FPA Friday Digest

Introduction by the FPA's executive director Martin Kersh

The collapse of Oakman Inns into administration, plus BrewDog announcing its intention to close 10 bars, made for a very grim week for the hospitality sector and its suppliers. Surely it must be obvious to all that the packaging reforms – including no solution for packaging in hospitality environments being classed as household packaging – can only add fuel to the fire. Our meeting this week with the Treasury on the Plastic Packaging Tax served as a timely reminder that the Autumn budget will be with us before we know it, and if hospitality is to achieve any form of relief from the Chancellor then now is the time to act, as UKHospitality is doing.

If we are to convince the Chancellor not to increase the Plastic Packaging Tax recycling content threshold or the rate itself above CPI, then all those reports of imports making false claims of recycled content need to be backed up with evidence. It’s one thing to make the claim, but unless it’s backed up credibility will be lost. Don’t hold back on sending us examples, we will ensure sources of evidence are anonymous. The ball is in your court.

Fingers firmly cross for the Lionesses to prevail on Sunday. A great win will certainly give hospitality a much needed boost.

Will the budget see Plastic Packaging Tax thresholds and rate increased?

As part of its work on advising on the content of the next budget, the Treasury is investigating the effectiveness of the Plastic Packaging Tax in achieving its objective of increasing the volume of recycled plastic content used. The FPA's executive director Martin Kersh, met with the Treasury team dealing with PPT this week, which for purposes of the budget announcement must advise the Chancellor on whether to raise the recycled content threshold from 30% and increase the rate over and above the Consumer Price Index from the current rate of £223.69 per tonne.

On behalf of FPA members, Martin raised four arguments for not increasing either the threshold or the rate:

An increase in either will encourage fraud and must not be considered until an ISO certification system for recycled content is in place. Action needs to be taken to stop packaging making fraudulent claims regarding recycled content from reaching the UK market. This includes the use of highly dubious certificates. Currently, only UK producers must supply audit trails, while importers escape this requirement. This needs to be changed before the government considers any adjustments.
Now mass balance has been accepted and comes into force in two-years' time then chemical recycling will develop. Martin also highlighted the growing use of artificial intelligence in waste management, which will greatly improve sortation – both in respect of speed and in the accuracy of separating plastics, so improving quality.
Food contact approval is taking too long, as we are witnessing with the Food Standards Agency and the approval awaited for recycled PP. The FSA’s resources are dwindling at a time when new materials are being developed. Investors need reassurance.
Increasing either or both recycled content and rate will increase imports, especially with the current shortage of available recycled content. The increase will further fuel this shortage, which is reflected in recycled plastic prices. If content is unavailable then the tax is only adding to Treasury receipts, and is removing money from UK industry to invest in the recycling infrastructure desperately needed to meet recycling targets.

Martin asked the Treasury to ensure its modelling assesses rate and threshold independently, as an increase in one doesn’t necessarily require an increase in the other to achieve the behavioural changes sought. It is questionable in any case whether behaviour changes the issue, as feedback the FPA receives indicates producers would greatly like to increase the recycled content of their packaging, but the very nature of the tax is putting recycled plastic content beyond reach. Even if it were within reach in volumes needed, how will adding to consumer price inflation be avoided?

The FPA feels HMT has a cast iron argument to dissuade the Chancellor from increasing the PPT threshold, while increasing the tax rate will only serve to remove money from packaging producers and reduce their ability to buy recycled content. In the wider scheme of things the addition to Treasury revenue is marginal, and is yet another example of tinkering at the edges of budgetary planning.

FPA RAM and EPR compliance webinar speakers confirmed

The FPA is delighted Ashleigh Taylor of Compass, together with Ryan Pedley and Alison Appleby of compliance agency Ecosurety, will be addressing the FPA webinar on Tuesday 19 August at 10:30 a.m.

Ashleigh will provide a unique perspective from an operator’s point of view regarding the real world issues with data reporting for EPR and the details needed for RAM. With deadlines rapidly approaching, Ecosurety will set out the key action points you must take.

We will issue joining instructions very soon, but in the interim ask you to make a note of your key questions so we may submit them ahead of the day.

Why doesn't media understand banned SUPs made from 'bio' sources are equally banned?

Two articles from the London Daily News, a monthly mostly digital publication with a print run of 100,000 have managed to invoke the ire of FPA members. Both are authored by Thomas Wu, founder of Bioleader, and described by LDN as “a recognised authority in biodegradable foodservice packaging”. The first article has the headline, 'Plastic-free dining: the next big thing in food service around the world', and the second, 'Cutting out plastic: why biodegradable and compostable cutlery is transforming UK foodservice'.

