To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of using the carbon footprint and yield of the chemical recycling of plastic when assessing recycling for the forthcoming plastics tax; and will he make a statement.
29 March 2022
Following two consultations in 2019 and 2020 on the design of Plastic Packaging Tax (PPT), the Government decided that chemically recycled plastic will be an allowable source of recycled plastic for the purpose of the Tax. Industry recognised standards were considered as part of this consultation process and in the development of the definition of recycled plastic contained within Section 49 Finance Act 2021.
The Government has published the anticipated environmental impact of the Plastic Packaging Tax in a Tax Information and Impact Note. This is available here: www.gov.uk/government/publications/introduction-of-plastic-packaging-tax-from-april-2022/introduction-of-plastic-packaging-tax-2021.
HM Treasury has, and continues to, engage closely with the Department for Environment, Food and Rural Affairs on various aspects of the Tax, including on chemical recycling.