Non-recycled packaging tax will create big hurdles, say analysts

A new tax on the manufacture and import of plastics packaging that contains less than 30 per cent recycled plastics will be costly and technically challenging, claims industry consultant Wood Mackenzie.

Companies in the UK failing to reach 30 per cent recycled content will be taxed from April 2022, finance minister Philip Hammond said in the government’s budget today.

The tax is subject to consultation but aims to reduce waste and help tackle climate change, said the government. Hammond said that it provides a clear economic incentive for companies to use recycled material, which in turn will create greater demand for the material.