Waste crime: a growing concern

The UK Government, through various agencies, is intensifying efforts to combat this activity with HMRC recently issuing ‘nudge letters’ to businesses asking them to review their waste management processes.

A recent webinar, run jointly by HMRC and the Environment Agency, included examples of common types of waste crime which we have discussed below, alongside an overview of waste crime and the risks it causes businesses.

Waste crime involves illegal activities related to the disposal, treatment, and waste management of waste. This includes unauthorised dumping, burning and mismanagement of waste materials. 

The perpetrators of waste crime can range from individuals and small businesses to organised crime groups, and there are a number of ways criminal groups make money from waste:

• Dumping and illegal waste sites – perhaps the most common example of waste crime, a waste management business charges to take away someone’s waste and then dumps it nearby rather than taking to an authorised waste site.  On a small scale that could be dumping in a field or on a roadside, but in some cases crime groups will rent commercial buildings and fill them with waste before disappearing.  Local councils are responsible for small-scale fly tipping on public land, but the responsibility for dealing with waste on private land rests with the landowner
• Misdescription of waste – tariffs for disposing of different kinds of waste in landfill have been deliberately designed to encourage the use of better options like recycling, with higher rates applying to more polluting materials.  If waste is misdescribed as being less polluting, criminal groups can generate a large profit margin from disposing of waste illegally that someone has paid to have processed properly
• Illegal export – some types of clean waste can be legally exported to other countries for processing without prior approval and with little paperwork, again meaning money can be made by exporting misdescribed waste

While most businesses would not knowingly use illegal waste management firms, if it is discovered that the waste supplier your business uses, or a company you rent land or premises to, is disposing of waste illegally you may be jointly and severally liable for the landfill tax, and any interest and penalties.

Under joint and several liability, the responsibility lies with both the person who actually makes the disposal and any person who knowingly causes or facilitates the disposal to be made.

The test for knowingly causing or facilitating the disposal can encompass circumstances where the business should have known that waste crime was involved. This could include the following:

• The waste broker or dealer
• The waste haulier involved in the transport of the waste to the unauthorised site
• The landowner
• The waste producer
• Any company officer

There may also be significant reputational damage if your business is found to be involved, however remotely, in waste crime.

Business should be satisfied that waste companies they are engaged with are a legitimate business and should consider the following in relation to their waste management processes:

• Carry out due diligence – each business must decide what is appropriate depending on their circumstances
• Stay informed – keeping up to date with waste regulations and industry best practices will help you make informed decisions
• Regularly review your waste management processes – ensure that waste is tracked and records kept

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