One step closer to tax on plastic

After Mail campaign, Hammond and Gove unite to tackle blight

MICHAEL Gove and Philip Hammond have formed a Cabinet alliance to press for new taxes and restrictions on throwaway plastic.

The Environment Secretary and Chancellor, who have clashed repeatedly over Brexit, are said to have put aside their differences to work on a package of measures designed to drive out the worst forms of singleuse plastic.

Mr Gove, who has already championed a ban on plastic straws, is looking at the possibility of punitive levies on items that are hard to recycle, such as black plastic food trays, sauce sachets and the film packaging on some meat products in supermarkets.

The aim would be to change the behaviour of manufacturers and persuade them to switch to alternative materials which are less damaging to the environment. Mr Hammond, meanwhile, is considering a range of new taxes on coffee cups, bubblewrap and disposable cutlery. In the past, the Treasury has resisted the idea of putting new taxes on everyday items for fear of alienating consumers and putting pressure on family budgets.

But Treasury sources said the success of new charges on plastic bags and sugary drinks were helping to change the mindset of the department. The 5p charge on plastic bags, which was championed by the Daily Mail, has led to a reduction in their use of more than 90 per cent. And the recent tax on sugary drinks saw 50 per cent of manufacturers cut the sugar in their products to avoid the charge.

Treasury ministers have also been struck by the response to a consultation on plastic taxes, which attracted a record 130,000 submissions from members of the public.

One source said: ‘There is a public mood to change behaviour on plastic – unlike most taxes, people want us to intervene – so it seems like the moment to act.’ Mr Hammond’s plans for new plastic taxes will be set out in detail in the Budget, which is expected in November.

Mr Gove will set out his proposals in a new ‘resources and waste strategy’ at about the same time. Whitehall sources said the two ministers were working together to ensure the plans ‘dovetailed’.

Mr Gove, who is already working on proposals for a deposit return scheme for plastic bottles, is also looking to drive change by using the system known as ‘packaging recovery notes’ (PRNs) to drive out the worst plastics.

Since 2005, firms creating packaging waste have to buy a PRN to help offset the cost of dealing with the waste. The cost of PRNs acts as an incentive to use greener packaging and raises funds to pay for recycling. Mr Gove is examining whether the cost of PRNs could rise dramatically for those using the worst plastics.

One source said it could be made so ‘exorbitantly high’ it would be uneconomic for firms to continue using plastics that can’t be recycled.