Circulating Value: Maximising UK's Economic Potential Through a Circular Economy

Sam Coggin • August 5, 2023

The Circular Economy in the UK: Potential Benefits and Key Challenges

For more than a decade, the Green Alliance and various business partners have been accumulating a wealth of evidence highlighting the importance of a circular economy. A circular economy offers a myriad of solutions to several problems faced by the UK, from environmental risks to economic challenges.


Traditionally, our economy has operated in a linear 'take, make, use and throw' fashion. Materials are extracted, goods are produced, sold, used, and eventually discarded, often after a very short lifespan. However, a circular economy could revolutionise this trajectory. In a circular economy, materials and products are kept in use for as long as possible through reuse, repair, remanufacturing, and recycling, preserving their highest value. This model reduces raw material consumption and mitigates the negative impact associated with waste generation.


A circular economy provides immense benefits. It lowers climate and environmental risks by reducing carbon emissions and minimises impacts on biodiversity, water, and air pollution. It also builds business resilience by reducing reliance on raw materials, three quarters of which are supplied from abroad.


Perhaps more significantly, it holds substantial potential for economic growth. Studies suggest that adopting a more circular economy could lead to significant growth in the UK, potentially increasing GDP by nearly one per cent by 2035 and contributing as much as £82 billion in gross value added by 2030. Additionally, it could support over 470,000 jobs across the country, particularly in sectors projected to face high rates of unemployment by 2035.


Moreover, a circular economy could help us wrestle control over material flows and prevent value from being lost, a priority already identified within the critical minerals supply chain, which faces numerous geopolitical challenges.


However, to realise this potential, government intervention is vital. It is recommended that the government prioritise a circular economy, integrating it as a crucial aspect of its industrial policy, and that the Treasury spearhead this change, given its role in coordinating government policy and overseeing tax and spending responsibilities.


To move circular business models from the fringes to the mainstream, government support is crucial. For instance, levelling the playing field between circular and linear businesses, offering financial assistance through a dedicated fund to support circular businesses facing high upfront costs, and improving understanding of tax impacts to meet environmental goals can all aid in making the shift.


Notable examples of businesses making strides towards a circular model include John Lewis, which operates several circular initiatives including furniture rental and circular design training, and IKEA, which offers a buy back and resell programme for old furniture, along with free small spare parts to extend product lifetimes.


However, transitioning to a circular economy is not without its challenges. One of the main barriers is the market preference for cheap, poor quality, easily accessible goods, which often come with substantial environmental costs not reflected in their price.


Which brings us to the topic of office furniture. It may seem a small detail in the grand scheme of a circular economy, but it exemplifies how circularity can benefit businesses and consumers alike. A desk or an office chair has a far longer potential lifespan than the time it spends in any one office. By creating a market for high-quality, reusable office furniture, businesses can reduce their environmental footprint, save money, and foster a sustainable approach to resource consumption. This is just one of the many ways in which the principles of the circular economy can be put into practice in everyday business operations.


The circular economy presents an exciting opportunity to enhance the UK’s economic resilience, reduce environmental impact, and create new jobs. However, it will take concerted effort from businesses, consumers, and the government to realise its full potential. Through the implementation of policies that promote circular business models, and the support of businesses taking the leap towards such models, the UK could significantly advance towards a sustainable and prosperous future.


Key Insights:


  1. Economic Potential: The circular economy represents a significant opportunity for economic growth. Estimates suggest it could boost the UK's gross value added by £82 billion by 2030, increasing GDP and creating numerous skilled jobs.
  2. Environmental Benefits: Adoption of circular practices would lead to reduced raw material consumption, waste prevention, and lowered environmental impacts related to production.
  3. Social Benefits: Increased affordability, community engagement, and job creation are critical social benefits linked with circular practices like resale and repair.
  4. Barriers for Businesses: Several challenges like disproportionate VAT taxation, poor circular logistics, and short lifetimes of poor-quality goods hinder businesses from adopting circular models.
  5. Barriers for Consumers: Cultural inertia, stigma associated with second-hand items, and concerns about convenience and high cost act as barriers to consumer adoption.
  6. Wider Economic Impacts: While circular economy fosters growth, it poses risks like the ‘rebound effect.’ Countries dependent on raw material export might lose out, demanding knowledge-sharing and assistance.


How the Treasury Can Help:


Level the Playing Field:

  • Change VAT: Encourage repair by zero rating it and adjusting VAT on other items to make circular practices more attractive.
  • Give Leasing Businesses Access to Tax Relief: Amend regulations to make leasing businesses eligible for tax relief schemes.


