feedback updated 21 Jan 2026

We asked

We asked for views on the future of the Scottish Landfill Communities Fund (SLCF) in light of declining landfill tax revenues, which will make the current funding model unsustainable from 2026–27. We asked for feedback on possible changes to the tax credit system, funding objectives, and regulatory arrangements, as well as views on alternative funding approaches. We also asked about the potential implications of closing the SLCF and how communities, particularly those near residual waste treatment facilities, should be supported as Scotland moves towards a more circular economy.

You said

We received 26 responses from individuals and organisations, including Approved Bodies, charities, local authorities, and waste industry representatives. Key themes included:

Concern about closure impacts: Many respondents highlighted the loss of funding for community and environmental projects, particularly in rural and island areas, and the risk of widening inequalities.
Environmental and social priorities: Respondents stressed that the SLCF supports biodiversity, climate goals, and local amenities, and its closure could undermine these efforts.
Suggestions for reform: Proposals included increasing the tax credit percentage, broadening the scope of taxation, centralising administration, and evolving funding objectives to align with circular economy priorities.
Calls for a successor or transitional fund: Several respondents urged the Scottish Government to consider alternative funding mechanisms or a restructured scheme to maintain support for communities but there was no overall consensus on how a successor fund should operate.

We did

We carefully considered all responses to the consultation alongside the wider policy and financial current set out in the Scottish Budget. An analysis of consultation responses confirmed that declining landfill tax revenues mean the SLCF will become operationally unviable from 2026–27, with administration costs exceeding permitted limits. After reviewing options, Scottish Ministers decided to introduce legislation before the Scottish Parliament to close the SLCF to new contributions from 1 April 2026. Prior contributions to Approved Bodies should enable funding for existing and new projects to continue until March 2028. This will ensure continued support for communities during the wind-down period.

Results updated 20 Jan 2026

Read the Consultation Analysis Report.

Published responses

View submitted responses where consent has been given to publish the response.

Overview

The Scottish Landfill Communities Fund (SLCF) is a voluntary tax credit scheme linked to the Scottish Landfill Tax (SLfT). The fund was established to mirror the UK Landfill Tax Communities Fund when SLfT was introduced in 2015 and provides funding for community or environmental projects in recognition of the dis-amenity of landfill activity.

The continued reduction in landfilled waste in Scotland means that SLfT revenue is declining. The Scottish Environment Protection Agency (SEPA) reported that 2 million tonnes of waste was landfilled in 2023, a reduction from 4.2 million tonnes when SLfT was introduced in 2015. As a result, SLfT revenues have declined from £149 million in 2015-16 to £68 million in 2023-24. This long-term trend of decreasing SLfT revenues reflect the success of efforts to encourage diversion of waste from landfill, driven by the SLfT and the introduction of the ban on the landfilling of biodegradable municipal waste from the end of 2025.

As SLfT revenues are directly linked to the SLCF funding, when revenues decline contributions to the SLCF also reduce. Contributions to the fund have more than halved since 2015 and the Scottish Fiscal Commission (SFC) forecast that contributions will drop to around £1.4 million in 2026-27.

The operation and administration of the SLCF is set out in legislation. The associated costs of administering the fund in future years will breach the legally permitted limits, as a result of the declining contributions. This leaves the SLCF operationally unviable from 2026-27 onwards.

This consultation will run for 12 weeks until 6 June 2025 and offers an opportunity to give your views and ideas as to the future of the SLCF.

Views are also sought on a range of issues to inform relevant impact assessments and ensure that these are fully considered in relation to the future of the SLCF. Responses are encouraged from all interested parties.

The Scottish Government would also like to take the opportunity to seek views on how communities affected by residual waste treatment facilities should be supported as part of Scottish Governments ongoing development of the Residual Waste plan to 2045, due to be published in 2027.

The Scottish Government will carefully consider all responses to the consultation, prior to taking a decision on the future of the SLCF and support for communities impacted by residual waste treatment facilities.

Read the consultation paper. The consultation paper contains full background information for this consultation. You may find it useful to read or refer to while responding.

Useful information about responding to this consultation Useful information about responding to this consultation

As you complete your response, each page will provide the option to 'Save and come back later' at the bottom. This means you can save your progress and return to the consultation at any time before it closes. If you don't use this feature and leave the consultation midway through, your response will be lost.

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On the 'About You' page at the end of this consultation, organisations will have the opportunity to tell us more about their work and/or how their response was informed.

After the consultation has closed there will be a few months delay before any responses are published. This is because we must check any responses to be published abide by our Terms of Use.

An analysis report will usually be published some months after the consultation has closed. This report will summarise the findings based on all responses submitted. It will be published on the Scottish Government website and you may be notified about it if you choose to share your email address with us. You can also join our consulation mailing list where we regularly list newly published analysis reports (as well as new consultations).

Why your views matter

This consultation seeks your views on the future of the SLCF, given the forecast decrease in waste disposed of at landfill sites because of Scotland’s transition to a more circular economy. The information gathered via the consultation and subsequent analysis will inform decisions about the future of the fund which will be communicated alongside the publication of the consultation analysis report.

Decisions will be taken in advance of 2026-27, to ensure that all relevant organisations and interested parties are informed in good time.

What happens next

All responses are currently being analysed and considered along with any other available evidence to help us. An analysis report will be made available shortly.

Where respondents have given permission for their response to be made public, and after we have checked that they contain no potentially defamatory material, responses will be made available to the public.