Government announcement on PPT and the Collection and Packaging Reforms

On the 2nd May HMRC wrote to the British Plastics Federation (BPF) about mass balance within the Plastic Packaging Tax (PPT). They confirmed that they intend to implement the change to the PPT to include mass balance from April 2027 with the legislative process starting in the Finance Bill 2025/26. This is sooner than the initial time given of up to 4 years. Alongside allowing mass balance, pre-consumer waste will no longer be allowed as a source of recycled plastic from the same date.

At the Circular Economy Joint Stakeholder Forum the following week (6th May), Defra made further announcements linked to the Collection and Packaging Reforms. These are explained below. 

Extended Producer Responsbility (EPR)

• Amendments will be made to the Statutory Instrument (SI) to give powers to appoint a Producer Responsibility Organisation (PRO) for EPR who will take over duties from Pack UK except where there are sovereign duties
• Offsetting for closed loop recycling systems
• Further planned work to improve EPR will include:

- The approach to dual-use packaging (e.g. hh and C&I packaging)
- Efficiency and effectiveness of local authority services
- Clarity on litter – with DRS coming in, pEPR payment won’t cover litter and street bins waste in England and Northern Ireland but this will be looked at again. It will in Wales and Scotland.

Supporting Infrastructure

• Reforms will be made to the PRN system aiming to stabilise the market, reduce volatility and reduce exports of plastic waste. A consultation on this will be released this year
• Circular Economy Finance Coalition to explore how to boost investment in critical infrastructure and technologies will be set up

Deposit Return Scheme (DRS)

• The Deposit Management Organisation has been appointed which is UK DMO

 The Circular Economy taskforce will also begin their work consulting with stakeholders on the priority area of ‘plastic and chemicals’. This will start with a webinar on 16th May which the BPF will be attending.

The BPF will continue to engage with Defra and HMRC on all these topics.