Packaging tax outlined by chancellor with new focus on plastic

Packaging tax outlined by chancellor with new focus on plastic

New plans set out by Government this week will see the costs of recycling borne by those that produce packaging waste and place it on the market. The changes will make up a key part of the government’s upcoming Environment Bill, to be introduced early in the second session of Parliament.

Defra Environment Secretary Michael Gove.

Currently, according to Government figures, packaging producers pay around 10% of the cost of dealing with packaging waste. By increasing that to cover the full amount, the Government believes it will incentivise producers to think carefully about using less packaging, and to switch to using packaging that is easier to recycle.

Following the overhaul of the packaging regulations, the Government will also explore extended producer responsibility schemes for items that can be harder or more costly to recycle. Plans for a major overhaul of the country’s waste system have been set out in a suite of consultations launched by Defra Environment Secretary Michael Gove.

As well as making businesses and manufacturers pay the full cost of recycling or disposing of their packaging waste, householders will see the existing complicated recycling system simplified. The consultation launched on Monday 18th February focuses on a consistent set of recyclable materials collected from all households and businesses, and consistent labelling on packaging, so consumers know what they can recycle.

The consultations include a proposed tax on plastic packaging which does not meet a minimum threshold of at least 30% recycled content. In addition, a new analysis published yesterday claims that the net benefit to the UK economy, if the changes come into effect, will run into millions.

Michael Gove commented: “Through our plans we will introduce a world-leading tax to boost recycled content in plastic packaging, make producers foot the bill for handling their packaging waste, and end the confusion over household recycling. We are committed to cementing our place as a world leader in resource efficiency, so we can be the first generation to leave our environment in a better state than we inherited it.”

Northern Ireland director at CIEH Gary McFarlane.

The Chancellor of the Exchequer Philip Hammond, also commented on the launch saying: “Plastic packaging makes up two-thirds of all the plastic waste that pollutes this country and wreaks havoc on our environment. It’s our responsibility to do something about it and that’s why we will introduce a new tax on the producers of plastic packaging that don’t use enough recycled material.

“This action, coupled with the other measures we are bringing in, will help drive up recycling, cut the amount of new plastic being used and protect our environment for future generations.”

Responding to the news that the Government has launched a series of consultations covering food waste, plastics, and recycling, the Chartered Institute of Environmental Health (CIEH) has strongly welcomed the focus and called for tangible measures to be introduced as soon as possible. Gary McFarlane, Northern Ireland Director at CIEH, said: “This focus on reducing waste and boosting recycling is a very welcome step forward.”

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