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February 13, 2013 06:00 AM

Cut VAT to boost plastics recycling, says MBA

Anthony Clark
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    MBA Polymers has called on the UK government to reduce VAT on recycled plastics to help stimulate consumer demand and encourage investment in the plastics recycling industry.

    The company's chief executive, Nigel Hunton, invited politicians to help “incentivise the market with legislation designed to encourage post-consumer recycled plastics content in new products, such as exemption or a reduced rate of VAT”.

    “These changes can accelerate recycling in the UK and provide a win-win-win for society, the environment and recycled plastics businesses in the UK,” he added, although no VAT target figure was given.

    Hunton was speak at ‘The future of recycling –The challenge for plastics', an event at Westminster attended by politicians, environmental groups and plastics users.

    He told his audience that the UK could become “a world leader in this sector” if the right level of legislative support is provided.

    “Plastics recycling is a big opportunity for UK plc,” he explained, adding: “The challenge historically has been recycling plastics from complex waste streams, but the technology now exists in the UK to allow effective separation.”

    The threat from China

    The audience, which included Environment Secretary Ed Davey, responded enthusiastically to MBA's presentation, which also featured a keynote speech from the company's president Mike Biddle, who warned that products made from recycled plastics coming out of China often failed to meet acceptable safety standards.

    “Tests have shown traces of lead, cadmium and other undesirables – things you wouldn't want in your household products,” he warned.

    Biddle said that there must therefore be enforceable international standards in order to ensure that the recycling vision isn't tarnished by bad practise.

    “Plastic is too valuable to throw away,” he added.

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