Autumn Budget 2018 Announces Plastic Tax

Houses of Parliament

This week the Chancellor Philip Hammond delivered the Autumn budget to parliament, setting out the nation’s finances. Towards the end of the 70-minute speech, Hammond introduced a new tax on plastic packaging, ruled out the so called “latte levy” and declared that the UK will “become a world leader in tackling the scourge of plastic littering our planet and our oceans.”

Plastic Packaging Tax

“We will introduce a new tax on the manufacture and import of plastic packaging which contains less than 30% recycled plastic… transforming the economics of sustainable packaging. We will consult on the detail and implementation timetable.”

The tax on plastic packaging will apply to items containing less than 30% recycled plastic, and is set to come into effect from April 2022. The tax is subject to consultation, and will likely need to include exceptions for certain products such as medical items and draw guidelines for the categorisation of recycled materials for imported products.  

Read more : Budget 2018, Environmental Tax 3.56 (page 48).

Latte Levy

Hammond ruled out the proposed tax on disposable cups, following a consultation on the issue which concluded that a charge wouldn’t drive significant consumer behavioural change. However the tax will be reconsidered if there isn’t enough industry progress on improving the recyclability and use of plastics in single use and takeaway beverage cups. 

Reform of the Packaging Producer Responsibility System by the Environment Secretary was also announced in the budget, as was the introduction of a tax on the incineration of waste, in conjunction with landfill tax. 

Read more : Budget 2018, Environmental Tax 3.58 and 3.59 (page 49). 

Video starts 56 minutes into the speech, as Hammond begins the section on plastics and environment. 

Here at Coda Plastics, we recycle all of our waste and acheive close to 0% waste in our manufacturing operations. Many of our products already contain more than 30% recycled material and we are able to provide all of our standard packaging products in PCR. Get in touch to discuss how we can help you improve the sustainability of your products and packaging, call 01692 501020 or email

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