The budget presented on 30 Oct. by UK chancellor Rachel Reeves contained at least one piece of welcome news: following last year’s HMRC consultation, businesses will be permitted to use mass balance accounting to evidence recycled content in chemically recycled plastic for the Plastic Packaging Tax, ’to support use of and investment in advanced chemical recycling technologies.’
‘The environmental objectives of the Plastic Packaging Tax will remain at the forefront of our consideration whilst implementing this change’, the government assured. It believes that this is the best way to encourage greater recycling of difficult to recycle plastics, such as films, and to enable greater use of recycled plastic in applications where there are other regulatory requirements, such as food packaging. No plastic packaging tax is levied on plastic packaging containing at least 30% recycled plastic.
At the same time, the government is also introducing an increase in the PPT rate in line with the Consumer Price Index inflation for 2025-26. The current rate is £217.85 per tonne. As well, the use of pre-consumer waste as recycled plastic for the Plastic Packaging Tax will be barred, effective from the date a mass balance approach for chemically recycled plastic is implemented.
One of the questions asked in the consultation was how chemical recycling should be defined for the purpose of using a mass balance approach for Plastic Packaging Tax. Based on the responses received from the respondents to the consultation, the government has indicated that the definition of chemical recycling should be ‘technology and process neutral to support innovation and allow for the development of new technologies’ – but exclude products that are used in the production of fuel or the generation of energy. The UK plans to introduce a definition of chemical recycling in line with the proposed definition by the European Coalition for Chemical Recycling, for the purpose of the tax, enabling businesses to use a mass balance approach to account for recycled material produced from any technology or process that meets the definition of chemical recycling.
That said, the government also clearly stated that ‘chemical recycling is preferable to landfill or incineration, but that mechanical recycling is preferable when possible.’
Source: sustainableplastics.com
