Recycling and circular economy specialist Reconomy says the decision risks undermining investment confidence and slowing the development of domestic recycling capacity.
The government intends to introduce the necessary legislation in autumn 2026. Once the new rules take effect, local authorities across England will be required to collect plastic films and flexible packaging directly from households as part of their kerbside recycling services.
Limited recycling capacity cited as key reason
According to David Gudgeon, Head of External Affairs at Reconomy, the postponement is not unexpected given the UK's current shortage of facilities capable of processing flexible plastic packaging.
However, he argues that the decision sends the wrong signal to companies that have already invested heavily in expanding domestic recycling infrastructure based on the government's earlier policy commitments.
"It is disappointing given that the original guidance published in 2024 included the earlier timetable. Businesses across the sector, including Reconomy, have invested to strengthen domestic infrastructure for recycling flexible plastics," Gudgeon said.
Industry fears declining investor confidence
Reconomy believes the revised timetable could weaken investor confidence and create uncertainty around future investments in recycling facilities.
The company also warns that the delay raises questions over whether Scotland and Wales will follow England's revised schedule or continue with their own implementation plans, potentially increasing policy divergence across the UK.
Calls for long-term policy certainty
Reconomy is urging the UK government to provide clear and long-term policy certainty for the recycling sector.
According to the company, stable regulatory frameworks are essential if businesses are to continue investing in the infrastructure needed to recycle flexible plastic packaging domestically and support the transition towards a fully circular economy.
Fact box: "Flexible plastic packaging"
Flexible plastic packaging includes products such as plastic films, pouches, wrappers and other lightweight packaging commonly used by the food and retail sectors. These materials are significantly more challenging to recycle than rigid plastics and require dedicated sorting and processing infrastructure.
Source: Reconomy.