2024
Key Policy Requests
For the UK Plastics Industry
Key Policy Requests:
The British Plastics Federation (BPF) has 3 key policy asks for the new government.
i. Recognition as a foundation industry
ii. Improve the management of used plastic
iii. Develop long-term competitiveness
““Like all major industries with complex stakeholder networks in a rapidly changing world, we require government cooperation to effectively address issues such as the management and recycling of used plastic, and accessing the best talent, technology and new markets.”
Philip Law, BPF Director General
i. Recognition as a foundation industry
• The BPF is calling for the plastics sector to be recognised as a ‘foundation industry’.
• This is a term the UK government uses to identify industries that are vital to manufacturing and construction. These currently include the cement, glass, ceramics, paper, metals and bulk chemicals industries, and the BPF believes that the plastics industry has an indisputable claim to be included amongst their ranks. Plastics are used in almost every sector of the UK economy and virtually all areas of manufacturing and distribution as well as being strategically important for national and economic security and an important part of the UK’s net zero journey.
ii. Improve the management of used plastic
• The BPF is calling for reforms to help the plastics industry reach its potential while improving circularity. We would like to see the UK’s plastic recycling infrastructure expanded and improved from funds raised by the Plastics Packaging Tax (PPT).
• The BPF is calling on the government to accept the mass balance accreditation method, so that materials that have
been chemically recycled can be counted as recycled material within the Plastics Packaging Tax.
• The BPF is calling on the government to accelerate its plans to reform and improve waste collection, as well as implementing a Deposit Return Scheme. Clarity on Extended Producer Responsibility is also sought.
• Enforcement of the PPT to stop fraud and an urgent review of food contact material regulations are both needed.
iii. Develop long-term competitiveness
• Having experienced a skills gap for many years, the BPF is calling on the new government to provide support for businesses struggling to source appropriate expertise and to review the effectiveness of the apprenticeship levy.
• The BPF is calling for regulatory alignment with the EU, where it makes sense, so that trade barriers are minimised.
• To support the growth of international trade, the BPF is calling for the re-introduction of funding to support businesses in attending overseas tradeshows.
• To assist with improving productivity and reducing carbon emissions, the BPF is calling on the government to provide more grants to help companies access more energy-efficient machines.
i. Recognition as a foundation industry
Recognise the UK plastics industry as a Foundation Industry that is strategically important for national and economic security. Recognition as a Foundation Industry would not only give our sector the recognition it deserves but also boost recruitment. The negative tone from government towards plastics contributes to long-term vacancies that are damaging the growth of this key UK manufacturing sector.
Plastic is used in virtually all areas of manufacturing and is strategically important for national security
The UK is heavily reliant on the importation of raw material and it is critical that the UK continues to produce (or recycle domestically) plastic raw material to ensure the material can be used at times when national security is threatened. Currently the UK produces less than half of the polymer it consumes, which is significantly behind many of our counterparts around the world.
During the COVID-19 pandemic the UK plastics manufacturing infrastructure played a key role in ensuring the nation could fight the pandemic. Prior to COVID-19, less than 1% of PPE was manufactured in the UK but by December 2020 domestic supply reached 70%.
The UK Plastics Industry at a Glance
Plastics are used in almost every sector of the UK economy including automotive, aerospace, construction, defence, energy, electrical and electronic, healthcare, food and drink, and agriculture. None of these sectors could function effectively without plastics.
Every job created in the plastics industry results in an additional 1.64 jobs in the wider economy: in manufacturing, commerce, transport, real estate, R&D and other services.
Top 3 Largest
MANUFACTURING SECTORS IN THE UK (BY EMPLOYMENT) 2 3 1
Top 10
PLASTICS ARE AMONG THE UK’S TOP 10 EXPORTS
3.5
MILLION TONNES PLASTICS MATERIALS PROCESSED
150,000 PEOPLE DIRECTLY EMPLOYED
1.7 MILLION TONNES PLASTICS MATERIALS PRODUCED
400k
TOTAL EMPLOYMENT INCL. INDIRECT JOBS
£28.7bn PLASTICS INDUSTRY TURNOVER
5,700 COMPANIES IN THE PLASTICS INDUSTRY
ii. Improve the management of used plastic
Stop PPT Fraud: The PPT needs to be enforced correctly and efficiently to stop fraud.
The tax has not been an incentive as the amount of recycled packaging has increased from 50% in 2022 to 52% in 2023 (in line with previous years). Imported material is being sold as containing 30% recycled content with little or no proof.
The UK industry fears that this is not a level playing field and the PPT has distorted the market. Proof can only be provided through a paper trail, which is relatively easy to falsify. Better policing is needed!
