NFU intervention leads to silage wrap tax win

-

An NFU intervention has prevented silage wrap being hit with a £200-a-tonne tax, with much of the cost likely to have been passed on to farmers.

HMRC issued guidance over Christmas that listed silage wrap as ‘packaging’ for the first time, and subject to the Plastic Packaging Levy. Treasury officials confirmed the change in early January.

The NFU challenged the decision in briefings to MPs and during a meeting between NFU President Minette Batters and Treasury Minister, Helen Whatley.

While strongly supportive of efforts to reduce farm plastics, the NFU had stressed that the primary role of silage wrap was to ensure silage fermentation, which exempted it from the packaging levy. The NFU also argued that the function of silage wrap made more recycled or biodegradable wraps impractical.

In a letter of response to the NFU, the Treasury said: ‘Following further careful analysis, HMRC has confirmed that silage film falls under an exemption.

‘Representations made by you and others have demonstrated that (it) is a highly specialised product, the primary purpose of which is to enable fermentation.’

Costs would fall on farmers

At an earlier Westminster Hall debate, Amber Valley MP, Nigel Mills, said the proposed reclassification had come at short notice.

“Industries have not prepared for it and the costs will fall directly on farmers at a very difficult time,” he said.

He added that while nobody would argue against the aims of the new tax, its application in this case risked undermining voluntary recycling efforts by many farmers, who have been paying around £60 per tonne for used wrap collection. Adding extra costs could reduce participation in such schemes, he said.

Rethink was needed

NFU Deputy President Stuart Roberts had also called for a rethink, noting that coffee pods and boil in the bag rice packets were exempt from the tax, despite often proving far harder to recycle and clear alternatives being available.

He added: “The NFU would like government to support improvements to domestic recycling of more contaminated plastic feedstocks such as silage wrap.

“This could improve the circular waste economy and minimise costs for recycling plastics used on farms.

“In the longer term, we are also calling for further support to develop affordable, technically suitable silage films produced with more recycled content, or from bio-based alternatives.”

Hear NFU President Minette Batters talk about our work on removing silage wrap from the government's plastic packaging tax.

Timeline: How the NFU saved British farming £4million in just over one month


Ask us a question about this page

Once you have submitted your query someone from NFU CallFirst will contact you. If needed, your query will then be passed to the appropriate NFU policy team.

You have 0 characters remaining.

By completing the form with your details on this page, you are agreeing to have this information sent to the NFU for the purposes of contacting you regarding your enquiry. Please take time to read the NFU’s Privacy Policy if you require further information.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.