Government Support for a Circular Economy

Debate between Stewart Hosie and Caroline Ansell

Wednesday 25th October 2023 Westminster Hall

[Caroline Ansell]

I thank my hon. Friend for saying “pants to the tax”, and I am happy to confirm that I am 100% behind the campaign. It is a strange and extraordinary anomaly that period pants are classified as a garment, rather than as a period product. I cannot imagine anyone wearing period pants on other days of the month, just for fashion or pleasure, so I 100% subscribe to the campaign. We would be levelling up not only by changing the VAT regime for period pants, but by distinguishing between disposable and reusable. Surely we want to promote reusable in this context. It would be an important incentive because it would give choice, and my understanding is that the leading companies have pledged that the tax difference would be passed on to customers. This is another important way in which we can use the frameworks and levers around VAT and tax, as my hon. Friend said, to help people make the best and wisest decisions. I thank her for mentioning that important campaign.

Some products are more easily reused and repaired than others. A more circular approach in general would be a welcome step up in ambition, but I understand that the Minister is actively engaged through reforms to the waste electrical and electronic equipment regulations. It would be good to hear how those reforms are progressing.

Each year, only 1% of clothes are recycled into new clothes. It has been estimated that one truckload of clothing is landfilled or burned every second globally. On our high streets, charity shops do a fantastic job of providing access to textile reuse, both for clothing and for sometimes overlooked purposes such as furniture upholstery. Access to charity stores has helped to normalise reuse.

The work of charity shops will only go so far, however, and does not tackle the root cause. Back in 2018, the Government committed to consult on a textile extended producer responsibility scheme, but that has been superseded by other pressing priorities for the Department. However, there was a commitment to help establish the best waste hierarchy in order to better manage textile waste. With the Government target to halve residual waste, we have an incentive to tackle textile waste, but without a clear route to correct disposal, clothes will continue to be sent to landfill and incineration. In the light of that, I wonder what more the Minister might have planned to tackle textile waste.

This might be a Miranda Hart moment: my notes say “lubes”. For the benefit of Hansard, however, I might resort to “lubricants”. I wish to make some comments about cross-departmental collaboration. Energy is a resource that we must husband effectively and efficiently. With the UK target to achieve net zero emissions by 2050, we have been made to reassess our relationship with energy and the composition of specific resources that that might require.

Intuitively, we know that a more circular economy is one that uses renewable energy sources. In the south, looking across the downland from Eastbourne, we can see the most glorious vista across the waves to Rampion offshore wind farm, which powers half the homes in Sussex, and there is an ambition for an extension that would take in the whole county. As we continue to adopt renewables at scale, we must make sure that the resources that go into harvesting the energy are sustainable. The topic of blade recyclability is gaining traction, but the sustainability mindset should cover all aspects of the process, right down to whether the lubricants used in the generation of energy are sustainable. If our wind farms made the transition to bio-based lubricants, typically from vegetable oils, that would be very effective. Of course, the UK has abundant bio-based resources, such as rapeseed oil, for producing bio-lubricants.

There are further advantages to the adoption of a bio-based fuel. Bio-based fuels not only extend the life of the machinery, as evidenced by the Eden Project, but have a wider economic and environmental benefit: if they are accidentally discharged into the environment, they are benign compared with petroleum-based lubricants. Although waste and resources as a whole sit with the Department for Environment, Food and Rural Affairs, wind turbines are a Department for Energy Security and Net Zero matter. It is vital that cross-cutting, cross-Department issues do not fall through the cracks, so I would love to know what work could be undertaken between DEFRA and DESNZ around such issues and challenges. I will take that up with colleagues in DESNZ.

I know that by covering only packaging, electronics, textiles and renewables, I have missed out many other sectors that would benefit from a circular economy, but I hope that I have gone some way towards illustrating the opportunities, and the case for Government support. Business giants such as Currys, Apple, M&S and IKEA have been experimenting with reuse and take-back schemes. Indeed, the likes of eBay stake their entire business model on reuse. I am sporting my latest purchase: my vintage M&S jacket recently procured through eBay. They are joined by a suite of start-ups and small and medium-sized enterprises across the country that have put the circular economy at their heart. However, across the board, businesses are concerned that without stronger incentives, we will perhaps not see the leap from small-scale initiatives and trials to mass roll-out.

A circular economy is more efficient. It can save us money and make us money. In short, this is not a hair-shirted environmental mission. There are economic opportunities to be pursued, but after decades of disposability, there is work to be done to ensure that action is aligned with the Government’s commitment to creating a more circular economy.

[Stewart Hosie (in the Chair)]

Before I call the next speaker, may I remind the Front-Bench speakers that in these hour-long debates, the speaking times are five minutes for Opposition Front Benchers and 10 minutes for the Government? I call Andrew Selous.