Senior UK industry figures have issued a stark warning over the government’s new packaging tax, branding it “horrific” and economically damaging.
The finalised Extended Producer Responsibility (EPR) scheme, published by the Department for Environment, Food and Rural Affairs (Defra) on Friday, will make producers pay the cost of recycling their packaging from October.
Though the final fees are slightly lower than previous projections, business leaders across the retail, hospitality and food and drink sectors argue the levy will force companies to pass costs on to consumers or move operations abroad.
In a rare joint statement, lobby groups for the glass, pubs, whisky, wine, spirit and hospitality industries accused the government of ignoring repeated warnings from businesses. “The current EPR design does not meaningfully support the delivery of a circular economy, and adds a significant additional cost to businesses who use glass,” they said.
The British Retail Consortium (BRC), which had urged a delay, estimated the EPR would cost retailers £2 billion, just months after a £5 billion hit from employer national insurance hikes. “It’s inevitable this will add pressure on prices, adding to inflation,” said Andrew Opie, director of food and sustainability at the BRC.
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