The print and packaging industry has given a varied reaction to the UK Government’s 2026 Budget, with companies expressing gratitude for targeted assistance to manufacturers, but also raising concerns about the extent of relief that will be provided to the entire supply chain.
From 1 April 2027, the Plastic Packaging Tax (PPT) will rise to £236.56 per tonne, up from £228.82. The Government also confirmed that pre-consumer waste will no longer count towards recycled content for PPT purposes, while mass balance accounting will be introduced from the same date. Mandatory certification for mechanically recycled plastic will follow in April 2030.
Under the British Industrial Competitiveness Scheme, eligible manufacturers will be able to reduce their electricity costs by up to 25% starting from April 2027. The main-rate first-year allowance for qualifying investments will increase to 50% from January 2027, although the writing-down allowance will decrease to 12% in April, down from 14%.
The Foodservice Packaging Association (FPA) welcomed support for energy-intensive manufacturers and investment, but warned that businesses face growing costs from PPT, extended producer responsibility (EPR), packaging recovery notes and the forthcoming Deposit Return Scheme. It called for a coordinated review of packaging policy, highlighting concerns that compliance costs are disproportionately borne by responsible businesses and that producers need clearer evidence of improvements to recycling infrastructure.
Reactions from the industry
The Food and Drink Federation (FDF) has expressed disappointment that food and drink manufacturers have not received adequate support. According to Karen Betts, the FDF’s chief executive, the sector has been denied energy support available to other manufacturing industries, despite facing energy costs that are twice the European average.
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The British Plastics Federation has also raised concerns about the limited support available to its members. Mohamed Elkhalifa, the federation’s industrial and public affairs manager, noted that the plastics sector, which is the UK’s third-largest manufacturing sector by employment, lacks a dedicated support fund, despite facing high energy costs.
Industry Calls for Policy Coordination
Industry groups urged a coordinated review of packaging policy. They noted that compliance costs fall disproportionately on responsible businesses.
The Packaging Federation welcomed the Government’s commitment to reducing unnecessary regulation. The group called for a direct voice in the work of the new Better Regulation Executive. It also backed an urgent review of EPR.
Prospects for the sector
For some companies, the investment measures offer opportunities, although it is unclear how widely they will be felt. As Jo Stephenson, managing director of Think B2B Marketing, noted, the Budget provides selective cost relief, but the eligibility criteria will determine which parts of the packaging supply chain benefit from energy support.
