With mounting pressures from cost increases, regulatory change and the need for long-term planning, industry voices say that this Budget must provide more than warm words if the government is to deliver on its circular economy ambitions.
Investment in infrastructure
Across the waste and recycling sector, organisations said tomorrow’s Budget must recognise that the UK’s transition to a more circular economy depends on sustained investment in new and upgraded infrastructure.
A statement from the National Association of Waste Disposal Officers (NAWDO) explained: “NAWDO hopes to see the pressing need for infrastructure investment and development given due regard within the Chancellor’s Autumn Budget release, to support both the ongoing Collection & Packaging Reforms as well as the forthcoming Circular Economy Growth Plan.
“The Government also needs to ensure that there is a planning, financing and policy environment that enables the development of innovative or less profitable infrastructure without which it will not be possible for local authorities to deliver key future services and support the transition to a Circular Economy.”
The Local Authority Recycling Advisory Committee (LARAC) echoed those concerns, warning that councils cannot deliver services such as Simpler Recycling without both system clarity and the digital and physical infrastructure that sits behind it.
The committee said: “Investment in digital systems is essential, from Digital Waste Tracking through to the modernisation of collection data, CRM systems and wider digital capability across all councils.”
Councils need ‘clarity and stability’
LARAC also warned that local authorities will need “clarity and stability” from tomorrow’s Budget if they are to plan ahead.
The statement said: “Local authorities need clarity and stability from this Budget. Councils are looking for certainty on future pEPR payments so they can plan long-term, and reassurance that no new funding cuts will undermine the delivery of Simpler Recycling.”
In addition, LARAC has called for alignment between the costs imposed by the EU Emissions Trading Scheme (ETS) on Energy from Waste (EfW) and the budgets of local authorities.
The statement continued: “The absorption of ongoing food waste revenue support into the wider settlement creates real pressure, and any future requirements such as kerbside WEEE collections or the expansion of POPs and chemicals categories will carry cost implications that must be recognised.”
Plastics recycling under pressure
One area of particular concern over the last year has been the state of the plastics industry, which has been described as needing government support to overcome current challenges.
The Environmental Services Association (ESA) has urged the government to strength the domestic market for recycled plastics, including reforming the Plastic Packaging Tax (PPT) to a progressive escalator model.
Jacob Hayler, Executive Director of the ESA, commented: “The Chancellor should introduce a progressive escalator of the Plastic Packaging Tax threshold rising from 30% to 50% recycled content over this Parliament – with consideration also given to the long-term trajectory of the tax rate.”
RECOUP warned that fraudulent claims under the PPT are undermining the plastic recycling industry and has also called for greater regulatory support, including a gradual increase in the PPT rate.
However, others have warned that increasing the PPT may add extra burden to businesses.
Zoe Brimelow, Director at packaging manufacturer and consultancy Duo, commented: “The Chancellor cannot hide behind sustainability to hike the Plastic Packaging Tax (PPT).
“Increasing the levy or the tax’s threshold for recycled plastic content to generate hundreds of millions of pounds to help plug a black hole in public finances, would harshly punish businesses and consumers.
“Companies have just been hit with packaging Extended Producer Responsibility (EPR) fees. Any increase in the PPT would pile pressure on squeezed margins and would likely lead to higher prices for consumers.”
Decarbonisation burdens in the paper industry
The paper industry has further called for support from the budget, with the Confederation of Paper Industries (CPI) emphasising that the sector is facing spiralling costs due to energy, waste charges, employer NICs and business rates.
A statement from the CPI explained: “To strengthen competitiveness and drive decarbonisation, CPI urges Government to act on energy costs, the highest in Europe, by reinstating capital support for energy efficiency through a simplified Industrial Energy Transformation Fund; and abolishing the Carbon Price Support mechanism.
“A new revenue support scheme is also needed to make electrification viable, alongside a Contract for Difference (CfD) style mechanism to align UK industrial electricity prices with European levels.
“CPI further calls for a one-year extension to the Carbon Price Floor Compensation Scheme beyond March 2026, with a successor developed from April 2027.”
Targeting illegal vapes
Action on vapes has also been suggested, following the introduction of the ban on single-use vapes on 1 June 2025.
It has been reported that the Budget may contain a number of measures to crackdown on the sale of illegal vapes, including new powers for the Border Force and HMRC.
The Association of Convenience Stores (ACS) commented that rogue traders “vastly” out-pace the level of enforcement, meaning criminals are willing to take the risk.
ACS Chief Executive James Lowman added: “Our members would welcome targeted action to disrupt the illicit trade that undermines responsible retailers across the country, but new powers and penalties will only be effective if Trading Standards officers have the additional resources they need to enforce locally.”
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