Latest news with #glassIndustry
Times
26-06-2025
- Business
- Times
Wine prices up 9p a bottle thanks to net-zero ‘glass tax'
A net-zero 'glass tax' will hike the prices of bottles of wine and beer, the government is expected to announce. The tax, known as extended producer responsibility (EPR), will mean retailers and manufacturers have to pay fees for the disposal of packaging they use. The scheme's final costings will be announced today and is intended to encourage manufacturers to use environmentally friendly materials. Under the new policy, a standard bottle of wine will cost an additional 9p, while the cost of a 330ml beer bottle will rise by around 4p. Spirits will cost an extra 11p under the levy. Some manufacturers have dismissed the supposed benefits of the scheme and insisted glass was more sustainable than alternatives such as cardboard and plastic. 'This ill-thought-out policy could be a hammer blow for the glass industry,' an industry source told the Daily Telegraph. 'British workers are producing sustainable glass, yet the government seems hell-bent on selling them down the river.' The source said that the public did not want their wine served in plastic, nor did they want a price increase on their drinks amid the cost of living crisis. They described the levy as a 'lose-lose policy'. The tax will also apply to aluminium, plastic, cardboard and wood. Each levy is calculated by weight, meaning the glass industry is expected to be hit the hardest. The glass tax could cost as much as £240 a tonne. Officials hope the EPR will incentivise businesses to reduce unnecessary packaging and use more recycled and recyclable materials, while also decreasing the amount of landfill used in manufacturing. About £1 billion a year could be raised by the policy, which was announced by Theresa May's government in 2019. The funds raised will be redirected to councils. Emma McClarkin, chief executive of the British Beer and Pub Association, said: 'The current regime will ultimately mean extra cost for the consumer [and] could force some brewers to leave the glass bottle market, and consequently risk jobs and undermine investment. 'These new costs are an own goal as they will seriously damage [the] wafer-thin profits that brewers and pubs make and jeopardise jobs and growth. EPR is the exact opposite of what the chancellor wants to achieve.'
Telegraph
26-06-2025
- Business
- Telegraph
Net zero tax to push up price of wine
A net zero 'glass tax' will make bottles of wine and beer more expensive. The Government is expected on Friday to announce the final costs of a scheme that will force producers of packaging to pay for its disposal. Under the new policy, a standard bottle of wine will cost 9p more and the cost of a 330ml beer bottle will rise by around 4p. The levy will add 11p to the cost of a bottle of spirits. The levy is part of the extended producer responsibility (EPR) scheme, which is intended to encourage manufacturers to use environmentally friendly materials. However, manufacturers have insisted that glass is more sustainable than alternatives such as cardboard or plastic. 'A lose-lose policy' One industry source told The Telegraph: 'This ill-thought-out policy could be a hammer blow for the glass industry. British workers are producing sustainable glass, yet the Government seems hell-bent on selling them down the river. 'The public does not want their wine served in plastic, or a price hike on glass bottles in a cost of living crisis. If this leads to more plastic being used, then it's a lose-lose policy.' The green levies also apply to aluminium, plastic, cardboard and wood but because they are calculated by weight and the difficulty and expense of collection and disposal, the glass industry is to be hit the hardest. EPR is designed to incentivise businesses to reduce unnecessary packaging and use more recycled and recyclable materials, which officials hope will lead to less landfill waste and carbon dioxide emissions. The Government hopes to raise £1 billion a year from the policy, which was announced by Baroness May's government in 2019, with the funds set to be redirected to councils. Plans published in December indicated that glass would be hit the hardest, with a charge of as much as £240 a tonne, equating to 11p per wine bottle and 5p per beer bottle. However, The Telegraph understands the final figure has been lowered after an industry backlash warning of more expensive products and the extinction of the beer bottle. Critics said glass was being penalised excessively because it was heavier than plastic or cardboard, for example, despite being more recyclable and eco-friendly. Previous analysis has predicted the levy will add £56 to average annual household shopping bills. Emma McClarkin, the chief executive of the British Beer and Pub Association, added: 'The current regime will ultimately mean extra cost for the consumer, could force some brewers to leave the glass bottle market, and consequently risk jobs and undermine investment. 'These new costs are an own goal, as they will seriously damage wafer-thin profits that brewers and pubs make and jeopardise jobs and growth. EPR is the exact opposite of what the Chancellor wants to achieve.' Miles Beale, the chief executive of the Wine and Spirit Trade Association, said: 'While we accept the 'polluter pays' principle, EPR's current design is flawed and its costs far too high. 'There is a very high risk that EPR both fails to improve environmental outcomes and proves outlandishly expensive for businesses – costs that will have to be passed on to UK consumers.' The initiative went live on April 1, with companies now tracking how much packaging they produce. The associated costs of the first six months of EPR, calculated based on the confirmed fees, will be paid to local authorities between October and December of this year. Other countries run similar schemes to EPR but charge much less. Germany charges £24 a tonne for glass, for example, almost eight times less than the UK. The levy is the latest blow to the alcohol industry, which is also battling a tax rise which makes some drinks more expensive based on their strength. The Government is examining the introduction of restrictions which could include a ban on promoting drinks before the 9pm television watershed. However, on Thursday Labour was forced to rule out a total ban on alcohol advertising. A government spokesman said: 'We are cracking down on waste as we move towards a circular economy, with extended producer responsibility (EPR) for packaging being a vital first step. 'Throughout development of the EPR scheme we have engaged extensively with the glass sector and for recyclable materials like glass, we are clear there will be fee discounts. 'We will shortly be setting out the confirmed base fees, which will generate more than £1 billion annually to improve recycling collections, benefitting every household across the country.'
