There are warnings that a new tax designed to encourage environmentally friendly packaging will increase the prices of bottles of wine and beer. The head of the trade association representing pubs and breweries has expressed concerns that the plans could put jobs at risk due to the increased costs.
Under the scheme, a standard bottle of wine will reportedly go up by 9p and a 330ml bottle of beer will rise by around 11p. The green tax is part of the extended producer responsibility (EPR) system which has drawn criticism from industry experts. It is expected the Government will announce the final cost of the scheme, which will change the recycling responsibilities of packaging producers, on Friday.
It is thought glass manufacturers could be the hardest hit by the levy which is calculated by weight and the difficulty and cost of collection and disposal, reports say.
One industry source told The Telegraph that the “ill-thought-out policy” could be a “hammer blow” to glass makers.
“British workers are producing sustainable glass, yet the Government seems hell-bent on selling them down the river,” the source said.
“The public does not want their wine served in plastic, or a price hike on glass bottles in a cost of living crisis. If this leads to more plastic being used, then it’s a lose-lose policy.”
Critics argue glass, due to its weight, is being hit harder despite being more recyclable and environmentally friendly than materials such as plastic or cardboard.
The Government says the new policy, first announced by the Tories in 2019, will raise more than £1 billion per year to improve recycling collections.
But Emma McClarklin, chief executive of the British Beer and Pub Association, warned the costs could significantly hit some brewers and pubs.
She told The Telegraph: “The current regime will ultimately mean extra cost for the consumer, could force some brewers to leave the glass bottle market, and consequently risk jobs and undermine investment.
“These new costs are an own goal, as they will seriously damage wafer-thin profits that brewers and pubs make and jeopardise jobs and growth. EPR is the exact opposite of what the Chancellor wants to achieve.”
Miles Beale, chief executive of the Wine and Spirit Trade Association, said his body accepts the principle but warned the EPR is “flawed” and costs are “far too high”.
“There is a very high risk that EPR both fails to improve environmental outcomes and proves outlandishly expensive for businesses – costs that will have to be passed on to UK consumers,” he said.
In response, a Government spokesman said: “We are cracking down on waste as we move towards a circular economy, with EPR for packaging being a vital first step.
“Throughout development of the EPR scheme we have engaged extensively with the glass sector and for recyclable materials like glass, we are clear there will be fee discounts.
“We will shortly be setting out the confirmed base fees, which will generate more than £1 billion annually to improve recycling collections, benefitting every household across the country.”