Businesses urged to get ready now for new tax

Amy Clucas

AHEAD of the introduction of the Plastic Packaging Tax in April 2022, Southgate Packaging is urging businesses to take the necessary steps to prepare – and avoid incurring additional costs.

The tax will apply to plastic packaging produced in or imported into the UK, which does not contain at least 30% recycled plastic, only excluding packaging which is not predominantly plastic by weight.

Amy Clucas, assistant buyer at Southgate, said, “The new measure is estimated to affect up to 20,000 producers and importers of plastic packaging and is predicted to have the highest impact on the waste and recycling sector since landfill tax was introduced.

“This is because, from April next year plastic packaging which is produced in or imported into the UK will be subject to a plastic packaging tax of £200 a tonne if it does not contain at least 30% recycled plastic.

“If you are a smaller producer this could have a serious impact on your cash flow.”

Southgate Packaging has been developing sustainable solutions, including a range of paper mailing bags which uses 100% virgin kraft paper sourced from sustainable forests.

Amy added, “There are many alternatives to plastic packaging firms should consider. These include water activated tape as a sustainable alternative to its polypropylene or vinyl counterparts. For mailing there are also paper mailing bags, which are an environmentally friendly way to support e-commerce.

“It is vital that firms use new, sustainable packaging systems, such as air pillows and cardboard void fill.

“As we look to 2022, we are focusing on the benefits this will have not only on generating a more circular economy, but how it will help businesses align with consumer expectations, right from the start of the supply chain to the end user.”

Amy is recommending that businesses start preparing ‘immediately’ by collating a list of packaging containing plastic material, specifying the amount of recycled content and reviewing alternatives if needed.