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Rishi Sunak Challenged to Review Controversial Plastic Packaging Tax
We’re taking action! It’s no secret that the Plastic Packaging Tax (PPT) has been a hot topic for us here at goplasticpallets.com. We believe it’s important to raise our voice about issues affecting our industry and the environment. That’s why we’ve written directly to the Prime Minister, Rishi Sunak, inviting him to sit down with us and discuss the implications and flaws of the current PPT. The letter outlines our concerns, experiences, and suggestions for improving this tax to better serve sustainable practices in our industry. We’re committed to fostering a more eco-conscious future, and we believe this is a step in the right direction.
Get involved in the conversation over on LinkedIn
Read our open letter to the Prime Minister in full below:
A request to reform the Plastic Packaging Tax
Dear Prime Minister,
I am writing to you today as the Founder and Managing Director of a company that has, for many years, championed sustainability across the logistics sector.
At goplasticpallets.com, we take enormous pride in the sustainable products we supply, our pioneering recycling scheme which has seen our team recycle over 1,250 tonnes of plastic since 2019, our accreditation from the Environment Agency, and the work we have done with various charities and environmental organisations.
It is with disappointment and frustration that I write to you regarding the Plastic Packaging Tax (PPT), introduced in April 2022 whilst you were Chancellor of the Exchequer. Before the introduction of PPT, I was keen to learn more about this tax and the potential positive impact it could have. However, my initial enthusiasm turned to despondency when it became clear how my company would be penalised for supplying environmentally-friendly products made of virgin plastic.
The PPT applies to plastic packaging manufactured in or imported into the UK that does not contain at least 30% recycled plastic. I concur with the general sentiment across the logistics industry that this tax could have served a meaningful purpose in reducing the use of single-use plastics (such a shrink wrap, water bottles, food packaging, etc) and encouraging recycling.
However, the decision to include certain plastic pallets, pallet boxes and crates is completely misjudged and grossly unfair. In my opinion, a virgin plastic pallet we supply to a customer, which is then used for up to 10 or 15 years within their factory, should not be considered “packaging” – yet a plastic case for reading glasses, or the case a drill is sold and stored in, is exempt.
The current design and implementation of the PPT leaves much to be desired, costing our business unjustly while failing to encourage significant shifts in industry practice.
According to our Freedom of Information request, HMRC anticipated that 20,000 manufacturers and importers of plastic packaging would register for PPT in its first year. However, the actual number fell well short, with only 3,729 registering up to 31st March 2023. This vast discrepancy between expectation and reality implies either a substantial overestimation of the affected companies or a failure in enforcement and communication.
Despite this, HMRC seems to be hitting its revenue target, indicating a larger burden being placed on fewer companies. For transparency, I can reveal we paid £180,173 in PPT for the 2022/2023 period. This is significantly above the average payment HMRC originally expected per company, which indicates an undue burden on some businesses, including goplasticpallets.com.
As previously stated, our products are designed for repeated use over many years, contributing positively to sustainable supply chains and reducing deforestation. They offer a robust, durable, and reusable solution for different businesses. Additionally, our pallets and pallet boxes are 100% recyclable, ensuring a minimal environmental footprint.
The current form of the PPT has inadvertently penalised our environmentally-friendly products, making it harder for us to compete and invest in our business and our team. This is why I am calling for a thorough review and reform of the PPT.
Prime Minister, I believe that PPT, in its current form, is fundamentally flawed and not fit for purpose. I suggest that it should be scrapped and reintroduced with a clear focus on single-use plastic.
I extend an offer to meet with you and discuss how a redesigned PPT could encourage sustainable practices without disproportionately affecting eco-conscious businesses like ours.
Our common goal is to create a greener future. To achieve this, we need a tax policy that distinguishes effectively between single-use plastic and sustainable alternatives. I hope you will consider this appeal seriously and look forward to a positive and constructive dialogue on this matter.
Yours sincerely,
Jim Hardisty,
Managing Director of goplasticpallets.com