From 1 April, rogue operators handling waste illegally will have to pay landfill tax.
This builds on the extensive action the Environmental Agency is already taking to shut down these sites due to the harm they cause to the environment, by removing the financial incentive to set them up in the first place.
This will also ensure that honest businesses in the industry who pay the tax they owe are not disadvantaged by unfair competition.
Andrew Jones, Exchequer Secretary to the Treasury said:
Illegal waste sites are a blight on communities and undermine legitimate landfill operators. We have listened carefully to concerns raised by businesses and local communities and we are taking action to tackle this crime.
HMRC will be able to prosecute these illegal operators where necessary, who could face large fines and risk a sentence of up to 7 years in prison.