New ‘Simpler Recycling’ legislation being brought in under the Environment Act 2021, will require all businesses with 10 or more employees to separate dry mixed recyclables, paper and card, and food waste from their general waste, prior to collection from their premises.
The survey highlighted that as well as a lack of awareness among both SMEs and hospitality businesses, many are concerned about a variety of factors from cost to lack of resources, and ensuring compliance with the food mandate will be a significant challenge for all sectors.
For those not compliant with the new recycling rules, fines and civil sanctions could be handed out, which for SMEs could be catastrophic.
We found that nearly a quarter of SMEs didn’t even know about the upcoming legislation and of the industries surveyed, those in the hospitality sector reported the lowest level of awareness at just 62%, compared with a 78% average. With the food waste recycling mandate, these businesses are likely to be the most impacted by the legislation.
Perhaps one of the biggest changes for all businesses will be the new rules surrounding the separation of food waste for recycling.
The hospitality sector is going to be one most affected by this requirement and while 88% of hospitality businesses are already separating some waste for recycling, only 34% are currently separating their food waste. With 920,000 tonnes of food wasted by hospitality and food service outlets each year1, and the average UK hospitality business spending up to £50,000 every year on sending food waste to landfill2, it’s clear that the industry has some substantial changes to make ahead of the March deadline.
Organic waste rules will also affect the vast majority of SMEs with 83% reporting that they generate food waste on their premises, but over three quarters not currently separating that for recycling. Not only do businesses not want to get fined for their food waste, but they should also note that landfill taxes are set to rise by 20% in April 20253. The sooner businesses start to separate their scraps for recycling, the sooner they will start to save.
As the deadline approaches, 93% of hospitality leaders and 81% of SMEs expressed concern about the impact of new legislation on their businesses.
We asked both groups about some specific concerns including:
For large hospitality businesses, the top concern was the timescales to make the changes (55%), followed by cost (51%) and lack of knowledge (49%). Restaurants in particular are worried about timescales (72%), while bars showed concern about a lack of knowledge (64%), and catering companies (55%) and fast-food restaurants (54%) said they are most worried about reputation.
While SMEs registered a lower level of concern than larger businesses - 78% vs 97% - (with lower awareness of the legislation), the top concern for these respondents was the cost to implement the changes needed (36%). 31% were worried about the timescales needed to make the changes, with over a fifth saying they thought they’d either miss the 31st March deadline or they did not yet have a planned timescale to make the changes.
Aside from your legal obligations, it’s important to remember that better recycling is better for business. Get ready for new rules with these simple steps:
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About the survey
The research was conducted by Censuswide, among a sample of 300 decision makes with responsibility for waste and recycling management in England (18+). The data was collected between 25.07.2024 - 31.07.2024. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct and ESOMAR principles. Censuswide is also a member of the British Polling Council.
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