Proposed peat ban does not raise major concerns for businesses

The OIM has published its first report, which found that the UK Government’s proposal to ban the sale of horticultural peat in England from 2024 would not have a major impact on intra-UK trade.

Horticultural peat is mainly used in multi-purpose compost. The market for compost is worth around £400m in the UK.

The report follows a request from the Secretary of State for Environment, Food and Rural Affairs for the Office for the Internal Market (OIM) – which sits within the Competition and Markets Authority (CMA) –to examine how the proposed ban may impact the effective operation of the internal market. The proposed ban is intended to tackle climate change by protecting peat bogs that are an important store of carbon.

The report concludes that, while the ban on horticultural peat sales in England may lead to some changes in patterns of buying and selling of peatcontaining compost within the UK that could have an impact on individual businesses, these are likely to be modest in the context of the overall market. The OIM does not expect there to be a signifi cant impact on wider competition within the compost market.

Nevertheless, the report also notes that there may be some sales of peat-containing compost after the introduction of the ban, most likely through a small group of retailers who will still be willing to stock it. In addition, the report finds that shortages of the necessary inputs, especially if they persist, will increase the incentives for manufacturers and retailers to bring peat-containing compost into England from elsewhere in the UK. Northern Ireland is the most likely source of peat-containing compost to be brought into England after the ban is implemented.

The use of horticultural peat across the UK has been in decline for the last 10 years.

Jennifer Pheasey, the HTA’s Director of Public Affairs, said the horticulture sector has been working hard to develop