THE Food and Drink Federation has welcomed HMRC’s decision to allow companies to use mass balance accounting in calculating recycled content for the Plastic Packaging Tax.
Responding to the UK chancellor Rachel Reeves’ first budget since Labour’s General Election victory earlier this year, Jim Bligh, director of corporate affairs and packaging at the Food and Drink Federation, said driving investment and growth is ‘critical’ to ensuring the continued success of the UK’s largest manufacturing sector, and protecting food security, adding that the organisation welcomes the chancellor’s focus on a ‘consistent, long-term approach to tax and regulation’.
“As a critical advanced manufacturing sector, we stand ready to work with government to make the most of this support,” he added. “Boosting investment in R&D will help the industry to create jobs, drive innovation, and grow export opportunities – resulting in a stronger industry that underpins the nation’s food security.
“Food and drink manufacturers want and need a circular economy for packaging recycling, so it’s great news that the government will enable companies to use mass balance accounting. This important change will open up new markets for advanced recycling in the UK, creating green jobs and investment opportunities, while increasing the amount of recycled content used in food-grade packaging.”
Biffa CEO Michael Topham released a statement highlighting the plastic packaging tax and how it will help reduce plastic in the UK. He said the budget was an important opportunity for the government to drive investment in a fair transition to a greener, circular economy.
“What we have seen are very positive moves from ministers to back capital spending in all parts of the economy and to provide a stable policy environment for investors, but we believe the announcements today could have gone a lot further,” he added. “For example, we welcome the decisions made about Landfill Tax rates and to support the increase in the Plastic Packaging Tax (PPT) rate for next year in line with inflation set out today. However, we believe that to deliver a step-change in demand for recycled plastic, a progressive PPT is essential. Biffa has campaigned for this change for years and we will continue to raise it with the government.
“Similarly, although the budget makes clear that the government wants to increase uptake of electric vehicles, we’re disappointed the budget didn’t offer significant new backing for decarbonising commercial road vehicles. We very much want to transition more of our collection fleet of HGVs to alternative fuels. To deliver this, we need a policy framework that will drive investment in grid upgrades and accelerate progress on HGV electrification.”
Budget announcements included a rise in employer National Insurance contributions from 13.8% to 15% in April 2025, and a 6.7% increase in the national minimum wage to £12.21 an hour from April.
Sian Sutherland, co-founder of A Plastic Planet & Plastic Health Council, also responded to the budget, claiming that the investment in carbon capture technology is ‘nothing more than a fig leaf to the oil giants’.
“Show me the balance sheet that proves it’s possible to have a healthy economy on a dying planet,” she added. “Prime Minister Starmer pledged his government would ‘choose a different path’ with the budget to rescue the years of Conservative derailment, yet we have seen more short-sighted policy choices which keep us in a cycle of planetary vandalism.”
Jane Martin, CEO of City to Sea, called for the government to incentivise businesses to expand existing reuse and refill packaging initiatives.
“The cost of the plastic problem should make Reeves’ eyes water,” Jane Martin said. “For a product that is used once, councils pay millions in collection, sorting, and waste management, plus the £1 billion spent per year dealing with littering.
“Through comprehensive policy measures including further plastic bans, alongside legally binding reusable packaging targets, the government would incentivise businesses and retailers to expand existing reuse and refill packaging initiatives and end the reliance on polluting single-use plastic packaging.”
