Plastics: Packaging

Treasury written question – answered on 19th January 2022.

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Photo of Ruth Jones Ruth Jones Shadow Minister (Environment, Food and Rural Affairs)

To ask the Chancellor of the Exchequer, whether revenue generated from the tax on plastic packaging will be used to fund the UK’s recycling and collection infrastructure in order to increase the supply of food contact grade recycled material in advance of (a) deposit return schemes and (b) reforms to extended producer responsibility being introduced.

Photo of Helen Whately Helen Whately The Exchequer Secretary

The Plastic Packaging Tax will provide a clear economic incentive to use recycled material in the production of plastic packaging. This will create greater demand for recycled material and, in turn, stimulate increased levels of recycling and collection of plastic waste. As set out at Budget 2018 when the tax was first announced, future revenues raised from the tax will enable investment to address single-use plastics, waste and litter.

Alongside this, the government’s commitments in the Resources and Waste Strategy will help to stimulate private investment in reprocessing and recycling infrastructure. The introduction of a Deposit Return Scheme for drinks containers alongside Collection and Packaging Reforms such as Extended Producer Responsibility for packaging and consistency in household and business recycling in England are expected to increase and incentivise appetite for commercial infrastructure investment.

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