Autumn Budget 2025: Sustainability Regulations Roundup
On 26 November 2025, the Labour Government announced its Autumn Budget, laying out the state of the economy and setting fiscal plans for the coming years. The Autumn Budget is one of two key financial announcements given in a financial year, reflecting governments priorities for the coming year and beyond.
While the budget covers a wide range of topics and industries, this roundup focuses solely on the key environmental regulations that could impact Beyondly customers.
Packaging EPR
No new announcements were made for pEPR, which will come as welcomed relief to producers as we reach the final stages of this introductory phase to the regulation. No new updates give producers the chance to let the dust settle, better understand the changes already made and begin planning with greater confidence.
The budget did still cover several important points, including:
- The ability for PackUK (the Scheme Administrator) to appoint a Producer Responsibility Organisation, giving producers a voice at the heart of the packaging regulations and future input in the development of the scheme. For more information on this, please see our news story on the pEPR amending regulations.
- A consultation on proposals to increase transparency around how Local Authorities use the fees they receive from producers.
- A consultation and further work, on PRN reforms to strengthen the PRN system and increase its resilience in the face of market shifts in the future.
Plastic packaging tax (PPT)
It has already been confirmed that the changes around chemically recycled plastics will be legislated in the Finance Bill 2025-26 to be introduced in 2027, but there were also a couple of other announcements for PPT:
- There will be an increase in the PPT rate in line with inflation (Consumer Price Index) in 2026/27, from £223.69 per tonne to £228.82 per tonnes from 1 April 2026.
- The government are also planning to consult in early 2026 on the introduction of mandatory certification for mechanically recycled plastic packaging for businesses claiming exemption from PPT. This would be a significant change, leading to possible complications for companies, requiring them to navigate requirements to be able to evidence the necessary certification.
Deposit return scheme (DRS) for drinks containers
A positive update for producers of drinks containers in scope of the DRS regulations. It was announced that individual producers will not be required to account for the VAT on unreturned deposits, this will be shifted over to the Deposit Management Organisation (DMO).
Carbon border adjustment mechanism (CBAM)
Due to be legislated in the Finance Bill 2025-26, CBAM will be introduced from 1 January 2027, with the removal of indirect emissions from scope until earlier 2029.
CBAM is a climate policy with the aim at addressing “carbon leakage”, where companies move production to countries with weaker climate policies to avoid carbon costs. CBAM levels the playing field by ensuring that certain imported goods face a similar carbon cost to goods made in the UK. This is aligned with CBAM in the EU, to reduce friction and ensure competitiveness in closely intertwined markets.
Post-Brexit trade support in Northern Ireland
With a raft of incoming European regulations that also apply in Northern Ireland - due to its alignment with the EU Single Market - such as the new Packaging and Packaging Waste Regulation (PPWR), the EU Batteries Regulation (EUBR), and potentially the EU’s Critical Raw Materials Act (CRMA), it will come as a relief that the government has committed support for businesses trading between Britain and Northern Ireland. This includes plans for regulatory hubs, one-stop-shops, and additional funding to help businesses navigate the Windsor Framework.
Landfill tax
The government will not proceed with its plans to scrap the lower rate of landfill tax, following concerns from the Environment Agency about the misclassification of waste to access the cheaper rate. After pushback from industry, the new changes will include the same monetary uplift (£4.50/t) for both the lower and standard rates for the landfill tax. This still leaves the standard rate, £130.75/t, at over 15x higher than the lower rate, and while this does remove an additional cost for legitimate businesses, it isn’t incentivising change away from landfill where needed.
If you would like to speak to Beyondly about anything covered as part of this round-up, you can contact our team here, alternatively, follow the link below to sign up to our newsletter to receive regular updates.
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