In response to the FPA's questions, LDN confirms the cutlery article refers to 'compostable PLA and cornstarch cutlery' and so knows these are plastics and, despite us spelling out government legislation in which fossil fuel and plant derived plastics are treated the same for both bans and taxes, they write 'as such, the article will remain published in full'.

Our emails to the LDN team have resulted in the the adding of editor’s notes:

'To clarify that definitions of 'plastic-free' vary across regulatory frameworks'.
Plastic-free means free of plastic, so how can it vary?

'To clarify that interpretations of compliance can vary, particularly around bioplastics'.
The SUP ban is set out in legislation, in what way does that vary?

So, the misleading headlines remain, yet LDN claims the headlines do not encourage readers to buy banned items and they somehow have convinced themselves interpretations of the SUP bans can vary and their articles are not in breach of guidance.

Both articles are error strewn, and perhaps even the writing of this article is giving both way too much airspace. However, there are far too many LDN articles floating around and these articles do tend to stick, while Google Alerts probably gives them more exposure than they merit.

And as for variations in interpretations, it's a bit like a thief claiming they weren't stealing, but merely reallocating resources.

PackUK senior officers announced

PackUK, the scheme administrator for packaging Extended Producer Responsibility, has announced Jeremy Blake as CEO and Esther Carter as chief strategy officer starting in September.

Jeremy Blake, will be known to some of you from his role of MD of Berry Global’s rigid plastic recycling business, where he was responsible for the build and management of the company's recently developed site to recycle PP to food grade packaging. Following Amcor’s purchase of Berry Global, Jeremy was appointed Amcor director of circular economy.

Esther Carter, formerly a senior manager at McKinsey & Company, has most recently served as global director at environmental non-profit Delterra, leading its 'Rethinking Recycling' programme in Latin America and South East Asia, which has resulted in the building of new waste systems. She has also held analytical roles at Tesco and P&G.

To some extent it comes as a relief that these key roles have been assigned to two figures with packaging industry knowledge rather than to career civil servants.

Tell us what you'd like to see discussed at the FPA's Environment Seminar

The FPA’s annual Environment Seminar is taking place on Wednesday 29 October at Stationers’ Hall, St Paul’s. As in previous years the seminar will feature a wide range of subjects and speakers and give members the opportunity to hear from, and question, representatives from government, packaging, environment and hospitality. Details will be announced over the coming months.

Apart from asking you to and your colleagues to hold the date, we also ask you to let us know the subjects and issues you would like to be covered by responding to a short survey via the button below. There's still time do do this as we have extended the deadline to the end of July.

Our thanks to all those who have already responded.

Essential reading

edie: UK businesses less confident in meeting net-zero targets, despite increasing policy certainty. Read more here

Packaging Gateway: More packaging firms attract buyers in M&A surge. Read more here

Food & Drink International: What the EU's single-use plastics directive means for food and beverage companies. Read more here

Circular: UK recycling rate rises to 44.6% as waste to landfill falls. Read more here

Just Food: EU takes France to court over recycling label laws. Read more here

Packaging Gateway: UK's OPRL to introduce Recycle label for carton packaging. Read more here

Saxon Moseley, partner and head of leisure and hospitality at audit, tax and consulting firm RSM UK in commenting on the latest UK insolvency statistics.

“Today’s figures show the cost pressures and challenges faced by the hospitality industry are really starting to bite. Higher staff costs and rising inflation, combined with subdued consumer spending, means some operators are simply running out of runway. Many have reached their limit in passing on costs to customers and are currently in survival mode. The rise in insolvencies is one of many warning signs that the industry is struggling, alongside the reduction in payrolled employees and sluggish trade, so the government would do well to take notice before it’s too late".

WasteAid on LinkedIn | @wasteaid-uk

We are incredibly grateful to the (FPA) Foodservice Packaging Association and its members for their continued support of WasteAid’s mission to promote better waste management practices and create green jobs in the world’s poorest places.
At the recent FPA Golf and Activities Day Anna Turner, FPA Interim Executive Chair, presented us with a cheque for an amazing £8,000. These funds were raised through the incredible efforts of everyone involved in the 2025 FPA Awards.
An additional £809 was raised through generous donations and raffle tickets during the Golf Day—making 2025 the FPA’s most successful fundraising year to date! 🎉
From all of us at WasteAid: Thank you to the FPA team, its members, and everyone who donated or took part. Your support helps us make a real and lasting impact in communities where it’s needed most.
Learn more about the FPA’s incredible fundraising efforts here

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