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Leadership change may mark the end of Circular Economy Growth Plan

Leadership change may mark the end of Circular Economy Growth Plan
Andy Burnham. Image credit: John B Hewitt, Shutterstock

Industry experts have warned that the upcoming UK leadership change may mean that the Circular Economy Growth Plan (CEGP) may be “dead in the water”.

This is despite Defra promising in June that the plan was to be released “soon”.

The growth plan was due to be released last Autumn but was subsequently pushed back to “early 2026” and later “Spring 2026”.

Now rumours are swirling throughout the sector that the leadership change may be the “death knell” for the government strategy.

An insider told letsrecycle.com that approximately 50% of attendees at a private gathering of key industry stakeholders – which included those who worked on the strategy – believed that the plan will now never be released.

Andy Burnham has effectively been confirmed to replace current Prime Minister Keir Starmer, with his leadership bid supported by 349 out of 403 Labour MPs.

This has put Burnham on track to take over as Labour leader and Prime Minister on 20 July, at which point he is expected to reshuffle his cabinet.

Experts predicted that this will likely lead to the replacement of current Environment Secretary Emma Reynolds, a long-time ally to the outgoing Prime Minister.

All government departments are expected to avoid making any major policy announcements in the meantime – a standstill that will likely continue for several months following the reshuffle.

Key industry figures privately told letsrecycle.com that they strongly suspect this will mean the Circular Economy Growth Plan will fall off the priority list and will not be released at all.

During a public panel at the WRA Conference, CIWM’s Director of Policy, Comms and External Affairs Dan Cooke warned that the Environmental Audit Committee would likely question any confirmed scrapping of the plan, given the significant costs associated with its creation.

Last week, environmental charity Green Alliance released a campaign calling for Burnham to push ahead with the release of the CEGP.

Libby Peake, Senior Fellow and Head of Resource Policy at Green Alliance, said: “The Circular Economy Growth Plan should have been well into its delivery phase by now, providing not only environmental benefits, but much needed economic resilience and savings for people’s pockets.

“Its inexplicable limbo is damaging business investment in the future-proofed economy we need to see now. Andy Burnham will inherit a plan developed with independent expert advice. He should make it an early priority to publish it.”

Circular Economy Growth Plan

The Circular Economy Growth Plan is based on the work of the Circular Economy Taskforce.

The Taskforce was established in December 2024 to design the first framework for England’s transition to a circular economy.

It is important to note that the growth plan is only expected to provide policy recommendations, and was not set to form legislation itself.

Chaired by Andrew Morlet, former Chief Executive of the Ellen MacArthur Foundation, the group was tasked with developing sector-specific “roadmaps” for reforming material use and supply chains.

The taskforce identified six priority sectors where circular principles could deliver the most significant environmental and economic gains:

  • Agri-food
  • Chemicals and plastics
  • Construction
  • Textiles
  • Transport
  • WEEE

Each roadmap will include specific actions, timelines, and policy recommendations to drive circularity within the sector.

In the announcement of the priority areas, then Defra Secretary Steve Reed said that the government vows to “end throwaway culture” and “make reuse and repair the norm”.

Morlet said at the time: “Transitioning to a circular economy is an ambitious but crucial goal as this Government kickstarts economic growth and turns Britain into a clean energy superpower.

“I welcome the vision set out by the Environment Secretary at this critical juncture in our journey.

“Our taskforce will bring together industry, academic and policy experts with central and local government to ensure we maximise its potential fully by creating jobs, increasing resource efficiency and accelerating the path to net zero.”

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