Customers face paying more for wine and beers following the introduction of a so-called “glass tax”, industry bosses have warned. The Government announced the final costs of a scheme that will force producers of packaging to pay for its disposal.
Under the new policy, a standard bottle of wine could cost around 7.2p more and the cost of a 330ml beer bottle will rise by around 3.2p. The levy will add 8.8p to the cost of a bottle of spirits.
Alex MacDonald, director at North Point Distillery, on behalf of the UK Spirits Alliance, said “As an industry, we are fully supportive of the principle behind the Government’s sustainability agenda. However, punishing fees for glass will hurt business and increase the price of drinks for consumers.
“The Government has started to listen, and today’s announcement is a small step in the right direction.”
The green levies also apply to aluminium, plastic, cardboard and wood but glass is expected to take the biggest blow because materials are calculated by weight and the difficulty and expense of collection and disposal.
Figures published in December initially indicated that glass would be hit the hardest, with a charge of as much as £240 a tonne.
But fury from the industry meant final figures released on Friday showed glass’s rate is £192 a tonne.
The final figure was slashed after an industry backlash warning of more expensive products and the extinction of the beer bottle.
Miles Beale, chief executive of the Wine and Spirit Trade Association, said: “Wine and spirit businesses have been waiting a long time for confirmation of glass price fees and while the final Extended Producer Responsibility (EPR) prices announced today provides financial certainty for accounting purposes, the scale of the glass fees confirms industry fears.
“These hefty EPR fees are still significantly more per unit compared with charges across Europe, eight times more than in Germany, and three times more than in Croatia or Finland.”
He added: “There is no time to avoid these fees for produce sold this year. This is especially impactful on SMEs and importers who need time to make changes and may not have revenues to cover these unknown costs.
“This news is another blow to the sector, which is already reeling from consecutive duty hikes and whose margins are already tight. Having to pay the highest EPR fee for glass will force businesses to pass the costs onto consumers, pushing up inflation while – perversely – encouraging the use of cheaper and less sustainable packaging alternatives.”
Ministers hope to raise £1 billion a year from the policy, which was announced by Baroness May’s government in 2019, with the funds set to be redirected to councils.
The charge is intended to encourage manufacturers to use environmentally friendly materials.
The Government has been contacted for comment.