The latest HMRC data this morning (23 May) reveals that the Plastic Packaging Tax (PPT) has raised a total of £263 million through the first 10 months of the scheme.
It means that the Tax has already significantly exceeded HMRC targets with the government estimating the tax would generate £235 million in its first 12 months – which was predicted earlier this year.
Steve Gough, Chief Executive Officer at Valpak, provider of environmental compliance and part of Reconomy Group, commented: “The figures from HMRC this morning reveal that the government has raised substantially more than anticipated in the first year of the PPT.
The figures from HMRC this morning reveal that the government has raised substantially more than anticipated in the first year of the PPT.
“It is promising to see government action aimed at combatting the use of virgin plastics to drive greater circularity throughout the UK economy. Increased awareness around packaging compliance and growing regulatory demands will help nudge businesses towards making the changes needed to achieve sustainability targets.
The UK government recently announced that it will consult on reforming the PPT to encourage investment in chemical recycling later this year (2023). The consultation will garner feedback on whether to allow a “mass balance approach” for calculating the proportion of recycled content in chemically recycled plastics for the PPT.
Commenting on the statistics, Gough was also positive about the possibility of the government adopting a mass balance approach. He said: “It is promising that the government has already suggested amendments to PPT to make the system simpler and more effective by using a ‘mass balance’ approach to calculate the percentage of chemically recycled content included in plastic packaging.
“The proposals also aim to encourage further innovation and investment into chemical recycling for long-term, sustainable solutions.”
It is promising that the government has already suggested amendments to PPT.
Following the Spring Budget on 15 March, CIWM called for the funds raised from the PPT to be ring-fenced and invested in UK infrastructure for plastic recycling.
Environmental compliance data specialist Ecoveritas also called on the government to clarify how the funds raised from the PPT will be used. Ecoveritas’ Commerical Manager, Josh Corradi-Remi, said the funds generated by the PPT present an opportunity to build a “world-beating recycling infrastructure that can provide high-value, high-quality recycled materials to reduce dependency on virgin materials”.
CIWM, the membership organisation representing resource and waste managers, said ring-fencing the funds raised from the tax would also create new job opportunities and reduce the UK’s reliance on plastic imports.