About the Landfill Communities Fund

The Landfill Communities Fund (LCF) is a government scheme that enables landfill operators to contribute money to approved environmental bodies. These organisations use the funding to award grants to community and environmental projects within 10 miles of registered landfill sites. As an incentive, landfill operators can claim a tax credit of 5.3% against their landfill tax bill for 90% of the money they contribute. The scheme is regulated by Entrust on behalf of HMRC. For more information, visit www.entrust.org.uk  or see HMRC’s guide to Landfill Tax. 

Celebrating the Landfill Communities Fund: 30 Years of Turning Waste into Community Wealth

The Landfill Communities Fund (LCF) has been operating since 1996, directing over £1.7 billion from Landfill Tax into more than 60,000 community and environmental projects across the UK. Veolia Environmental Trust has contributed over £116 million of this funding, supporting community spaces, biodiversity initiatives, and climate action projects in England.

The LCF works by bringing together business, government, and communities through a voluntary tax credit scheme. Landfill operators can claim a tax credit for contributions they make to approved environmental bodies, which then fund local projects. This mechanism has proven highly effective at delivering projects with real community, economic, and environmental benefits.

The scheme has funded a wide range of improvements across the UK. Parks and green spaces now provide places for communities to gather. Community centres and village halls have become focal points for social activity and wellbeing. Nature recovery projects have protected species and created urban green spaces. Heritage sites have been preserved, supporting both local history and visitor economies.

The LCF demonstrates what can be achieved when government, business, and communities work together. We urge policymakers to recognise the scheme’s successful track record and the value it delivers to local areas. Continued support for this voluntary tax credit scheme and ongoing business participation in community investment will help ensure communities continue to benefit from this model for years to come.