BPF Condemns the Budget’s Discriminatory Proposal for a Charge on Plastics Bags

Plastics Carrier Bags

The Chancellor has decided to ignore his own government’s Courtauld Agreement with major food retailers, to reduce carrier bag use by 25%. This agreement has been working well since we know that use of thin carrier bags reduced by almost 8% last year. Peter Davis, Director General of the BPF and spokesman of the 8 Associations said, “In his budget statement the Chancellor has also chosen to ignore the fact that, by his own government’s figures, between 70%-80% of plastic carrier bags are re-used. Even Hillary Benn, the DEFRA Minister, admits that the carbon impact of plastic carrier bags is minimal."

Davis continued, “What about paper bags? Paper bags have a much bigger environmental footprint with heavy use of energy and water in their production. You see more fast food paper bags littering London’s streets than you do plastic. What about biodegradable plastic bags, we need some clarification on this.”

Fuel Duty

The 8 Associations welcome the Chancellor’s decision to delay until October the 2p per litre rise in fuel duty, originally planned for April. This delay was called for in their letter to the Chancellor in February because the member companies of the Associations are also being hit by high oil prices that hit $108 for Brent Crude yesterday. The Associations may call for the October rise to be delayed further if the oil price remains high.

Capital Gains Tax (CGT)

The 8 Associations asked the Chancellor not to proceed with the 80% increase in the CGT rate for small firms, up from 10% to 18%. Peter Davis stated, “We are disappointed the Chancellor is proceeding with this and we view it as a set back for our small entrepreneurial companies.”

Skills Needs

We welcome the £10 million towards improved science teaching to increase the number of young people studying science; however the sum of money pledged is not very high. We also welcome moves to encourage unemployed people on benefits back into work.

Climate Change Levy (CCL)

The 8 Associations urged the Chancellor not to increase the unpopular and unfair CCL, which harms the competitiveness of our member companies. “This Levy is particularly unfair when in competition with French companies where there is no industrial energy tax” said Peter Davis.

Public Sector Borrowing

Peter Davis expressed his unease over plans for Government spending saying, “It is deeply concerning that the plan for next year’s borrowing is to increase it to £43 billion at a time when the economy is clearly entering a slow-down. We feel the Government should take urgent action to curb public spending because Britain has the biggest cyclically adjusted deficit of any EU member state.”

ENDS

For further information on this press release, please contact Philip Batten, British Plastics Federation, 6 Bath Place, Rivington Street, London, EC2A 3JE, tel 020 7457 5000, fax 020 7457 5045, email: [email protected]

Notes for editors

1) British Plastics Federation (BPF) is the UK trade association for the plastics industry – representing the whole supply chain including polymer producers, distributors, additives suppliers, machinery manufacturers, processors and recyclers.

2) The Eight Associations are:

British Plastics Federation, BPF

British Rubber & Polyurethane Products Association, BRPPA

British Coatings Federation, BCF

Packaging & Films Association, PAFA

Gauge & Toolmakers Association, GTMA

Polymer Machinery Manufacturers & Distributors Association, PMMDA

Scottish Plastics & Rubber Association, SPRA

Northern Ireland Polymers Association, NIPA