Jim Bligh, director of corporate affairs and packaging, said HMRC’s decision was welcome and applauded the Chancellor’s focus on a consistent, long-term approach to tax and regulation.
“As a critical advanced manufacturing sector, we stand ready to work with government to make the most of this support. Boosting investment in R&D will help the industry to create jobs, drive innovation, and grow export opportunities – resulting in a stronger industry that underpins the nation’s food security.”
On HMRC’s decision to allow companies to use mass balance accounting in calculating recycled content for the Plastic Packaging Tax, he said: “Food and drink manufacturers want and need a circular economy for packaging recycling, so it’s great news that the government will enable companies to use mass balance accounting. This important change will open up new markets for advanced recycling in the UK, creating green jobs and investment opportunities, while increasing the amount of recycled content used in food-grade packaging.”
However, the drinks industry has expressed concern on aspects of the budget.
Simon Shelbourn, chief financial officer, Kingsland Drinks, said further taxing non-draft alcohol ‘hurts everyone’: “Whilst the government is working hard to plug the hole in the country’s finances, the consumer is being further penalised despite already bearing the weight of the cost-of-living crisis, and much of the drinks industry will once again have to prove its resilience despite being positioned to drive economic growth.
“The move is damaging to the industry and a setback to firms across the board who have worked tirelessly in recent years to withstand relentless taxation in the toughest of trading conditions.”