We need the internationally recognised standards EN15343:2007 and ISO2209 to be introduced within the tax for a mandatory check on certification of the recycled content.
1.7M
MILLION TONNES PLASTICS PACKAGING IS MANUFACTURED IN THE UK
1.5M
MILLION TONNES OF PLASTIC IS IMPORTED INTO THE UK
FCM Regulations: An urgent review of the UKs Food Contact Materials regulation
• Urgent review needed of the FCM regulations for the devolved nations.
• Ensure alignment with the EU.
• GB is still using 282/2008 regulations which are outdated.
Updating the regulations will help increase the demand for recycled material and subsequently increasing circularity.
HMRC figures: 1.7million tonnes of plastic packaging manufactured in the UK, 33% of which was exported whilst 1.5million tonnes were imported. The EU remains as the UKs largest trading partner so alignment is essential.
Both avoid paying Plastics Packaging Tax (PPT)
Packaging Reforms: Accelerate the reform of the waste collection and packaging legislation and maximise its effectiveness.
Extended Producer Responsibility
Ensuring that businesses understand their responsibilities and develop packaging formats that are recyclable.
Deposit Return Scheme
A consistent UK-wide DRS scheme, including the material type, size of containers and fee structure, is needed to increase recycling rates.
Simpler Recycling
Ensure there is the sorting infrastructure to prevent the mixing of paper and card, plastic, glass and metal.
Chemical recycling: Accept mass balance as a calculation method for the Plastic Packaging Tax to permit the scaling up of chemical recycling in the UK with a fuel exempt allocation method.
Mass Balance
Recycled feedstock = product attributed recycled content (product D) minus losses.
Lack of acceptance of mass balance in the UK is preventing companies from investing in facilities. Industry needs a quick and definitive response to the recent consultation.
Mass balance allows the attribution of the ‘recycled characteristic,’ to one or several output products.
ii. Improve the management of used plastic
Recycling infrastructure: Enable the expansion and improvement of plastic recycling infrastructure by investing funds raised by the Plastic Packaging Tax.
Recycling infrastructure continues to evolve
Increase Recycling Infastructure
Funds raised from PPT is invested back into the industry
UK recycling infastructure grows
Funds are taken from Plastic Packaging Tax (PPT)
The aim of the tax is to increase recycling but there is a shortfall of recycling capacity in the UK and concerns about uncontrolled imports and exports of waste.
Tax funding should be ring-fenced and reinvested into the plastics recycling infrastructure and associated research.
Plastics have a critical role to play in enabling the UK to achieve its objectives of becoming net zero by 2050. This is because plastics artefacts are light in weight, durable in use and have outstanding insulation properties. The industry wants to work with government to achieve Net Zero goals.
iii. Develop long-term competitiveness
Skills: Additional support for businesses to replace lost expertise and a further review of the effectiveness of the apprenticeship levy for manufacturers.
With the plastics industry having experienced a skills gap for many years, the BPF would like the government to provide support for businesses struggling to source appropriate expertise, while also reviewing how effective the apprenticeship levy has been.
Energy costs
Energy: More grants are needed for the deployment of energy-efficient machines to assist industry’s decarbonisation, productivity and competitiveness.
The threat of rising energy costs remains a major concern for BPF members. Ensuring there are grants in place to help the transition to a low carbon economy is essential to businesses.
CO2
CO2
Trade: To support the growth of international trade, re-introducing funding to support businesses wishing to attend overseas tradeshows is also necessary.
The lack of clarity on regulatory alignment is damaging UK businesses manufacturing products for both the UK and EU markets.
The EU remains the UK’s largest trading partner (for the plastics industry) with over 64% of our entire trade value.
UKCA marking is one example where divergence has added costs, delays and barriers to industry.
Industry is calling for a strategic and operational approach to growing export trade. It is vital that the trade show support programme is redeveloped .
The UK Plastics Industry
The UK plastics industry is bristling with opportunities to take the UK forward in so many areas and this document sets out the policy requests we would like to work in partnership with politicians to grow this UK manufacturing sector that is so critical for national and economic security.
The British Plastics Federation
Founded in 1933, the BPF represents the third largest manufacturing sector in the UK with over 150,000 employees.
With a turnover of over £28.7bn, and one of the top ten UK exporting sectors, the BPF has 600 members who between them represent the entire plastics industry supply chain. This includes raw materials (polymer producers and additive suppliers), processors (moulders, packaging companies and pipe/windows manufacturers), recyclers/waste management companies and equipment suppliers.
Location of Plastics and Rubber Firms in the UK
