New Government Circular Economy Strategy later this year

4 min read
12th May, 2025

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This marks a significant policy shift aimed at weaving circularity into both national and business sustainability plans. With the growing need to cut waste, save resources, and slash emissions, this strategy is expected to give businesses the clarity and confidence they need to innovate, invest, and future-proof their operations.

Big news from the UK Government – they’re set to roll out a brand-new Circular Economy Strategy later this year. 🌍 This marks a significant policy shift aimed at weaving circularity into both national and business sustainability plans. With the growing need to cut waste, save resources, and slash emissions, this strategy is expected to give businesses the clarity and confidence they need to innovate, invest, and future-proof their operations.

A Long-Awaited Policy Shift: Environment Secretary Steve Reed has confirmed that the new strategy will be released this autumn. It’s based on recommendations from the newly formed Circular Economy Taskforce, led by Andrew Morlet, the former CEO of the Ellen MacArthur Foundation.

This Taskforce, packed with experts in material innovation and waste management, has pinpointed six key sectors to focus on: textiles, transport, construction, agri-food, chemicals, and plastics.

Each of these sectors will get a customised roadmap, developed in collaboration with businesses, to reform material use and cut down on environmental and economic waste. These plans will complement the broader UK Circular Economy Strategy, providing sector-specific support while driving systemic change.

Why Now? The announcement comes in the wake of some pretty stark statistics: less than 60% of waste electricals are recycled, over 80% of plastic products still use virgin materials, and household recycling rates have been stagnant for over a decade.

Even more concerning, UK landfill sites now cover an area almost the size of Greater London. Reed emphasized the urgency, pointing out that around £22 billion worth of edible food, £4.5 billion in clothes, and £2.5 billion in usable furniture are wasted each year.

By moving away from the old “take-make-waste” model to a circular system, the UK aims to reduce its ecological footprint and boost economic resilience, especially in the face of global trade disruptions and raw material shortages.

The new strategy will build on the 2018 Resources and Waste Strategy (RWS), which introduced ideas like consistent recycling schemes, food waste collections, and a UK-wide deposit return system. Many of these initiatives were delayed due to the pandemic and political instability.

This updated strategy aims to fill those gaps while providing a stable policy framework for businesses. The Government believes this stability will give companies “the certainty to plan and the confidence to build and invest in new infrastructure.”

Final Thoughts – A Defining Moment for UK Circularity The UK Circular Economy Strategy is a huge opportunity for both businesses and the Government to align economic activities with environmental goals. While past delays have caused some skepticism, this strategy, if supported by strong legislation and effective implementation, could drive innovation, create green jobs, and significantly reduce waste and emissions.

For businesses, especially those in high-impact sectors, now is the time to get involved, prepare, and take action. Circularity is no longer a fringe issue; it’s quickly becoming a key factor in competitiveness, resilience, and compliance in a world with limited resources. To ensure your organization is ready to align with the emerging circular economy policies, check out our sustainability training courses designed to build practical skills across teams and embed sustainability at every level of your business.

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