HM Revenue and Customs (HMRC) has reported that UK Plastic Packaging Tax (PPT) revenues for 2024/25 reached £ 259 million, a 3% decrease from the previous year’s £ 268 million. The figures highlight a decline in taxable plastic packaging as businesses adjust to the levy introduced in April 2022.
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How the Plastic Packaging Tax (PPT) Works
The PPT applies to manufacturers and importers of plastic packaging that contains less than 30 % recycled material. Businesses handling more than 10 tonnes of plastic annually are required to report their packaging volumes to HMRC. The tax aims to encourage the use of recycled content and reduce reliance on virgin plastics.
For 2024/25, 38 % of plastic packaging placed on the UK market was subject to the tax. This is down from 42 % in the prior year, suggesting a shift toward higher recycled content or exempt categories.
Breakdown of Exempt and Relieved Packaging
Of the plastic packaging not liable for the tax:
- 51 % met the 30 % recycled content threshold.
- 11 % qualified for relief due to export, intended export, or conversion.
- Less than 1 % was exempt as immediate packaging for human medicines.
The data shows a growing proportion of packaging meeting recycled content targets, with 1.59 million tonnes declared as 30 % recycled or more in 2024/25 compared with 1.39 million tonnes in 2023/24.
Business Impact and Industry Response
As of August 2025, 4,927 businesses were registered for PPT. The levy rate for 2024/25 stood at £ 217.85 per tonne, up from £ 210.82 the year before. Despite rising costs, industry feedback indicates that further investment and policy support are needed to increase recycled plastic supply and infrastructure.
Industry Reactions
Trade bodies and packaging manufacturers have welcomed signs of reduced reliance on virgin plastics but warned that progress risks stalling without stronger policy backing. Industry voices stressed that access to quality recycled material remains inconsistent, with demand outstripping supply in several segments. Many companies called for targeted investment in UK recycling infrastructure and clearer government guidance to help businesses meet recycled content targets while remaining competitive.
Conclusion
While total PPT receipts fell slightly in 2024/25, the decline reflects progress in the use of recycled plastics across UK packaging. With more businesses shifting to meet the 30 % recycled content requirement, the tax appears to be driving its intended behavior change. However, industry voices caution that scaling recycling capacity remains critical if the UK is to sustain this momentum and reduce dependence on virgin materials.
