On April 1st 2022, a new UK plastic packaging tax came into force. But what does it mean for food businesses? Who will be affected and how is the industry responding? This blog takes a closer look…
PPT will apply to any plastic packaging that’s made in or imported into the UK at a rate of £200 per tonne and doesn’t contain at least 30% recycled plastic. Packaging that contains 30% or more recycled plastic will not be chargeable for the tax.
Plastic packaging is used by a variety of food businesses, such as fresh food producers who import plastic packaging to seal their products. So, PPT will have a significant impact. Registration for PPT is compulsory for any business that manufactures or imports more than 10 tonnes of plastic packaging, regardless of the amount of recycled plastic they contain.
Food businesses may have to reassess their record-keeping techniques as they’ll need to provide documentation that show:
You can read the latest guidance from the HMRC by clicking here.
According to the HMRC policy paper, the aim of the PPT is to “provide a clear economic incentive for businesses to use recycled plastic material in plastic packaging”. This will help create demand for recycled materials and, in turn, encourage increased levels of recycling and plastic waste, reducing the amount that ends up in landfill.
There are conflicting views on how the PPT will impact the food industry moving forwards. Barry Turner, Plastic & Flexible Packaging Group Director at BPF (British Plastics Federation) spoke of his concerns in an interview to Aegg: “I don’t feel overly positive in the way that this tax is designed,” said Turner.
“It will increase the cost to the consumer (estimated at £200M) at a time when we are coping with Brexit and the economic ramifications from the COVID-19 pandemic.”
However, food packaging expert Neil Hansford believes PPT can bring in “a new era of innovation” to the food industry.
“This new tax presents a real chance for the packaging industry to think outside the box and develop innovative solutions and new recycling technologies to help plug the gap in the supply of recycled materials,” Hansford told Packaging Gateway.
“Modified Atmosphere Packaging (MAP) is widely recognised as an effective technology, proven to reduce food waste in the industry… what we hope to see with PPT is more of the food manufacturers that require atmospheric protection for their products using more alternative plastics, which are still compatible with MAP. This provides the optimal green solution that would reduce both food and plastic waste.”
Over one hundred companies have signed up to WRAP’s ‘UK Plastics Pact’, which brings together businesses to tackle the plastic waste crisis. Organisations signed up to the initiative have committed to reach four targets by 2025:
You can see the full list of businesses who have signed up by clicking here.
Other initiatives we’ve seen UK food and beverage companies undertake include:
Technology is already being used as a tool to help packaging producers to provide greener options for its customers, as well as minimise food waste. At Columbus, we’ve developed a range of solutions tailored to the food industry which can help you improve accuracy and consistency. If you’re interested in finding out what solutions are available to you, get in touch by clicking on the button below.
From regulatory changes and changing consumer demands to fragmented supply chains, the ability to pivot on demand has never been more important in the food industry. Our guide examines the current state of the food industry, as well as looking forward to the future. Click on the button below to grab your copy.