As part of its budgeting process, the UK recently announced a new tax on single-use plastics (both domestic and imported) that will apply to plastic packaging that does not have a minimum of 30% recycled content. Scheduled to take effect on April 1, 2022, the tax is designed to provide an economic incentive for businesses to use recycled material in the production of packaging which in turn will create greater demand for this material.
In addition to the tax, the budget proposal includes £20m to tackle plastics and boost recycling. About £10 million will be dedicated to R&D to help businesses to transition away from polluting plastics by funding research into new packaging materials, new recycling processes, and smarter plastic and packaging waste management. Another £10 million will go toward initiatives to boost recycling and minimize litter, such as installing “smartbins” on streets.