A study reveals that the UK could potentially earn £900m annually by processing and reusing its plastic waste domestically

25 November 2025 , 13:57

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A study reveals that the UK could potentially earn £900m annually by processing and reusing its plastic waste domestically

According to research, the UK could eliminate its dependence on exporting plastic waste by 2030, creating 5,400 new jobs and taking responsibility for the environmental impact of its waste.

The report indicated that up to 15 new recycling facilities could be established by the end of the decade, drawing in more than £800 million in private investment. This increase in capacity would help generate nearly £900 million in economic value annually, providing at least £100 million in new tax revenues each year.

The report by Hybrid Economics comes as the UK's plastic exports increased by 5% in 2024 to nearly 600,000 tonnes of waste.

Exporting plastic creates environmental issues for many receiving countries that lack the capacity to recycle it. The report also argues that it deprives the UK recycling industry of valuable feedstock.

Campaigners are calling for the closure of the loophole that makes exporting plastic waste cheaper than recycling it in the UK.

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Exports have surged in the first part of this year, particularly to Indonesia—a country grappling with an environmental crisis due to plastic pollution—amounting to over 24,000 tonnes.

The report stated that by exporting the unprocessed plastic waste it generates, the UK is shirking its responsibility to handle its own waste and denying itself an economic opportunity.

The Guardian reported last month that, in the past two years, 21 plastic recycling and processing factories across the UK have closed due to the scale of exports, the low price of virgin plastic, and an influx of inexpensive products from Asia.

Neville Hill, partner at Hybrid Economics, which produced the report, said the UK was only utilizing half of its potential for recycling plastic waste. He stated: “Ending exports of unprocessed plastic packaging waste by 2030 would allow the UK to take control of its environmental responsibilities and seize a clear economic opportunity.

“Our analysis shows the sector can grow significantly without requiring public funds, as long as the government establishes the appropriate framework.”

The current payment structure incentivizes the export of plastic waste instead of encouraging businesses to keep it in the UK for recycling.

Grace Cooper