Fareham Borough Council is set to be given a wad of cash as the government tries to tackle the amount of rubbish from packaging.

In new government moves to combat the impact of packaging on the environment, businesses involved in providing packaging will have to pay fees.

The government will then pass that money on to local councils to help them dispose of the packaging.

Fareham Borough Council can expect to receive £704,000 as part of the extended producer responsibility scheme, councillors have heard.

It is expected to be introduced in April by the Department for Environment, Food and Rural Affairs (Defra).

It means businesses with a packaging activity of a certain size will have to pay a fee to dispose of their packaging products at the end of their life. Companies will also need to collate and submit data to Defra.

The policy is designed to hold packaging producers responsible for the environmental management of their products throughout their lifecycle, including after they are used by consumers. 

Council officer Mike Gore’s presentation to Monday’s streetscene scrutiny panel estimated the council will receive £704,000 in 2025/2026. 

The new rules to pay recycling fees apply to individual businesses, a subsidiary or a group with a turnover of £1million or more supplying or importing more than 25 tonnes of packaging to the UK market. Charities are not included.

They will cover businesses that supply packaged goods to the UK market under their own brand, place goods into packaging, import products in packaging, own an online marketplace, hire or loan out reusable packaging and supply empty packaging. It also includes anything that’s designed to be filled at the point of sale, such as a coffee cup. 

The scope of packaging materials covered include aluminium, fibre-based composite, glass, paper and card, plastic, steel, wood and other materials, and businesses will be charged from 2025, based on data submitted for 2024, according to the government.

From 2026 onwards, council payments are expected to reduce each year as packaging producers review their packaging processes.

Moving forward, the council’s performance will also be measured by the scheme administrator. A failing authority that is less efficient will face improvement measures and failing to improve could mean losing up to 20 percent of any allocated payment.