Calls to release circular economy plans
More than 50 leading businesses and trade organisations have signed a letter calling for the UK Government to release circular economy plans. The letter’s signatories, who include IKEA, Virgin Media O2, REA (Renewable Energy Association), TechUK, UKFT, and the Packaging Federation, have written to Defra (Department for environment food and rural affairs) urging the government to publish its long-delayed guidance. The ‘Circular Economy Growth Plan’ as it is known, has now been held back by more than six months, having originally been planned for release in October last year.
The strategy was set to build on recommendations from the Circular Economy Taskforce, a group composed of experts in material innovation and waste management[i]. The Taskforce, which was established in November 2024, previously identified six high-impact sectors to prioritise: textiles, transport, construction, agri-food, chemicals, and plastics, with each sector set to receive a tailored roadmap, co-developed with businesses, to reform materials use and reduce environmental and economic waste. These plans are intended to complement the overarching Circular Economy Strategy, offering sector-specific support while promoting systemic change.
Yet with no sign that the plan will be launched, businesses are concerned that the ongoing delay “will harm momentum towards a more resilient, resource efficient economy.”
Signatories of the letter argue that at a time of heightened economic insecurity and cost of living pressures, the Circular Economy Growth Plan should outline a clear direction from the government on accelerating changes proven to cut costs, improve competitiveness and enhance industrial performance. The businesses are highly aware that, done right, the circular economy would be a source of new jobs and that it will help to address public dissatisfaction around waste.
The plan is expected to focus on ending the throwaway society and futureproofing the economy, including by introducing better systems to prioritise remanufacture and reuse of valuable products and resources, rather than just discarding them, and ensuring high product quality and access to repair for consumers.
Libby Peake, head of resources and senior fellow at Green Alliance, has said:
“The delay to this hotly anticipated plan is really frustrating for all kinds of businesses and is bad news for consumers. At a time when we need every tool in the box to create greater economic resilience, holding back on this transformative plan makes no sense. It’s an obvious way to protect business supply chains, stimulate jobs and growth and keep prices down for consumers. The government should stop procrastinating and give businesses, the wider economy and the general public something all the evidence shows is needed now.”[ii]
Trevor Hutchings, CEO at REA has drawn attention to the benefits improved circularity can have, particularly with regards to resilience and security:
“The war in the Middle East highlights the need to reduce our reliance on concentrated international supply chains and to make better use of our own resources by moving to a circular economy. By increasing the circular management of critical minerals, biodegradable wastes and other resources, we can turn a domestic challenge into a strategic asset.”[iii]
He adds:
“The circular economy is a jobs and growth opportunity. It will drive efficiencies, lower bills and strengthen the UK’s long-term energy and nutrient security. Now more than ever we need clarity from government to drive progress, so we support the call for government to publish the Circular Economy Growth Plan without delay.”[iv]
References
[i] Circular Economy Taskforce - GOV.UK
[iv] Ibid
