Jim Bligh, director of corporate affairs and packaging, expressed that HMRC’s decision is commendable. He particularly praised the Chancellor’s commitment to a consistent, long-term strategy regarding tax and regulation, which is crucial for the food and drink sustainability sector.
“As a critical advanced manufacturing sector, we stand ready to collaborate with the government to maximize this support. Boosting investment in R&D will empower the industry to create jobs, drive innovation, and expand export opportunities—ultimately resulting in a stronger sector that underpins the nation’s food security,” Bligh stated.
With regard to HMRC’s choice to permit mass balance accounting for calculating recycled content under the Plastic Packaging Tax, he noted, “Food and drink manufacturers want and need a circular economy for packaging recycling, so it’s great news that the government will enable companies to use mass balance accounting. This important change will open up new markets for advanced recycling in the UK, creating green jobs and investment opportunities while increasing the recycled content in food-grade packaging.”
Despite these positive developments, the drinks industry has raised concerns about certain elements of the budget. Simon Shelbourn, chief financial officer of Kingsland Drinks, remarked that further taxation on non-draft alcohol ‘hurts everyone’. He stated, “Whilst the government is working hard to plug the hole in the country’s finances, the consumer is being further penalized despite already bearing the weight of the cost-of-living crisis. Much of the drinks industry will again have to demonstrate its resilience, even though it is positioned to drive economic growth.”
Shelbourn added, “The move is damaging to the industry and a setback for firms across the board that have tirelessly worked in recent years to withstand relentless taxation during the toughest trading conditions.” This situation highlights the need for continued advocacy for sustainable packaging solutions and fair policies that support both the food and drink marketing sectors and consumer trends.
