Question to the Department for Environment, Food and Rural Affairs:

To ask His Majesty's Government what assessment they have made of the cumulative financial impact on food and drinks businesses of (1) the extended producer responsibility for packaging, (2) the plastic packaging tax, and (3) the packaging recovery note system.

In autumn 2024, the Government published an updated assessment of the impact of introducing Extended Producer Responsibility for packaging (pEPR). This assessed impacts on packaging producers as a whole but was not sector specific. The impact of the introduction of pEPR on overall inflation was estimated to be small (approximately 0.07%).

Packaging Recovery Notes (PRNs) apply to all packaging waste. Overall, the system generated £322m in revenue from the sale of PRN/PERNs in 2025, spread across all sectors.

Defra continues to engage with industry to monitor and support implementation of the Regulations.

The Plastic Packaging Tax was introduced in April 2022 to provide a clear incentive for businesses to use recycled plastic in packaging, supporting increased recycling and reducing plastic waste. HM Revenue & Customs is undertaking an evaluation of the tax, including its impacts on businesses, and is set to conclude in 2026.