UK's plastics and washed aggregates sectors issue alert to government amid Middle East conflict
Warnings of disruption to critical markets and calls for a National Emergency Plan for Fuel.
The Washed Aggregates Trade Association (WATA) warns that that its members, and the wider waste and recycling industry, are increasingly exposed to both a fuel shortage and ongoing price volatility, as the war in the Middle East continues to affect global oil supply routes.
The trade body outlines how the UK’s £24bln waste and recycling sector supports more than 140,000 jobs and underpins a construction industry worth over £100bln annually.
Within this, the supply of recycled and washed aggregates play a critical role in delivering sustainable materials, maintaining environmental standards, supporting construction supply chains, and ensuring the responsible management and reuse of materials across the UK. However, the whole sector is dependent on reliable and affordable fuel for transport, processing and site operations.
Andy Hill, CEO of WATA, comments, 'While we recognise that this is a fast-moving and complex global situation, it is vital that government provides clarity and sets out how it plans to safeguard essential industries if disruption continues, including confirming which sectors are deemed critical and how access to fuel for these sectors will be protected in the event of shortages.
'We’re particularly concerned that, in the absence of a clear action plan, waste and recycling operators could face significant operational challenges whether through fuel shortages, restricted access or further increases in cost.'
WATA is calling on the government to:
- Urgently communicate how it will implement its National Emergency Plan for Fuel and its prioritisation strategy for essential sectors
- Prioritise the waste and recycling sector for fuel in the event of any supply issues, as was done during the Covid pandemic
- Allow the temporary use of red diesel for businesses in the sector operating machinery, including washed aggregate plants
- Cut taxes on fuel duty and suspend the forthcoming fuel duty rise for business in the waste and recycling industry
Meanwhile, a survey carried out by the British Plastics Federation (BPF) last month amongst its member firms reveals that an overwhelming 98% of companies have experienced increases in raw material or operational costs. Over 63% of businesses have seen orders delayed or cancelled.
The impact is not confined to the availability of virgin polymers but also includes additives, masterbatch, components and machinery and equipment. It has also prompted an increase in freight charges. Sourcing from the Far East has become extremely difficult.
In a statement, the BPF says, 'The plastics industry occupies a strategic position in the UK economy. As the third largest manufacturing sector, it employs 145,000 people, has a turnover of £30.7bln and is one of the UK’s top ten exporting sectors.
'Disruption is likely to be experienced in critical markets – the supply of fresh food and water, defence, healthcare, mobility, and the digital and energy infrastructures.'
They are urging the government to:
- Relieve the energy costs sustained by companies in the UK plastics industry.
- Review impending regulations with financial implications.
- Ringfence and reinvest the Plastics Packaging Tax funds in the UK recycling infrastructure.
- Secure supply routes via diplomatic intervention.
Philip Law, BPF’s Director-General, says 'For many companies the threat posed by the US-Iran war is existential. To help ensure the survival of our industry and to protect jobs, costs will have to be passed on down the supply chain. We look to all companies to act responsibly.
'The UK has had a growing dependence on the Middle East as a source of feedstock and polymers. The war has had an exaggerated impact on the UK’s plastics industry as the UK imports more than half of its plastics raw materials. The UK Government should be acutely aware of this vulnerability in the UK’s security and act to protect an industry so central to our national interests.'
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