In recent years, environmental concerns surrounding plastic waste have become increasingly prominent, driving governments and industry leaders to seek new ways of reducing plastic consumption. One such initiative in the UK is the Plastic Packaging Tax (PPT). If you’re a warehouse manager, or part of a procurement team, you’re likely already juggling cost management, safety regulations, and operational efficiency—but PPT adds another layer of complexity.
The purpose of this article is to demystify this tax, explain why it matters for anyone involved in purchasing stretch film, and provide practical guidance on how to navigate these new requirements without compromising on load stability and overall performance.

Understanding the Plastic Packaging Tax
Historical Background
The UK has long been at the forefront of environmental stewardship—think back to the landfill tax introduced in the 1990s and more recently, carrier bag charges. These measures aimed to reduce waste, encourage recycling, and shift consumer behaviour towards more sustainable options. The Plastic Packaging Tax, which came into effect in April 2022, is a key part of this ongoing trend. Essentially, it’s designed to incentivise businesses to use recycled plastic materials and reduce their overall reliance on virgin plastic.
Key Objectives
The main objective of the PPT is to cut down on unnecessary plastic waste. The government sets the goal of ensuring that plastic packaging with less than 30% recycled content faces a tax charge. This, in theory, makes recycled-content packaging more cost-competitive and encourages manufacturers, importers, and end users to innovate.
Promote Use of Recycled Materials: By taxing plastic packaging that fails to meet the 30% threshold, businesses are nudged to source more sustainable options.
Reduce Virgin Plastic Consumption: Using recycled plastic lowers the demand for new plastic resin and the resources required to produce it.
Support Wider Environmental Goals: Through these combined measures, the government hopes to move closer towards its net-zero targets.
Who is Liable for the Tax?
Under HMRC’s guidelines, anyone who produces or imports plastic packaging that contains less than 30% recycled content and weighs over 10 tonnes annually is liable for the tax. Often, responsibility for compliance trickles down through the supply chain, impacting everyone from the film manufacturer to the end user. For warehouse managers, this can mean extra administrative work if you import film directly. However, if you purchase from a UK supplier, they may already factor the tax into their pricing.
Tax Rate and Calculation
Tax Rate: The PPT rate is currently set at a fixed amount per tonne of plastic packaging. This figure can change, so it’s important to keep an eye on HMRC updates.
30% Recycled Content: Packaging that meets or exceeds 30% recycled plastic content is exempt from the tax. Proving compliance typically requires documentation or certification from your supplier.
Record-Keeping: Businesses must maintain accurate records, including details on the weight of plastic packaging, its recycled content, and relevant invoices to demonstrate compliance.

Relevance to the Transport Packaging Sector
The Role of Load Stability
As experts in the transport packaging sector, we know all too well the importance of load stability – an ideal we have not only a team dedicated to, but a world class facility as well. The name of the game is balance, achieving total stability of load units, whilst keeping operations as streamlined and efficient as possible. It’s important to stress here, for those who think the obvious answer is to over stretch their wrap or downgauge film on a purely ‘green’ basis, the risk of damaged goods can often bring far greater costs to their environmental footprint.
Common Plastic Packaging Materials
When we talk about plastic packaging in logistics, stretch film is often the first thing that comes to mind. However, shrink film, shrink hoods, and pallet wrap are also commonly used. Different properties—like thickness, puncture resistance, and cling—determine how suitable they are for various types of loads. As a procurement professional, you may already be evaluating these factors. The PPT adds a new dimension: can the film you’re buying achieve the necessary performance with a higher recycled content?
Financial Implications
Naturally, the introduction of a tax can result in added costs, depending on the volume and type of stretch film you’re using. While a small or medium-sized business might see a moderate impact, larger operations that cycle through high volumes of packaging material could face significant expense if they don’t adapt. However, this isn’t solely about cost—there’s also an opportunity here to re-examine long-standing purchasing habits, possibly revealing efficiency gains or sustainability improvements in the process.
