July 27, 2025
4 mins read

£1.1 bn boost to improve local recycling services  

Under the current system, local councils bear the brunt of the costs associated with disposing of household waste, including items like milk bottles, cereal boxes, and soup tins

Circular Economy Minister Mary Creagh revealed that every town and city in the UK will receive a significant boost to their recycling services, with over £1 billion allocated to improve critical infrastructure and collections. This move is part of the government’s ambitious Plan for Change, aimed at revolutionising waste management and promoting a circular economy.

Under the current system, local councils bear the brunt of the costs associated with disposing of household waste, including items like milk bottles, cereal boxes, and soup tins. Taxpayers have long subsidised these expenses, but the new Extended Producer Responsibility for Packaging (EPR) scheme will shift the financial burden to the businesses that produce packaging. This change is expected to encourage companies to reduce packaging, switch to more recyclable materials, and design products that are easier to recycle and reuse.

Mary Creagh, Circular Economy Minister, stated, “This government is cleaning up Britain and ending the throwaway society. Under the Plan for Change, we are pumping more than £1 billion into local recycling services. This will revolutionise how we deal with our waste and ensure more of today’s rubbish is recycled into tomorrow’s packaging.”

The EPR scheme will charge fees to businesses based on the type of packaging they use, with higher costs for materials that are difficult to recycle and lower costs for reusable or refillable packaging. This financial incentive is designed to drive businesses towards more sustainable practices, ultimately reducing the amount of waste sent to landfills and incinerators.

For the coming year, councils in England will receive £1.1 billion to enhance recycling services for residents. This funding can be used to streamline recycling collections, ensuring that more household waste is processed and recycled. Additionally, the funds can support the construction of new infrastructure or the upgrading of existing facilities, such as Veolia’s Integrated Waste Management Facility in Southwark, which processes materials collected from homes and sends them to be turned into new products.

Jim McMahon, Minister of State for Local Government and English Devolution, commented, “Clean and tidy streets are something everyone wants to see, and these common-sense reforms will help councils achieve that. Whether it’s channelling more money into recycling or reforming the outdated funding system, we are fixing the foundations of local government so that it can focus on what matters most to people across the country.”

Industry leaders have also welcomed the government’s initiative. Gavin Graveson, CEO of Veolia UK, said, “We welcome the Government’s progress on the crucial suite of legislation that will help raise recycling rates, decarbonise and incentivise domestic infrastructure investment. We look forward to supporting our local authority partners to invest in the essential services they provide to collect and recycle more materials, as well as supporting brands and producers to not only design for recyclability but also include recycled content in their products. That’s how we’ll build a world-leading, profitable and sustainable circular economy.”

Jacob Hayler, Executive Director of the Environmental Services Association, added, “Our members stand ready to invest billions, alongside local authority partners, in the next generation of recycling services, infrastructure and jobs, which will provide a rapid boost to England’s stalled recycling rates. The new producer responsibility regime for packaging, alongside other measures to simplify recycling services, will unlock this investment and support our ambition to achieve a circular economy in the United Kingdom over the next decade.”

The Food and Drink Federation’s Director of Corporate Affairs and Packaging, Jim Bligh, expressed his support, saying, “This announcement is welcome news for both industry and consumers, coming just before producers receive their first invoices for EPR. It marks a vital step towards delivering the improvements in the UK’s recycling system that we all want and need. With a £1.4 billion annual investment from packaging producers into EPR, we’re pleased to see the government’s commitment to ensuring these funds will be used to upgrade infrastructure and resurrect our flatlining recycling rates.”

Adam Hug, environment spokesperson for the Local Government Association, noted, “It’s positive to see the costs of managing packaging waste shift to the industry creating this waste. Councils are proud to run some of the best recycling services in the world, with high levels of public satisfaction despite significant financial pressures. This success is built on council’s local knowledge and strong links with communities, and we hope the new scheme will support that work and help reduce the amount of packaging ending up in household bins.”

