The budget included updates on Plastic Packaging Tax, Landfill Tax, and fuel duty.
The government confirmed that mechanically recycled plastic used in plastic packaging will be subject to mandatory certification for the purposes of PPT from 2030.
Landfill Tax will increase at the standard rate, with funding also being provided to cover tax liabilities from the planned clearance of six illegal waste sites.
Read the full story on the Autumn Budget here and see how the industry has responded below.
British Plastics Federation (BPF)
Philip Law, Director General of the BPF, said: “This Budget offers manufacturers welcome relief, with lower electricity costs and an extension of tariff relief on key inputs. Independent checks on mechanically recycled plastic are also welcome, but 2030 is too late when recycling sites are closing now.
“Chemicals and ceramics have dedicated support funds; plastics, the UK’s third largest manufacturing sector (by employment), has none. The government must recognise plastics as a foundational industry and give even more help to firms in replacing ageing machinery so that we can play our full part in rebuilding British manufacturing.
“The BPF looks forward to working with government to turn these measures into sustained growth, greater resilience and high-quality manufacturing jobs across the UK.”
Anaerobic Digestion and Bioresources Association (ADBA)
Chris Huhne, Chair of ADBA, said: “The Chancellor is right that Britain must break its exposure to volatile global gas prices, but missed a trick on home-grown green gas made on British farms and in British towns. Today the government found money from general taxation for hydrogen, yet left biomethane, which is a proven technology heating homes right now, waiting on a single decision.
More than a dozen plants are ready to build with far better value for money than hydrogen. Lift the cap now and they will be producing gas for British homes, not leaving us reliant on imported LNG.”
British Soft Drinks Association (BSDA)
Andy Bagnall, Director General at BSDA, said: “With our members already facing significant economic headwinds, we welcome the Budget measures that provide breathing space for businesses and consumers, particularly business rates relief for hospitality and the high street. Soft drinks are integral to UK high streets, accounting for one in five convenience store purchases.
“We had hoped to see movement on the decision to apply VAT to unredeemed deposits under the UK’s Deposit Return Scheme, which launches in 11 months’ time. Applying VAT could divert funding away from recycling infrastructure and increase costs for consumers. The BSDA has pressed ministers on this issue for several years, and will continue to push for progress in the coming weeks.
“It’s positive that the Budget made no changes to the Plastic Packaging Tax (PPT), including its rates and thresholds. The tax’s effectiveness should now be reassessed as part of a wider review of packaging policy, ensuring that it works alongside the Deposit Return Scheme, that the Packaging Recovery Notes system is overhauled, and that hospitality businesses are not paying twice for packaging waste management.”
Washed Aggregates Trade Association (WATA)
Andy Hill, CEO of WATA, said: “Fuel duty is an important part of the picture, but keeping the washed aggregates sector financially viable requires a broader approach. Businesses need confidence that they can invest in their facilities, that the regulatory framework supports the recovery and reuse of materials, and that there will be a strong market for the products they produce.
“Government can help deliver that through targeted investment support and by requiring a minimum of 35% washed recycled aggregates in publicly funded infrastructure projects. This would support responsible recycling businesses, help create greater certainty for investment and conserve natural resources by keeping valuable materials in circulation.”
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