Foundry and engineering group Chamberlin is set for a £500,000-a-year boost as a result of new landfill taxation announced in the Budget.

The 120-year-old Walsall-based firm made a strong case to Government not to increase tax on their waste and said it was better off for the announcement that used foundry sand will continue to qualify for the lower rate of landfill tax.

Minister for Business Pat McFadden visited the firm’s iron foundry yesterday, and said the move would mean millions more to the foundry industry.

Chamberlin’s chief executive Tim Hair said: “I am delighted that the Government has listened to the case made by Chamberlin and others in the foundry industry.

“Chamberlin exports over 70 per cent of our production and the additional costs would have damaged our competitiveness.

“We continue to win export business and this decision helps to secure the future of the foundries and their employees.”

Mr McFadden said the Government investigated the environmental issues and associated costs involved in recycling the used sand, a by-product of the foundry process.

The Government concluded that the sector should remain on the lower rate.

He said: “Manufacturing is the heart of the Black Country and companies like Chamberlin are very important to the area. They made a good case to Ministers about used foundry sand and the cost of potential tax changes on this material and I am glad to say that the Budget announced that it would continue to be charged at the lower rate.

“This is good news for Chamberlin and good news for the foundry industry in general. It will save millions of pounds across the industry and it’s important that we keep supporting manufacturing.”