A new government packaging tax coming into force on 1 October is set to push up the cost of everyday glass products, with the price of wine, beer and spirits expected to rise as a result.
The Extended Producer Responsibility (EPR) levy is aimed at increasing recycling rates among local authorities by passing on the costs of recycling onto the companies selling the products.
However, the government’s scheme will tax packaging based on its weight, meaning sustainable forms of packaging made in the UK such as glass, will be hit hardest. The tax will hit glass bottles of wine and spirits the hardest.
Under the new government policy, a standard bottle of wine will cost an additional 9p, while the cost of a 330ml beer bottle will rise by around 4p. Spirit bottles will cost an extra 11p under the levy. These price increases could be passed onto consumers in supermarkets and come as John Lewis reported this month that EPR could cost the business £29m.
This new tax heaps more pain onto the hospitality sector, following the rise in National Insurance Contributions (NICs). Recent analysis by UK Hospitality shows that half of all job losses in the UK this year came in pubs, restaurants and hotels – a staggering 89,000 job losses.
Glass products are punished despite environmental credentials
The government’s design of EPR means glass will be taxed proportionality more than single-use plastics.
Glass is already endlessly recyclable and is widely recycled in the UK. Glass products are also chemically inert, so they don’t leach harmful chemicals into the food or drink inside. Plastics do not compete with any of these measures yet will be taxed less simply because they weigh less than glass.
Encirc, one of the UK’s largest glass bottle manufacturers, is also pioneering low-carbon production with investment in hydrogen power and biofuels.
In the coming years, glass bottles and jars will also be one of the lowest carbon materials as well. Encirc supports 2,000 direct jobs across the country, with sites in Cheshire, Bristol and Northern Ireland.
Sean Murphy, Managing Director at Encirc, commented: “The new Glass Bottle Tax is an economic and environmental own goal, hitting UK firms producing packaging that is far better for the environment than plastic.
“This tax will hit everyone – in the supermarkets, pubs, and glass factories that create thousands of jobs. It is a bitter blow for businesses such as ours which are investing heavily in green technology.
“The government must hit the pause button on this.
“Encirc is leading the industry in low-carbon manufacturing, from successful biofuel trials in Northern Ireland, to pioneering investment in hydrogen furnaces in Cheshire.
“An arbitrary measurement based on the weight of materials unfairly penalises glass and just doesn’t work.”
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