DS Smith calls for greater UK investments in packaging and alignment with EU industry

02 Aug 2024 --- DS Smith’s group chief executive Miles Roberts believes now is an “excellent” moment for the new Labour government to reset Britain’s relationship with the EU to support more efficient trade. He flags the imperative of packaging industry investments and the need to align with EU trade standards.

“The EU is developing new legislation, but the UK is not keeping pace with the new standards which creates automatic divergence with our biggest trading partner, and generates avoidable costs to business,” says Roberts. 

“We need regulatory alignment – unless something is demonstrably not in the UK’s own interest, then we should be considering aligning with EU rules, so that we have less friction.” 

Supporting UK manufacturing 
DS Smith stresses a growing UK manufacturing base could have a significant and positive effect on the economy.

Alongside regulatory alignment with the EU, it flags that it is crucial that the government sets out a long-term plan for infrastructure and energy solutions. 

Additionally, it maintains the UK will be a more attractive option for investment into manufacturing if a clear energy plan is set out. 

“For manufacturers, energy sources are critical — we need to understand the source and cost of energy, how we connect to it, if the power supply is sufficient and how the grid will support it, before any planning to invest in new technologies or factories can happen,” says Roberts.

“Understanding the energy sources and connections, and how the grid’s capacity will be enhanced to accommodate this, is critically important.”

Understanding energy
Roberts says that a failure to maintain the standards of the region’s biggest trading bloc presents a cost, “but if we can make sure that standards are common, it will reduce cost to British business, and in turn, the consumer.” 

“Unless something is demonstrably not in the UK’s own interest, we should be asking why we aren’t aligning with EU rules.”

Aside from the need for regulatory alignment, Roberts asserts British businesses need a long-term national industrial strategy that will support higher levels of investment and growth.

“For our part, DS Smith has already invested into lower-carbon facilities in Italy and Poland, and into greener technologies in Germany, France and Spain, because we have ambitious decarbonization targets and the industrial and energy policy frameworks in those countries are made clear. With a clear plan, the UK can underscore why it is an attractive place to invest, and growth can follow.” 

Recently, Packaging Insights spoke to UPM Raflatac’s sustainability director Robert Taylor about the effects of the EU’s Packaging and Packaging Waste Regulation on the UK.