Provide Financial Assistance:

  • Dedicated Fund: Establish a fund (e.g., £800 million) to support and kickstart circular businesses and create infrastructure for circular logistics.


Understand the Impacts of Tax:

  • Environmental Impact Assessment: Understand how tax measures influence behaviour and environmental goals.
  • Engage with Public and Businesses: Address public concerns early on, understanding the complex motivations behind consumer choices, and remove structural barriers to change.


The push towards a circular economy in the UK is both a promising opportunity and a complex challenge. The potential economic, social, and environmental benefits are significant. However, achieving them requires concerted effort to overcome barriers, adjust taxation policies, provide financial support, and engage in continuous learning and dialogue with stakeholders.


The role of the Treasury, along with cross-governmental collaboration, is paramount in unlocking the potential of the circular economy. The outlined strategies and interventions provide a roadmap for leveraging this untapped economic opportunity and making a transition to a sustainable, efficient, and inclusive circular model.

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Stretching the Education Budget: How Refurbished Furniture Delivers Quality Without the Cost

By Ida Gorecka • July 7, 2025
Your education budget is under more pressure than ever. Whether you're managing a school, college, or university, you know the challenge: creating inspiring learning environments while budgets shrink and demands grow. According to research by the IFS , between 2010/11 and 2022/23, funding received by colleges for 16-19 education dropped by nearly a quarter, and adult skills funding was cut by more than half. Meanwhile, overall surplus levels fell for the sector as a whole from £2,290 million (5.6 per cent of income) in 2021-22 to £1,284 million (2.9 per cent of income) in 2023-24 ( source ). This financial squeeze is hitting at exactly the wrong time. Your students deserve quality learning environments, but premium furniture prices make this increasingly difficult to achieve. But what if there was a solution that delivered professional-quality furniture without the premium price tag? What if you could create the inspiring spaces your students need while actually saving money ? By choosing refurbished office furniture , you can stretch your budget 3-5 times further, receive furniture in days rather than months, and create premium-quality learning environments - all without compromising on the standards your institution demands. Curious to see what's available? Browse our current inventory of high-quality refurbished educational furniture - updated daily and ready for fast delivery.

The Hidden Costs of Buying New: Why Refurbished Office Furniture is the Smarter Investment

By Ida Gorecka • June 30, 2025
Planning your next office fit-out? Before you commit to that £50,000 furniture budget, consider this: the UK office furniture market reached £3.24 billion in 2024 ( source ), yet businesses are increasingly discovering that the "obvious" choice isn't always the smartest one. You’ve likely priced up premium ergonomic chairs at £800-£1,200, desks starting at £2,000, and meeting tables from £3,000+. Leading brands like Herman Miller and Steelcase come with quality-but also long lead times, hidden costs, and potential delays that can hold up your entire fit-out. But here’s what those new furniture quotes don’t mention: the true cost goes far beyond the price tag. Hidden expenses, long lead times, and missed opportunities can add up to serious disruption, something savvy businesses are now avoiding. On the other hand, refurbished office furniture that delivers the same premium quality, ergonomic support, and professional look-at 50-80% less, and available in days , not months. In this article, we’ll unpack the hidden costs of buying new and explain why choosing refurbished furniture is a strategic, value-driven decision for your office. If you're looking to save money, time, and hassle on your next office fit-out, get in touch or browse our refurbished range today.

Beyond the Skip: How Recycling Office Furniture Saves Money and the Planet

By Ida Gorecka • June 17, 2025
Are you still throwing perfectly good office furniture into skips? Every year, millions of pieces of furniture are discarded in the UK, with the majority going directly to landfill. Meanwhile, the standard landfill tax rate in the UK is currently £103.70 per tonne, and it's only getting more expensive. But what if there was a better way? What if that "outdated" desk or those "worn" chairs could actually save you money while keeping valuable resources in circulation ? Recycling old office furniture isn't just about doing the right thing environmentally; it's about making smart financial decisions that protect your finances. According to recent statistics , office furniture accounts for an estimated 8.5 million tons of furniture waste per year globally, yet 51% of furniture is reusable if we take into account items requiring slight repair. You're facing a choice every time you clear out your office. The skip route costs money and harms the environment. The recycling route saves money and creates value. Here's how recycling old office furniture can transform your business operations while delivering measurable savings. Want to see how much you could save by recycling your office furniture? Contact our team for a free assessment and quote.