Plastic Packaging Tax Revenue Falls as Reported Recycled Content Grows

HMRC has released its latest figures on the Plastic Packaging Tax (PPT), showing a 3% fall in revenues for 2024–25 compared with the previous year, with total income dropping from £268 million to £259 million.

This decline is linked to growing use of recycled content in packaging. In 2022–23, around 1.29 million tonnes of plastic packaging met the 30% recycled content threshold. This rose to 1.4 million tonnes in 2023–24 and reached 1.6 million tonnes in 2024–25.

The figures may demonstrate progress towards greater uptake of recycled plastics, but also highlight the fragility of the sector. Recyclers continue to face difficult trading conditions, with high operating costs and low virgin polymer prices squeezing margins. Several operators have warned that without policy adjustments, recycling infrastructure may shrink just as demand for recycled content is rising.

Along with other industry voices, RECOUP have called for reforms to the tax to strengthen its impact – such as increasing the recycled content threshold (in conjunction with robust verification procedures), or linking revenues more directly to investment in UK recycling infrastructure. The latest data will likely add weight to those calls, as government looks to ensure the PPT delivers both environmental and economic benefits.

For the LetsRecycle article, click here.