Autumn budget 2025: Updates for Plastic Packaging Tax and Extended Producer Responsibility

The UK Autumn budget 2025 has confirmed changes to both the Plastic Packaging Tax (PPT) and Extended Producer Responsibility (EPR) for packaging.

PPT rate increase and future reforms

From 1 April 2026, the PPT rate will rise to £228.82 per tonne, in line with inflation forecasts. The tax continues to apply to plastic packaging manufactured in or imported into the UK that contains less than 30% recycled plastic, with registration required for businesses handling 10 tonnes or more annually.

The budget also reaffirmed plans to allow a mass balance approach for chemically recycled plastic from April 2027, enabling producers to count chemically recycled content toward the 30% threshold. At the same time, pre-consumer recycled material will no longer qualify, tightening the focus of the tax on post-consumer waste and, potentially, reducing fraudulent recycled content claims.

Extended Producer Responsibility

The budget reiterated government plans to improve the EPR system by appointing and industry-led Producer Responsibility Organisation (PRO) in 2026, which will have delegated responsibilities and ensure a more central role for business within the system’s governance. The publication also outlines the intention to consult on proposals for how local authorities use EPR payments, helping ensure EPR investment will drive measurable improvement in recycling collections and management.

PRN Reform and the Deposit Return Scheme

Although not outlined in detail, the budget references the proposed consultation on reforming the PRN system (expected in early 2026), to improve transparency and reduce fraudulent activity. Finally, to reduce administrative complexity, the government will remove the requirement for individual producers to account for VAT on unreturned deposits under the Deposit Return Scheme (DRS) – expected to be implemented in 2027. Instead, this responsibility will shift to the Deposit Management Organisation (DMO).

You can read the full budget here. As any of the above factors progress, we’ll keep our members updated. In the meantime, if you have any questions please do reach out.