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Pakistan Risks Overstretching Itself in Yemen War

Pakistan’s expanding military role in Saudi Arabia amid the Yemen conflict could strain its defence resources and fragile finances…reports Asian Lite News Desk Pakistan’s military involvement in the war in Yemen may prove unsustainable because of mounting financial pressures and competing security demands, according to a new report. Islamabad’s growing military presence in Saudi Arabia risks stretching its defence resources while exposing the country to greater strategic and economic challenges. An article by Andrew Wilson in One World Outlook describes Pakistan’s involvement as a case of “fiscal and strategic overreach”, arguing that the country lacks the financial flexibility to sustain an expanded military commitment. Pakistan’s external finances depend heavily on an International Monetary Fund (IMF) programme, financial support from Gulf countries and remittances from Pakistani workers in the region. The report argues that deeper military involvement in the conflict could place additional pressure on these sources of financial stability. It also warns that deploying troops and military equipment abroad could weaken Pakistan’s capacity to address security challenges along its eastern border and deal with two domestic insurgencies. The move could also draw Islamabad into a conflict it has sought to approach cautiously. A Reuters report in May, citing Pakistani security and government sources, said Islamabad had deployed around 8,000 troops, a squadron of approximately 16 aircraft, mostly JF-17 fighter jets, two drone squadrons and a Chinese HQ-9 air-defence battery to Saudi Arabia. According to those sources, Riyadh was financing the deployment, with Pakistani personnel operating the equipment. The sources also said a confidential agreement contemplated the possibility of deploying up to 80,000 troops. Islamabad has not confirmed those figures, although it has acknowledged its military presence in Saudi Arabia, including the deployment of fighter jets at King Abdulaziz Air Base from April. The One World Outlook article argues that Saudi financial support can cover allowances and operating expenses but cannot easily replace military equipment needed elsewhere or resolve the political and strategic challenges of participating in the Yemen conflict. Pakistan’s defence budget is another concern. For the 2026-27 financial year, the federal government allocated PKR 3 trillion, or approximately $10.8 billion, to defence services. The allocation represents an 18 per cent increase from the original PKR 2.55 trillion provision and amounts to around 2.1 per cent of projected gross domestic product (GDP). Defence spending accounts for approximately 16 per cent of the federal government’s PKR 18.8 trillion expenditure. Military pensions are budgeted separately at PKR 822 billion, while debt servicing costs stand at approximately PKR 8 trillion, more than two-and-a-half times the defence allocation. The report argues that these competing financial obligations leave little room for additional military expenditure without placing further pressure on public finances. Pakistan’s reliance on IMF assistance also limits its fiscal flexibility. The country must meet the conditions attached to the programme, including a primary budget surplus target of 2 per cent of GDP and continued restraint on development spending. According to the article, these requirements make it difficult for Islamabad to finance an additional military commitment without compromising other budgetary priorities. Pakistan’s economic indicators offer limited reassurance. Economic growth for the 2025-26 financial year is estimated at between 3.6 and 3.7 per cent, while inflation reached approximately 10.3 per cent in September following an energy price shock. Foreign exchange reserves stood at around $21.5 billion at the end of September. Although this marks an improvement from the low levels recorded in 2023, the report notes that the reserves cover only a few months of imports. Financial assistance from Gulf partners remains central to Pakistan’s external stability. The article says Islamabad holds approximately $8 billion in Saudi deposits at its central bank. In July, the State Bank of Pakistan said Riyadh had extended the maturity of $5 billion in deposits to December 2028, easing the country’s immediate external financing requirements. A further $3 billion deposit was also extended in the spring. However, the article argues that these arrangements provide temporary relief rather than long-term financial independence, particularly as regional conflict threatens the stability of the Gulf economies on which Pakistan relies. The report concludes that Pakistan faces a difficult balance between supporting Saudi Arabia militarily and preserving the financial and military resources needed to address its domestic and regional challenges.
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