Climate Change Levy rates (CCL)

The 2024 Autumn Budget announced that the Finance Bill 2024-25 will implement changes to the CCL rates, effective from 1 April 2026. These changes will increase the main CCL rates for electricity, gas, and solid fuels in line with the Retail Price Index (RPI), while the main rate for liquified petroleum gas (LPG) will remain frozen, ensuring consistency between LPG and other portable fuels for commercial premises not connected to the gas grid. These changes seek to ensure that the CCL aligns with inflation, maintaining the incentives for energy efficiency.

 Plastic Packaging Tax (PPT) rate

The Budget announced that, to incentivise businesses to use recycled instead of new plastic in packaging, the government will increase the PPT rate for 2025-26 in line with the Consumer Price Index inflation. HM Revenue and Customs (HMRC) has also published the response to its July 2023 consultation on the adoption of a mass balance approach for chemically recycled plastic in PPT.

The response confirms that businesses will be allowed to utilise a mass balance approach account for chemically recycled plastic for the purpose of PPT. There will be no change to the exemption for the immediate packaging of human medicines for the foreseeable future. It also clarifies that once these changes come into force, pre-consumer waste will no longer be classified as recycled plastic for the purposes of PPT.

The government intends to engage in further technical engagement before finalising the effective date and publishing draft legislation for technical consultation.