Concerns Over New Green Tax Impact on Alcohol Pricing and Jobs

A proposed green tax intended to encourage the use of environmentally friendly packaging is raising alarms in the beverage industry, as it is likely to lead to increased prices for wine and beer. The head of a trade association for pubs and breweries has voiced concerns that these new financial burdens could jeopardize employment within the sector. Reportedly, this tax could result in a price increase of approximately 9p for a standard bottle of wine and around 4p for a 330ml bottle of beer.

This initiative is part of an extended producer responsibility (EPR) system, which has faced scrutiny from industry specialists. Glass manufacturers are predicted to be the most significantly affected by this new levy, as it is determined by the weight of products and the challenges associated with their collection and disposal. A source within the industry described the policy as poorly conceived and a potential “hammer blow” to glass production. They emphasized that, despite British workers producing sustainable glass, the government seems intent on undermining their efforts.

Moreover, there is public sentiment against plastic substitutes for glass, especially when consumers are already facing a cost-of-living crisis. Critics assert that the move could inadvertently push more plastic usage, making it a detrimental policy overall. They argue that even though glass is more recyclable compared to plastics and cardboard, the weight factor leads to harsher penalties under the new regulations.

The government claims this policy, first introduced by the Conservative party in 2019, could generate over £1 billion annually to enhance recycling schemes. However, Emma McClarklin, the chief executive of the British Beer and Pub Association, cautioned that the additional costs could drastically affect breweries and pubs, possibly forcing some out of the glass bottle market. This situation could hinder job opportunities and deter investment in the industry, which she feels contradicts the Chancellor's objectives.

Miles Beale, head of the Wine and Spirit Trade Association, acknowledged the concept behind the EPR but criticized it for being flawed and excessively costly. He pointed out that there is a significant risk that the EPR will not yield the intended environmental benefits while simultaneously imposing high expenses on businesses, ultimately leading to costs being passed on to consumers. In response, a government spokesperson stated their commitment to addressing waste while moving toward a circular economy and assured that fee discounts would be available for recyclable materials like glass. They promised further details regarding the confirmed base fees soon, which are expected to support improved recycling efforts nationwide.