The latest government budget is sure to have an effect on the repacking business, as a new tax on virgin plastics is hoped to push more businesses to consider sustainable alternatives, according to MRW.

Chancellor Phillip Hammond announced the tax in his autumn budget, explaining that finances raised from the tax would be put back into action against single-use plastics, and would also be used to fund the UK’s waste management systems.

He said the new tax would include “the manufacture and import of plastic packaging which has less than 30 per cent recycled plastic content”, because of the 2.26 million tonnes of plastic packaging used in the UK each year, the majority is virgin plastic because of the higher cost implications related to recycled materials.

Although announced within this year’s budget, the treasury made it clear that it would not come into effect until April 2022, after a period of consultation.

TIt is hoped that the tax will provide a clear financial incentive to make the switch from virgin to recycled plastics, and that the tax would launch alongside a new scheme aiming to encourage packaging producer responsibility.

As part of the push on tackling the plastic problem, Mr Hammond also announced he would be committing £10 million on further plastic research and another £10 million on innovations in recycling processes.

The tax on packaging was chosen over the likes of an introduction of an incineration or landfill tax, as the government says it wants to encourage a sustainable recycling effort as much as is possible.