Millions poured in to the government’s controversial extended producer responsibility packaging tax risks being wasted after the government delayed plans for the collection of flexible plastic.
Local authorities throughout England were expected to start mandatory collection of soft plastics from the kerbside from 31 March 2027, under the government’s Simpler Recycling regulations.
However, last week it emerged the introduction had been delayed until 1 April 2030 amid long-running fears from local authorities over the cost and lack of resources.
Food & drink industry sources expressed shock at the move, which they said ran a “coach and horses” through the principle of EPR paying for authorities to ramp up recycling capacity.
The UK produces and places approximately 1.7 million tonnes of flexible plastic packaging on to the market every year, of which less than 10% is currently recycled.
An industry source told The Grocer: “This has come out of the blue for industry.
“It’s incredibly frustrating for food and drink businesses who feel like industry has got behind EPR, investing huge amounts into the scheme to improve recycling rates, to have a last-minute change from government that could cost them millions more than they planned for. It’s not good enough.”
The £1.5bn a year tax, now in its second year, was supposed to see a rapid improvement in council recycling services. Sources warned the delay could deliver a “hammer blow” to investment in soft plastic recycling facilities.
FDF director of sustainability and growth Balwinder Dhoot said: “We’re disappointed by Defra’s decision to delay mandatory collection of flexible plastics until 2030 without any consultation with the food industry.
“This will have a significant impact on food and drink manufacturers that use flexible plastic who will have made plans and investments based on a lower fee from 2027, and now face an unexpected multimillion-pound bill for the next three years.
“At a time when the industry is already under financial strain, this unexpected cost will be a major concern for these manufacturers and undermines investment decisions they’ve already made. Government must urgently clarify how it will implement this change and manage the financial impact, to avoid further disruption to affected businesses.”
The decision to put back the collection of the material comes despite figures released from the industry last September estimating that more than 150,000 tonnes of flexible plastic could be recycled across the UK within two years if the government and food & drink industry could solve the capacity crisis from reprocessing the packaging.
The result of the three-year FlexCollect trial, backed by a raft of leading food manufacturers, showed the market for kerbside collection of flexible plastics was affordable, scalable and had widespread backing from the public.
However, it also revealed the UK had insufficient recycling capacity to meet anticipated demand from 2027.
Robbie Staniforth, chief policy officer at Ecosurety, which was involved in conducting the trial, said the delay had left companies with a huge dilemma over whether to invest in soft plastic recycling facilities.
“I’m saddened to hear this news,” he said. “Once again, industry is left with the chicken and egg dilemma of whether to build reprocessing facilities before collecting material or vice versa.
“Obviously, the solution is to develop collections, sorting and reprocessing in lockstep to ensure we do not build ‘white elephant’ recycling plants, nor begin ‘recycling’ collections that end up getting burnt for energy.
“This announcement should prompt soul searching for those closely involved, including to understand what has gone so wrong and how we can ensure mistakes of the past are not repeated.”
David Gudgeon, head of external affairs at international circular economy specialist Reconomy, said: “While the delay is not entirely surprising given the widely documented lack of infrastructure for flexible plastic recycling, it is disappointing given that it was included in the original guidance published in 2024 and for businesses across the sector, who have been investing to strengthen domestic infrastructure.
“It does little to support investor and business confidence and also raises questions over whether Scotland and Wales will follow suit and whether we will see further policy divergence across the UK.
“The key now is for the government to provide policy certainty, giving operators like us the confidence to continue investing in the infrastructure needed to recycle this material domestically and build a truly circular economy.”
Local authorities, however, have repeatedly raised concerns about the implications of introducing collections.
Larac (Local Authority Recycling Advisory Committee) said a lack of established domestic end markets and the readiness of sorting and reprocessing infrastructure were key reasons why it was right for the policy to be delayed.
Gareth Rollings, chair of Larac, said: “Councils remain committed to delivering effective recycling services, but they need a system that is properly funded and supported by viable sorting, reprocessing and end market capacity.
“The additional three years must now be used constructively by government and industry to build that infrastructure and provide local authorities with the clarity they need to plan.”
Defra said it had postponed mandatory collection of these materials until 1 April 2030, following engagement with the waste sector and local authorities. A spokesperson said the collections remained part of its long-term plans.
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