Darren Smith, Head of Marketing at Southgate Global, one of Europe’s leading packaging supplier comments: With the Government’s Plastic Packaging Tax (PPT) now in place since April 1, designed to tackle single use plastic, the impact on the industries it applies to will start to unfold.
Originally announced by the UK Treasury in 2018, the tax applies to plastic packaging produced in or imported into the UK, which does not contain at least 30 per cent recycled plastic, only excluding packaging which is not predominantly plastic by weight. The new measure will impact up to 20,000 UK manufacturers of plastic packaging, importers of plastic packaging, business customers of manufacturers and importers of plastic packaging.
The tax was introduced to provide a clear economic incentive for businesses who are not already using recycled material in the production of plastic packaging. In return, creating greater demand for the material and stimulating increased levels of recycling and collection of plastic waste, diverting it away from landfills or incineration.
While the new tax will have an impact on us at Southgate, we are welcoming of the change as it aligns with our wider strategy to increase our volume of sustainable packaging solutions. With the use of virgin plastic dropping, we’re excited to see the benefits as we protect ecosystems, save energy, reduce the demand for raw materials and cut carbon emissions.
By introducing the PPT alone, the use of recycled plastic in packaging could increase by around 40 per cent. This is equal to carbon savings of nearly 200,000 tonnes from 2022 to 2023, based on current carbon factors. So, if we are to reach the Global Climate G7 goals of achieving carbon neutral in the near future, the PPT is a major step in the right direction.
We spent the past year raising awareness of the upcoming tax change and leading the way in providing solutions on how best to prepare. Despite preparation from the industry, many businesses are still only just finding out about the tax and the implications of not complying. Naturally, this has sparked a flurry of movement in the market as companies look to secure recycled plastic.
At Southgate, we have witnessed first-hand an influx of enquiries from customers seeking advice on how to adapt their packaging to fit the new requirements. As driving sustainable solutions is part of our mission and value as a business, we have been more than happy to offer our support as this message has always been a part of the conversation we have with distributors. For those organisations that are yet to introduce a solution, we advise working closely with packaging suppliers who have the knowledge to reduce plastics use in the most cost-effective, and sustainable way.
In the coming months, we’ll be focused on continuing to educate and support our customers and demonstrate the benefits while working with them to develop new products. We plan to continue expanding our range of products to reduce plastic content while increasing users’ productivity and profitability.
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