A new packaging tax introduced by Labour could increase the price of alcohol as customers face the brunt of the rises. The levy could hike a pack of 12 beers up by £1, with pubs, brewers, and supermarkets passing on the costs to consumers.
The new tax, known as the Extended Producer Responsibility (EPR) for Packaging, will see retailers or producers charged per tonne of packaging they use. The idea behind the move is for businesses to pay for the recycling. Costs will vary depending on the materials used, with plastic having the greatest fee and glass and metal seeing a larger figure added to prices, too.
Companies are expected to pass these extra levies onto households in another major blow to Brits since Sir Keir Starmer’s party took power in July 2024.
Data from the British Beer and Pub Association (BBPA) show that the new packaging tax will add 5p to every 330ml bottle of beer and 7p to a 500ml bottle of ale.
For a 12-pack of bottles, an extra 84p will be added to the price.
CEO of the BBPA, Emma McClarkin, told The Sun: “These new fees could push up the price of iconic British beers which will be a massive blow to brewers, pubs, and punters.
“UK brewers make an average of just 2p profit per bottle of beer, so they’ll have no choice but to pass on extra painful costs to the consumer or possibly end up being forced to leave the market entirely.”
The BBPA has also warned that the packaging levy would result in pubs paying twice to dispose of bottles—a potential extra cost of £60million. This is because bottles are classed as household waste, even though the establishments already pay the commercial waste charge.
EPR requires businesses that manufacture, import, or sell packaged goods to bear the full costs of managing packaging waste. This includes expenses related to collecting, recycling, and disposing of packaging materials. The objective is to incentivise producers to design more sustainable packaging solutions and reduce waste at the source.
