Revenue from the UK’s Plastic Packaging Tax (PPT) fell by 4 per cent to £250 million ($338m) in 2025-26, while 37 per cent of plastics packaging manufactured in or imported into the UK remained subject to the tax.
New figures from HM Revenue and Customs (HMRC) show that 37 per cent of the total tonnage was declared as taxable under the PPT, compared with 38 per cent in 2024-25.
Of the remaining 63 per cent, 51 per cent met the requirement for at least 30 per cent recycled plastics content. A further 11 per cent was exported, intended for export, or converted.
Less than 1 per cent was exempt because it was used for the immediate packaging of human medicines.
The total amount of plastics packaging declared to HMRC also fell, from 3.138 million tonnes in 2024-25 to 2.970m/t in 2025-26.
Declaration
The amount declared as taxable fell from 1.194m/t to 1.107m/t over the same period. HMRC said the total amount of plastics packaging declared has fallen by around 13 per cent since PPT was introduced in April 2022.
PPT revenue accrued by HMRC totalled £250m in 2025-26, down from £261m in 2024-25. There were 5,142 businesses registered for PPT as of 13 August 2026.
David Gudgeon, head of external affairs at international circular economy specialist Reconomy, said the figures suggested progress in increasing recycled content had stalled.
“With the proportion barely changing from 38 per cent to 37 per cent year-on-year, there is clearly much further to go to reduce reliance on virgin material,” he said.
Low virgin plastics prices
Gudgeon said the continued low price of virgin plastics was one reason for the slow progress, as new material can be cheaper than recycled content.
He said this could change as measures including Extended Producer Responsibility, Simpler Recycling and PPT increase demand for recycled material.
However, he said the UK recycling sector would face difficulties if significantly more plastics packaging were collected for recycling.
Structural pressures, including competition from cheaper virgin plastics and rising labour and energy costs had forced many recycling plants to close, according to Gudgeon.
The UK, therefore, remains reliant on exporting plastics for recycling. Government data cited by Reconomy indicates that 51 per cent of plastics packaging is recycled in the UK.
Greater investment
Gudgeon has called for measures to encourage greater investment in domestic recycling infrastructure. “We would urge the government to create the conditions needed to unlock greater investment in domestic recycling infrastructure,” he said.
“In particular, it should consider following the EU’s lead by introducing mandatory minimum recycled-content requirements for plastics packaging. This would create more predictable demand for recycled material, providing greater certainty for recyclers and processors, while dovetailing with England’s plans to include flexible plastics in Simpler Recycling from April 2030.”
He said the requirements could include “progressive targets for different grades of material”, recognising that some packaging formats can accommodate higher levels of recycled content than others.
“For example, PET and HDPE bottles could have a minimum recycled-content target of 75 per cent, while LDPE could move towards 100 per cent,” he added.
Gudgeon noted that this could address the 37 per cent of packaging currently falling below the PPT threshold while supporting investment in recycling capacity and reducing waste and carbon emissions.
