Plastic Packaging Tax Rate Change
The Chancellor’s Budget on 30 October announced an increase in the Plastic Packaging Tax (PPT) rate, aligned with the Consumer Price Index (CPI). Effective from 1 April 2025, the new rate will be £223.69 per tonne for plastic packaging containing less than 30% recycled content that is produced or imported into the UK. For more information, visit GOV.UK.

Plastic Packaging Tax: Mass Balance Approach Consultation
The government has released its response to the consultation on using a mass balance approach (MBA) to account for chemically recycled plastic in PPT. The MBA will be allowed from a future date yet to be confirmed. Additionally, changes will mean pre-consumer waste will no longer be considered recycled plastic for PPT purposes, addressing a loophole. The exemption for packaging licensed for human medicines will continue.

Next Steps
No immediate action is required. The government advised that it will undertake further discussions with stakeholders to help refine the technical details before finalising implementation and publishing draft legislation.

Access the UKFT Guide

UKFT members can request the UKFT guide to the Plastic Packaging Tax by emailing info@ukft.org