The Circular Economy Growth Plan

Introduction

What do businesses need to know about the forthcoming Circular Economy Growth Plan?

First, here’s the background. For years, businesses have operated within a system that treats resources as disposable. But with mounting environmental pressures and volatile supply chains, the economic and ecological costs have become unsustainable. The government's response is a systemic overhaul, championed by the Circular Economy Taskforce, established in November 2024 as an independent expert advisory group. The taskforce is developing a strategy to embed circularity into the fabric of UK industry and it is due to be published very soon.

As the country moves away from a linear 'take-make-dispose' model, it’s important for businesses to understand this all-encompassing transition. This is more than just a policy update; it's a re-evaluation of how we produce, consume and manage materials. It presents a significant opportunity for forward-thinking businesses to build resilience, enhance brand reputation and unlock new value.

Here's what you need to know about the changes on the horizon and how to prepare.

What is the Circular Economy Taskforce doing?

Chaired by Andrew Morlet, former CEO of the Ellen MacArthur Foundation, the taskforce brings together experts from finance, academia, manufacturing and policy development.

Its primary objective is to create a roadmap that moves the UK towards a circular economy, a model in which materials are kept in circulation at their highest value for as long as possible. The core aims are ambitious and interconnected:

• Stimulate economic growth: Create skilled green jobs and foster innovation in circular technologies and business models.
• Improve resource efficiency: Reduce the UK's reliance on finite raw materials and volatile global supply chains.
• Accelerate net zero: Lower emissions by minimising waste and promoting the reuse of materials.
• Reduce consumer costs: Deliver more durable, repairable and valuable products to the market.

The taskforce is not working in a silo. Its engagement with industry leaders, local authorities and environmental groups ensures the resulting strategy is grounded in real-world challenges and opportunities.

The Circular Economy Growth Plan: A new framework for UK industry

The publication of the ‘Circular Economy Growth Plan’ is expected in early 2026, and it’s the result of an 18-month review by the Circular Economy Taskforce.  Originally expected in the Autumn of 2025 (and formerly named the Circular Economy Strategy), the growth plan will likely set out how the UK’s progress towards circularity can be monitored and evaluated, along with how Government policy can prompt change.

This is a blueprint for ending the UK's "throwaway culture" and making reuse, repair and remanufacturing the norm. The objective of a circular economy is to build resilient systems that integrate each stage of a product's lifecycle, from design through to waste, and crucially, recycling materials back into manufacturing.

To make this vision a reality, the taskforce was asked to focus on five priority sectors where the potential for circularity is greatest:

1. Textiles
2. Transport
3. Construction
4. Agri-food
5. Chemicals & Plastics

For each sector, detailed roadmaps will be published, outlining specific actions, timelines and policy recommendations. While the full details are yet to be unveiled, what’s clear is businesses will be expected to take greater responsibility for the entire lifecycle of their products. This, in turn, aligns perfectly with the principles of Extended Producer Responsibility (EPR), a cornerstone of modern environmental policy.

Andrew Morlet, chair of the Circular Economy Taskforce, said at the time the sectors were announced: “Transitioning to a circular economy is an ambitious but crucial goal as this Government kickstarts economic growth and turns Britain into a clean energy superpower.

“Our taskforce will bring together industry, academic and policy experts with central and local government to ensure we maximise its potential fully by creating jobs, increasing resource efficiency and accelerating the path to net zero.”

ERP UK: Championing circularity in practice

At ERP UK, the principles of the circular economy are not new to us, they are embedded in our DNA. For two decades, we have been helping hundreds of businesses navigate the complexities of environmental compliance, turning regulatory obligations into opportunities for sustainable growth. Our work in our core compliance areas (WEEE, batteries and packaging) directly supports the circular model.

• WEEE (Waste Electrical and Electronic Equipment): The rapid pace of technological innovation has created a growing mountain of e-waste. Our WEEE compliance scheme ensures producers finance the collection, treatment and recycling of their products at end-of-life. This prevents hazardous materials from entering landfill and recovers valuable resources like metals and plastics, feeding them back into the manufacturing loop.
• Batteries: From electric scooters to household devices, batteries are essential to modern life. However, their chemical composition makes responsible disposal critical. We manage compliance for battery producers, funding accessible collection networks and ensuring that spent batteries are recycled safely. This process recovers valuable materials like lithium, cobalt and nickel, reducing the need for virgin extraction and strengthening supply chain security.
• Packaging: With the introduction of EPR for packaging and the Plastic Packaging Tax, producers are now financially incentivised to design for recyclability and to use recycled content. As well as managing compliance, we provide expert data management and consultancy services to help businesses accurately report on their packaging flows, optimise their systems and minimise their environmental impact and costs.

As part of the global Landbell Group, we draw on a wealth of international experience, bringing best-in-class circular economy solutions from across Europe to our UK customers. This global perspective is invaluable as UK businesses adapt to a new era of environmental accountability.

Your circular economy 'cheat sheet': Quick wins for your business

The transition to a circular economy can feel daunting, but progress can start with simple, practical steps. Getting ahead of the regulatory curve not only ensures compliance but also builds a more resilient and competitive business. Here are some quick wins to get you started:

• Conduct a waste audit: You can't manage what you don't measure. Analyse your waste streams to identify where the most significant volumes of waste are generated. This will reveal immediate opportunities for reduction and recycling.
• Rethink your packaging: Is your packaging excessive? Could you switch to materials with higher recycled content or that are more easily recyclable in the UK? Small changes can lead to significant cost savings under EPR and the Plastic Packaging Tax.
• Prioritise durability and repair: Design products that last. Offering spare parts and repair and re-sale services not only extends a product's life but also builds customer loyalty and creates new revenue streams.
• Explore 'product-as-a-service' models: Instead of selling a product, could you lease it? This model, where the producer retains ownership, creates a powerful incentive to design for longevity, easy maintenance and eventual take-back.
• Engage your supply chain: Collaborate with your suppliers to improve transparency and traceability. Ask them about the recycled content in their materials and their own waste management practices.
• Partner with an expert: Navigating the landscape of EPR, compliance and waste management can be complex. Partnering with a compliance specialist like ERP UK removes the administrative burden and provides the strategic insight needed to turn compliance into a competitive advantage.

The future is circular. Are you ready?

The upcoming Circular Economy Growth Plan will accelerate the UK's journey towards a more sustainable and resource-efficient future. For businesses, this means the pressure to adopt circular practices will only intensify.

Those who act now will be best placed to thrive. By embracing circular principles, you can reduce costs, mitigate supply chain risks, enhance your brand reputation and meet the growing customer demand for sustainable products.

Navigating this transition requires expertise and a reliable partner. At ERP UK, we simplify the complexities of environmental compliance, providing data-driven solutions and strategic guidance to help you achieve your sustainability goals.

Read our recent blog outlining ERP UK’s commitment to the circular economy here.

If you're ready to get ahead of the curve on your WEEE, battery or packaging compliance, contact our team of specialists today and let us help you turn your environmental obligations into a strategic advantage.

Related services

WEEE compliance - visit our webpage here

Battery compliance - visit our webpage here

Packaging compliance - visit our webpage here

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