Sarah Garry Oct 15, 2026
Trade bodies urge government to align packaging measures as costs rise
Cross-sector open letter calls for a coordinated approach to support environmental progress and protect consumer affordability
The British Brands Group (BBG), alongside 17 other trade bodies, has written to James Murray MP, Emma Hardy MP and Jonathan Reynolds MP calling for a coordinated review of the UK’s packaging tax and regulatory framework amid concerns about rising costs for businesses, consumers and end-users.
The open letter urges the Treasury and Defra to examine how Packaging Extended Producer Responsibility (pEPR), Plastic Packaging Tax (PPT) and Packaging Recovery Notes (PRNs) interact, and to address overlapping obligations, inconsistent requirements and unintended consequences.
The signatories support the environmental objectives of increasing recycling and encouraging recycled materials. The trade bodies have however raised questions over the efficiency of the overlapping taxes, highlighting the need for the different regimes to work coherently together. The government’s announcement of the temporary lowering of recycling obligation thresholds, was welcomed but according to the letter, did not go far enough to address the issue.
The letter draws on experience across sectors including fast moving consumer goods, food and drink, packaging, cosmetics and personal care, medical devices, horticulture, construction and hospitality. Alongside direct charges, businesses report substantial administrative costs from managing different reporting timetables, data requirements and payment arrangements.
Examples include a multinational reporting UK packaging-related costs at approximately twice those in comparable European markets, without a corresponding benefit in packaging recovery. Smaller brands also report that rising compliance costs are limiting their ability to fund the expertise needed to explore alternative packaging.
A UK fine-fragrance importer and distributor also reports having to build a dedicated system to convert overseas packaging data into pEPR submissions. It says wood PRN prices have increased from around £7.50 per tonne to more than £100, while availability remains a barrier to meeting its obligation.
The letter suggests that against a backdrop of continued inflationary pressures, the cumulative costs of overlapping packaging regimes risk being passed through the supply chain, squeezing margins, limiting businesses’ capacity to invest and placing further upward pressure on prices for consumers and end-users.
The signatories warn that costs businesses cannot absorb risk being passed through the supply chain into the prices business customers and consumers pay. The letter seeks a meeting with ministers to discuss how packaging policy can deliver environmental improvements while supporting investment, competitiveness and affordability.
Sarah Garry, Chief Executive of the British Brands Group, said: “We brought together industry trade bodies to write to government on this issue as it is one of the single biggest issues affecting UK product manufacturers and distributors.
“Businesses have an essential role in reducing packaging waste and improving recycling. To make progress, they need a framework that works as a whole, with consistent requirements and clear incentives to invest.
“Our members are reporting rising charges and considerable costs simply to manage compliance. Smaller businesses tell us this is limiting the resources they can put into exploring better packaging.
“We are asking the Treasury and Defra to work with industry to address these overlaps and understand their cumulative effect on consumer prices. A more coordinated approach would help businesses invest with confidence and deliver the environmental improvements we all want to see.”