Yes we certainly do. The way it works is that we separate cardboard/large packaging, metal, wood, plasterboard, paint, oil, oily rags, copper/bronze and food wastes. Everything else is goes into what is called the general waste system and included in this are currently plastic bottles.
The above separated waste streams are sent off and recycled/reused and then the general waste goes off site to a mixed recycling facility and any quality recyclables i.e. plastic bottles are picked out. The residual waste goes to recovery where it is then shredded and used for refuge derived fuel which is burnt to produce energy.
There are a lot more factors that influence this process but this is the basis of how it works and nothing potentially goes to landfill.