Key Considerations for Warehouse Managers & Procurement Teams
Assess Current Stretch Film Usage
Begin by examining how much stretch film you currently use and the specifications (gauge, weight, polymer type) of those products. If you’re importing directly, check if you already exceed 10 tonnes per year. Even if you’re below that, it pays to track usage accurately—it helps with forecasting and budgeting, and sets a baseline for improvements.
Balancing Quality and Sustainability
One of the biggest challenges is ensuring that incorporating recycled material doesn’t compromise load stability. High-quality recycled-content films have come a long way in recent years, but not all recycled materials are created equal. Testing new films under real-world conditions is crucial. You don’t want to risk broken pallets or product damage, which can negate any cost savings or sustainability gains.
Building Strong Supplier Partnerships
Your suppliers can be invaluable allies. A reputable supplier will be transparent about the recycled content of their films, offer certifications where necessary, and possibly even provide test rolls so you can assess performance. Develop a close relationship with them, share your load stability challenges, and work together on finding the optimal solution. This collaboration might include exploring different film formulations, adjusting pre-stretch settings, or trialling new technology.
Compliance and Cost Mitigation Strategies
Investing in New Technologies
Stretch film is not just a static commodity; it’s a product that has benefited from ongoing R&D. Modern films often have improved elasticity, reduced thickness, and enhanced tear resistance—all while offering high load stability.
Load Optimisation Techniques
Sometimes the secret to using less stretch film is simply better load configuration. For instance, if you’re wrapping irregularly shaped items, consider using corner boards or horizontal strapping to give your load more structure. This can reduce the amount of stretch film needed to stabilise the pallet. In one warehouse we visited recently, switching from a random stacking method to a more structured pallet build cut their stretch film usage by nearly 10%. Those savings quickly add up—and also reduce your PPT exposure.
Recycling and Closed-Loop Systems
Many of the businesses I work with are investing in in-house recycling or closed-loop systems, where used plastic packaging is reclaimed and sent back to manufacturers to be processed into new film. While this requires initial investment in balers, compactors, and recycling partnerships, it can pay off in the long run—both financially and environmentally. Moreover, showcasing these efforts can boost your business’s public image, emphasising a commitment to sustainability.
Monitoring and Continuous Improvement
Finally, the most effective strategies won’t mean much if you’re not monitoring your usage data. Track the weight of stretch film purchased, the number of pallets wrapped, and the associated costs. Over time, this data allows you to pinpoint trends and measure the real impact of any changes you implement—like adopting a higher recycled-content film or upgrading your stretch wrappers.
Future Outlook
Potential Changes in Legislation
The Plastic Packaging Tax is still evolving. The government might adjust rates or thresholds based on how effectively the tax is meeting its environmental objectives. Being proactive—staying informed through HMRC updates, industry news, and professional associations—will help you anticipate and plan for these changes.
Trends in Sustainable Packaging
Beyond recycled-content films, the market is seeing a surge in biodegradable or compostable materials. While these remain niche in heavy-duty transport applications, ongoing research could bring game-changing innovations. Keeping an eye on these developments may give you a head start in future-proofing your packaging strategy.
Opportunities for Competitive Advantage
Adhering to the PPT and championing sustainability can be a strategic advantage. Customers, investors, and even employees often favour companies with strong environmental credentials. By taking proactive steps—like reducing virgin plastic use, optimising packaging design, and investing in load stability solutions—you position your operation as both cost-efficient and environmentally responsible.
Conclusion
Navigating the Plastic Packaging Tax might feel daunting at first, but it also presents an opportunity to reevaluate existing practices and move towards more sustainable, cost-effective solutions. As warehouse managers and procurement teams, understanding how PPT works—and how it specifically affects stretch film usage—puts you in a strong position to manage any potential financial impact.
Above all, don’t lose sight of your core objective: protecting the integrity of your loads. By striking the right balance between sustainability, compliance, and performance, you can maintain a safe, efficient operation—while also doing your part to safeguard the environment.