Commons Sense

House of Commons · Westminster Hall

Taxation: Silage Film

18 January 2022 · 3 other contributors · 4,157 words

Opened by Nigel Mills Con Amber Valley

Responding minister: Helen Whately

TaxationAgriculture & Rural AffairsEnvironment

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Nigel Mills raised concerns about taxation: silage film in Westminster Hall. A government minister responded.

Key points

  • Nigel Mills is concerned that silage film has been included in the plastic packaging tax by HMRC without prior warning.
  • Mills argues that this inclusion will harm farmers and industries relying on recycled plastic, as no preparations were made.
  • Mills requests HMRC to correct or withdraw its guidance on silage film before April 1st, citing four main reasons.

Key requests to Government

Mills requests that HMRC correct or withdraw its guidance on silage film before April 1st, citing four main arguments: the primary purpose of silage film is not packaging; it does not align with the policy intent to encourage recycled material use; it falls outside the definitions in the Finance Act 2021; and it will harm farmers at a challenging time.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Nigel Mills Con Amber Valley

Nigel Mills is concerned about the inclusion of silage film in the plastic packaging tax, which was unexpectedly announced by HMRC just before Christmas. He argues that this will impact farmers and industries that rely on recycled plastic, as it was not anticipated and no preparations were made for such a change. The primary purpose of silage film is to ferment grass into silage for animal feed rather than simple packaging, and Mills points out that recycling the film has been difficult due to enforcement issues. He also states that the tax will hinder efforts to recycle this type of plastic and reduce farmers' competitiveness internationally.

Other contributors (3)
  • Douglas Ross

    He expressed gratitude towards his colleague's well-researched speech and declared an interest due to his farming background before entering politics. He highlighted that agriculture only accounts for 3% of plastic use in the UK, with silage film representing a small part of this, suggesting that current measures may be too heavy-handed. Farmers cannot operate without silage film, which is integral to producing silage. Did any farming unions contribute to the consultation on the tax change?

  • John Howell Con Henley

    John Howell agrees with Nigel Mills, emphasizing that silage film is not packaging but serves the primary purpose of converting grass into silage. He references a previous Environment Agency document supporting this view.

  • Robbie Moore Con Keighley and Ilkley

    He declared a family connection to farming and plastic recycling, agreeing with the point that silage wrap should not be classified as packaging but is essential for grass fermentation. He urged the Treasury to understand this distinction in order to address legislation and taxation appropriately. Silage wrap is used for fermentation to produce silage and should not be classified as packaging in isolation. The Minister should explore this point.

Government Response

Helen Whately

It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate my hon. Friend the Member for Amber Valley on securing the debate and on his comments. Plastic waste is a significant environmental threat as plastics do not decompose and can last centuries in landfill sites. The Government are determined to use our battle against pollution and climate change to make a positive difference to people's lives and the wider economy, focusing on developing the right incentives for businesses to support the green economic transition. This includes the introduction of a 5p levy on single-use plastic bags in 2015, leading to more than a 95% drop in plastic carrier bag sales in England's main supermarkets, followed by doubling the levy to 10p last year. The Government estimate that the tax will lead to around 40% more recycled plastic being used in packaging in 2022-23 and save nearly 200,000 tonnes of carbon dioxide. The design and structure of the plastic packaging tax reflects extensive stakeholder consultation, including two design consultations in 2019 and 2020 and three technical consultations on the legislation. Treasury and HMRC officials met Berry BPI, a plastic packaging manufacturer based in my hon. Friend's constituency. Silage film meets the definition for the tax as it is suitable for use in the supply chain for the containment of silage and can also be used by farmers—the main end users—to make their own silage. Although silage film can be part of the process of turning grass into silage, this does not exempt it from falling within the definition for the tax. The definition is targeted so that it does not include plastic packaging products that are essential for goods to be used, in contrast to products that are essential for goods to be manufactured. I am happy to get back to my hon. Friend on the conversations that have taken place with different sectors, including the agriculture sector, as part of work done over the last couple of years on the introduction of the tax. The definition is set such that it does not include plastic packaging products that are essential for goods to be used, but where single-use plastic is required for something to be made, as is the case with silage, it falls within the definition.

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