Plastic packaging tax - chemical recycling and adoption of a mass balance approach

On 18 July 2023, the previous government published a consultation entitled ‘Plastic Packaging Tax – Chemical recycling and adoption of a mass balance approach’. The consultation ran for 12 weeks and received 91 responses from a variety of respondents, including trade bodies, businesses, and non-governmental organisations.

The consultation sought views on the case for allowing a mass balance approach for accounting for chemically recycled plastic in the Plastic Packaging Tax and the controls needed to ensure the integrity of the tax. It also sought views on the removal of pre-consumer waste from the definition of recycled plastic and the exemption for the immediate packaging of human medicines.

A full summary of responses and the government response is available here. The government response confirms that a mass balance approach will be allowed to account for chemically recycled plastic for the purpose of Plastic Packaging Tax. It also confirms that when the changes to allow a mass balance approach are introduced, pre-consumer waste will no longer be classified as recycled plastic for the purpose of Plastic Packaging Tax. There will be no change to the exemption for the immediate packaging of human medicines for the foreseeable future.

The summary of responses includes the detailed government response to the high-level requirements for using a mass balance approach. The government will undertake further technical engagement before confirming when the changes will take effect and publish draft legislation for technical consultation.