Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of the Plastic Packaging Tax on small and medium sized businesses.

Plastic Packaging Tax was introduced in April 2022 under the previous government and provides an incentive for businesses to use recycled plastic in packaging, thereby supporting increased recycling and reducing plastic waste.

The tax applies to businesses that manufacture or import 10 tonnes or more of plastic packaging within a 12-month period, meaning only businesses above this threshold are within scope.

HMRC are currently undertaking an evaluation of the tax which aims to assess the tax’s effectiveness, including impacts on businesses, and is set to conclude in 2026. The government keeps all taxes under review as part of the policy making process.