UK Firms Warn New Packaging Tax Will Increase Prices of Many Goods
A new UK packaging tax aimed at funding recycling is expected to raise the prices of products like soft drinks, beer, kitchenware, and small appliances. Companies warn that high costs for materials like glass under the Extended Producer Responsibility scheme could lead to significant price increases, affecting both sales and profits. The Department for Environment, Food, and Rural Affairs is discussing alternative approaches with the industry to mitigate economic impacts.
A new packaging tax designed to fund recycling in the UK is expected to drive up prices on various products, including soft drinks, beer, kitchenware, and small appliances.
Pev Manners, managing director of Belvoir Farm, highlighted the high preliminary costs for glass under the Extended Producer Responsibility (EPR) scheme set to start next year.
Companies like Belvoir Farm and Fentimans foresee significant price increases on their products due to the tax, potentially wiping out their annual profits.
The EPR will shift recycling costs from councils to companies using the packaging, with rates for materials like glass estimated between £130 to £330 per tonne.
Industry groups fear that such increases will adversely affect sales and consumer prices.
The Department for Environment, Food, and Rural Affairs (Defra) is discussing more viable approaches with the industry, including alternative cost calculations.
Initiatives like the UK's deposit return scheme (DRS) are not set to begin until 2027, which could unevenly affect businesses using different packaging materials.
The policy aims to lessen the environmental burden of used packaging and improve recycling rates but has sparked concerns about its economic effects.
Pev Manners, managing director of Belvoir Farm, highlighted the high preliminary costs for glass under the Extended Producer Responsibility (EPR) scheme set to start next year.
Companies like Belvoir Farm and Fentimans foresee significant price increases on their products due to the tax, potentially wiping out their annual profits.
The EPR will shift recycling costs from councils to companies using the packaging, with rates for materials like glass estimated between £130 to £330 per tonne.
Industry groups fear that such increases will adversely affect sales and consumer prices.
The Department for Environment, Food, and Rural Affairs (Defra) is discussing more viable approaches with the industry, including alternative cost calculations.
Initiatives like the UK's deposit return scheme (DRS) are not set to begin until 2027, which could unevenly affect businesses using different packaging materials.
The policy aims to lessen the environmental burden of used packaging and improve recycling rates but has sparked concerns about its economic effects.
