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Plastics recyclers reel under climate change levy costs

The plastics recycling sector is facing a 1 million hike in its electricity bill this financial year because of the Climate Change Levy, according to the British Plastics Federation.

Following a survey of its members who represent more than half of the 400,000 tonnes plastics recycling activity in the UK, the BPF's recycling council says that because the industry is not covered by the IPPC pollution control legislation, it cannot seek reductions in the levy charges. And, because the industry is not labour intensive, it does not benefit from a reduction in national insurance contributions which is meant to offset the cost of the levy which is met through higher electricity charges.

Colin Williamson, BPF Recycling Council chairman stated: “The UK plastics recycling industry is struggling hard to survive the current harsh economic climate. We are seeing shortages of good quality scrap film as so much is now exported to China and the PRN system has failed to have any significant effect.

“As a result, last year saw the industry decline as washing and extrusion capacity was closed down. Now we are faced with an enormous climate change tax bill that will only make the situation worse.”

Mr Williamson added: “We have the ludicrous situation of an environmental tax which will force plastics recyclers to subsidise the rest of the country. Plastics recycling must be an integral part of any plans for sustainable development, but the industry will decline again this year unless the government accepts that if it wants to see plastics recycling increase, it must create conditions that encourage recyclers to invest, rather than blitzing them with new taxes”.

Now Mr Williamson is planning to contact other recycling trade associations, including the Recycling Industries Alliance, in a bid to send a concerted message to government to reduce the costs to recyclers. For further information email: Colin Williamson

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