The UK government plans to raise the Plastic Packaging Tax in line with the Consumer Price Index (CPI) from April 1, 2024, according to the Autumn Statement. This move aims to stimulate businesses to use more recycled plastic in packaging, fostering greater demand for recycled materials and promoting recycling initiatives. There’s a proposal to introduce an escalator to the tax rate and set a minimum recycled content threshold in the future.
The tax, introduced in April 2022, seeks to align with environmental goals and reduce plastic waste by encouraging sustainable packaging practices. The new rate will be £217.85 per tonne, effective from April 1, 2024. The measure is not anticipated to have a significant impact on the economy or individuals, households, and families.