Research by Veolia has found that 77 per cent of British retail and manufacturing businesses remain unaware of the Plastic Packaging Tax, which will be implemented this Friday (1 April). The tax will see a £200 per tonne levy placed on producers or importers of relevant plastic packaging that fails to include at least 30 per cent recycled content.
Conducted by YouGov on behalf of Veolia, the survey revealed the views of British-based senior decision makers across retail and manufacturing businesses on the incoming tax.
The survey found that only a fifth (22 per cent) of the manufacturing and retail businesses asked had already opted for recycled content in their packaging. Of the British retail and manufacturing businesses who had made changes to their plastic packaging, two thirds (66 per cent) stated that they have reduced the amount of unnecessary or avoidable plastic packaging; over half (58 per cent) now use recycled content; 54 per cent have changed the packaging design to make it more recyclable, and 39 per cent have chosen alternative materials to plastic for their packaging.
According to Veolia, far more businesses must reduce their reliance on virgin materials if the UK’s Net Zero goals are to be realised. Their research shows that the majority of British retail and manufacturing businesses also support an escalator in percentage of recycled content threshold (63 per cent) and cost charge (50 per cent) as an incentive to use recycled content.
Veolia Northern Europe Zone Senior Executive Vice President, Gavin Graveson, said;
“The UK’s Plastic Packaging Tax is the right way to start getting businesses to push sustainability up the agenda, but it needs to go further. A tax escalator would make choosing to incorporate recycled content in packaging both economically and environmentally preferable to using virgin materials.
“Not only could the UK save up to 2.89 million tonnes of carbon emissions every year if all plastic packaging included 30 per cent recycled content, it would also incentivise investment in domestic infrastructure which could make the UK a world leader in plastics recycling.”
In February, the Food Packaging Association (FPA) warned that its sector was ‘not ready’ for the Plastic Packaging Tax. A survey of its members showed that nearly 80 per cent were ‘not yet prepared to administer the tax’.
FPA also said that three-quarters of its respondents attended an HM Revenue and Customs (HMRC) PPT webinar and/or read the tax guidance notes, noting that many found the resources ‘unhelpful’. This came a month after HMRC released a list of the types of packaging that fall inside and outside the scope of the tax.
The Plastic Packaging Tax was initially announced in 2018, as part of the Treasury’s Autumn Statement. HMRC had stated that there will be a ‘small number of exemptions to the tax’, and Chancellor Rishi Sunak set a minimum threshold of ten tonnes per year to exempt small businesses from disproportionate charges.
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How will the government and DMOs address the challenges of including glass in DRS while ensuring a level playing field across the UK?
There's no easy solution to include glass in the DRS while maintaining a level playing field. Potential approaches include a phased introduction of glass, potentially with higher deposits to reflect its logistical challenges. The government and DMOs could incentivise innovation in glass packaging design and subsidise dedicated return points for glass-handling. Exemptions for smaller businesses unable to handle glass might also be necessary. Any successful solution will likely blend several approaches. It must address the differing priorities of devolved administrations, balance environmental benefits with logistical and cost implications, and be supported by robust consumer education campaigns emphasizing the importance of glass recycling.