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PACKAGING


T


he autumn budget of 2025 has landed, and the print and packaging sector is now assessing the implications of a fiscal statement that delivered both expected measures and a few unwelcome surprises.


As Chancellor Rachel Reeves outlined a programme shaped by “necessary choices,” industry leaders immediately turned their attention to what the announcements mean for cost pressures, regulatory obligations and investment plans in the year ahead.


THE BUDGET BREAKDOWN In the buildup to the budget, much of the national debate centred on the career prospects of the Chancellor and her party leader. The packaging industry cannot afford to indulge in Westminster psychodrama, however, for a sector already balancing rising material prices and intensifying sustainability demands, the reveal of the budget must be met with a rapid response. Much of the immediate reaction has


centred on the regulatory environment, particularly the increase to the Plastic   already standing at £223.69 per tonne and applied to almost 5,000 registered businesses, the tightening of recycled content requirements comes at a time when recycled polymers remain more expensive than virgin material and domestic recycling capacity continues to contract. The planned shift towards a higher recycled-content threshold, combined with signals of a longer-


AUTUMN BUDGET 2025: THE PRINT & PACKAGING


INDUSTRY REACTS Packaging Innovations & Empack looks at how the budget of 2025 is being received across the print and packaging sector


 around rising overheads and the widening gap between policy ambition and on-the- ground infrastructure. More warmly received was the


announcement of a £1.5bn skills package aimed at tackling the UK’s entrenched labour shortages and sluggish productivity. This will see apprenticeships, digital training, employer incentives and AI-focused programmes brought together under a single, more targeted framework. This is aimed at closing skills shortages across engineering, manufacturing, construction, health and the AI sector. While many headlines focus on the


measures that are in the budget, some measures are attracting attention for their  tax by scrapping its lower rate was dropped, as the government seemingly listened to concerns raised by the construction and


24 DECEMBER 2025/JANUARY 2026 | FACTORY&HANDLINGSOLUTIONS


waste management sectors. This has   businesses looking to build new facilities in the UK. Another proposal that did not make its


way into the red briefcase is a progressive PPT escalator to raise the recycled-content threshold from 30 per cent to 50 per cent over this Parliament, backed by a clearer long-term tax roadmap. Many stakeholders argue that this is essential to stabilise the market and stimulate demand for high- quality UK-reprocessed plastics. To capture the full picture of how the


sector is responding, Packaging Innovations & Empack 2026 invited leaders from across print, packaging, recycling, materials and design to share their immediate reactions, offering a candid, cross-industry view of what the Budget gets right, what it has overlooked and where businesses now go next.


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