UK Budget - new plastics packaging tax

Following today's UK Budget announcement regarding the introduction of a new plastics packaging tax, Chloe Kinner, Wood Mackenzie Research Associate, commented:

"The UK currently recovers or recycles just under 50% of plastics packaging, making it a middling performer in European terms . By increasing the price of virgin plastic relative to recyclate, this tax - once introduced in April 2022 -will help to incentivise more responsible sourcing and production.

"However, further progress is required on collection, as more investment is needed in sorting and processing plastic material. The industry will need to continue to invest in new technologies, such as chemical recycling, to fully deal with the issue."