𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Consumers will be forced to pay more at supermarkets because of a multi-billion pound recycling tax, a retail boss has warned.

Over 80% of costs of a new packaging tax will likely be passed onto already hard-pressed shoppers, the British Retail Consortium (BRC) said.

Retailers will begin paying the tax, known as the extended producer responsibility (EPR) scheme, from October.

The BRC said that the industry has been left with little room to absorb additional costs following last year’s Budget where retailers were hit with £5 billion in extra costs because of higher employer National Insurance and rising National Living Wages.

Andrew Opie, director of food and sustainability at the BRC, said: “Retailers support the polluter pays principle and are making significant changes to reduce and improve their packaging.

“But the packaging tax is also a multi-billion pound levy being paid by consumers during a cost-of-living crisis.

They will ask: what are we getting for higher prices? Unless funds are spent transparently and effectively, EPR threatens to just be another burden on an already overtaxed industry with no tangible benefits for customers or the environment.”

Any company which produces packaging bought and disposed of by households will have to pay the levy, this includes retailers and brands.

The fees are based on the materials and amounts used.  

The BRC has called on the Government to put in place legal restrictions to ensure the money raised from EPR can only be used by local councils to collect and operate local recycling, as well as fund improvements to local recycling systems.

They said that ministers must provide greater clarity on how consumers and the environment will benefit, with prices set to increase as a result of the new tax.

Sean Murphy, managing director at glass manufacturer Encirc, said: “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.”

An environment department spokesman said: “EPR benefits every household in the country by moving the cost of dealing with waste away from taxpayers and generating over a £1 billion annually that must be spent by councils on improving recycling collections.