On 12 February 2025, the UK Office for the Internal Market (OIM) published a major report on the impact of restrictions on the sale of single-use plastics (SUPs) on the functioning of the UK internal market. The document, entitled “Report on the Impact of Restrictions on the Sale of Single-Use Plastics on the Operation of the UK Internal Market”, provides an in-depth analysis of the economic and logistical challenges of national single-use plastics regulations and how they impact trade between different jurisdictions in the UK.
Context of Single-Use Plastic Restrictions
In recent years, the UK has taken increasingly stringent measures to tackle plastic pollution, with a particular focus on single-use products. Restrictions such as bans on the sale of certain single-use plastic products, such as straws, cutlery, plates, and measures that increase the cost of single-use plastic products for consumers and producers have been introduced in order to incentivise the use of sustainable alternatives and protect the environment.
In the report, the OIM analyses how these policies, which vary between the UK nations (England, Scotland, Wales and Northern Ireland), can have a negative impact on the internal market. While the intent of these policies is positive for the environment, differences in national laws could disrupt trade, complicating the landscape for companies and increasing costs.
National Inequalities and Challenges for Companies
One of the key findings of the report is the inequalities in single-use plastics policies across the UK. While England and Scotland have adopted strong policies to reduce the use of single-use plastics, Wales and Northern Ireland have been slower to implement such measures.
This disparity creates challenges for companies operating in multiple jurisdictions, which face different regulations that impact the production and distribution of products. Companies must adapt their products to local laws, which leads to additional costs and logistical challenges. Furthermore, the report highlights that this fragmentation of policies can create distortions in the market, favouring some areas over others and damaging the competitiveness of companies operating nationally.
Internal Market Implications
Another important aspect of the report is its focus on the functioning of the UK’s internal market. Divergent regulations risk undermining the fundamental principle of free movement of goods within the UK, enshrined in the Internal Market Act 2020. This act is designed to ensure that national laws and policies do not harm trade between UK nations.
According to the report, if national laws continue to differ significantly, companies could face higher costs and increased administrative complexity, reducing economic efficiency. Companies could also be discouraged from expanding their business at national level if differing regulations between nations create barriers to trade.
OIM’s Recommendations
To address these issues, the OIM made some key recommendations:
- Harmonisation of policies: One of the main proposals concerns the harmonisation of regulations on single-use plastics between the different nations of the UK. The OIM suggests that a more coordinated approach could reduce trade barriers and make the internal market more efficient.
- Intergovernmental cooperation: The report encourages greater cooperation between national governments to ensure that environmental policies are implemented effectively, without hindering trade and business competitiveness.
- Evaluation of existing policies: The OIM suggests continuously monitoring and evaluating the impact of SUP policies to ensure that green objectives are achieved without compromising the efficiency of the internal market.
Conclusions: Balancing the Environment and the Economy
In summary, the report highlights the importance of balancing environmental needs with the economic needs of the UK. Restrictions on single-use plastics are essential to reduce environmental pollution and promote sustainable alternatives. However, it is equally important that these regulations are implemented in a way that does not damage the UK internal market and does not hinder the competitiveness of businesses.
The OIM therefore proposes a more coordinated approach that allows environmental objectives to be achieved without compromising the effectiveness of the internal market. Only through greater cooperation and harmonisation of policies between regions can the UK ensure an effective ecological transition, which benefits both the environment and the national economy.
