With new legislation coming into effect in 2022, how is the UK progressing in its attempts to reduce plastic waste, and what impact may DEFRA’s latest consultation have?
Source: The Parliament Magazine
Sizing the Issue: UK Plastic Usage Today
Waste, and in particular the volume going to landfill, has been a significant issue in the UK. In 2018 alone, the UK generated 222.2 million tonnes of waste. According to the ONS, just under a quarter (23.6%), ended up in landfill. A significant part of this is single use plastics, often packaging which is all too readily thrown in the rubbish bin, when in many cases it could be recycled, reused, or even replaced by an environmentally friendly alternative. The government reports that an estimated five million tonnes of plastic are used every year in the UK, nearly half of which is packaging.[i] Of course, as we are all too aware, plastic waste is problematic in that it often does not decompose, lasting centuries in landfill or ending up as litter in the natural environment.
Source: Newsweek
Encouragingly, progress has already been made in tackling single use plastics, as a 2018 UK government report noted: “Existing measures such as the 5p plastic bag charge [introduced in 2015] have brought about the kind of changes in behaviour and attitude that we want to encourage. More than 15.6 billion fewer plastic bags have been used since the charge was introduced.”[ii] There has also been the launch of The UK Plastics Pact which was recognised in recent government coverage on the next steps to tackle plastic waste[iii]. The pact is a collaborative initiative to create a circular system that keeps plastic in the economy and out of the natural environment. The initiative is led by the charity WRAP and has been set up in partnership with the Ellen MacArthur Foundation, it is a coalition whose members cover the entire plastics value chain. It has four ambitious targets for the UK by 2025:
- Eliminate problematic or unnecessary single-use packaging through redesign, innovation or alternative (reuse) delivery model.
- 100% of plastics packaging to be reusable, recyclable or compostable.
- 70% of plastics packaging effectively recycled or composted.
- 30% average recycled content across all plastic packaging.[iv]
What Are the Latest Proposals to Reduce Plastic Use in the UK?
Of course, the drive to reduce plastic usage requires action from government, in order to foster a change in behaviour by both consumers and businesses alike. To achieve this, the government is looking at several measures. Most significant is the upcoming introduction of a new tax on plastic packaging- the Plastic Packaging Tax, or PPT for short. This will be in place in the UK from 1st April 2022. The aim of the tax is to incentivise the use of recycled material in the production of plastic packaging.
According to analysis by PWC: “The draft primary legislation (which was introduced in the Finance Bill 2021) provides that the tax will apply at a rate of £200/tonne on plastic packaging with less than 30% recycled plastic manufactured or imported into the UK (including packaging on goods which are imported).”[v] The government estimates that this will affect up to 20,000 packaging producers and importers, and there are fears smaller firms could see disproportionately heavy taxes as a result.[vi]
DEFRA Consultation Places Single-use Cutlery & Plates Under Scrutiny
Source: OutlookIndia
Announced on 20th November 2021, the Department for Environment, Food and Rural Affairs is looking into whether to extend the ban on single use plastics in England to cover plates, cutlery, and cups. Further, the study is also going to investigate whether other avoidable waste products, such as wet wipes, sachets, and tobacco filters should be banned. Aside from banning the use of plastic in these items, the proposals are also considering mandatory labelling to ensure consumers dispose of them appropriately, as well as heavier charges to discourage use (as we saw with the 5p carrier bag charge). Affects X number of businesses.
Why Do Businesses Need to be Aware?
With the plastic packaging tax in particular, the broad scope of the proposals means that a wide range of companies will be impacted. Further, business will need to register for PPT even if their company does not need to pay the tax, having met the 30% recycled content threshold. With the tax coming into force in April 2022, businesses need to be fully aware of these proposals and must start preparing to meet their compliance obligations.
At first glance it appears that the DEFRA consultation will have an impact on specific industries; proposals to ban single use cutlery, plates and cups will be far more detrimental to operations in the food industry compared with the finance industry. However, ultimately all businesses will need to consider and subsequently address whether these items are used within their operations. We often see such items utilised within offices, or as part of a company’s staff catering options, for example.
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