Fentimans, a historic soft drink maker, faces existential threats due to proposed glass tax reforms.
- The Department for Environment, Food and Rural Affairs proposes an additional £300 per tonne for glass recycling.
- Industry leaders argue that this tax will disproportionally affect small businesses like Fentimans.
- Trade bodies have rallied against these reforms, highlighting the impact on the brewing and soft drink sectors.
- Defra defends the initiative as essential for a circular economy but remains in discussions.
Fentimans, a renowned name in the soft drinks industry, has voiced significant concerns regarding proposed reforms to glass recycling costs. The Department for Environment, Food and Rural Affairs (Defra) plans to introduce a charge of £300 per tonne for recycling glass under an initiative meant to extend producer responsibility. Ian Bray, CEO of Fentimans, stressed the gravity of these changes, stating that such measures could spell the end of the company’s 120-year legacy without careful reconsideration.
These proposed reforms have sparked considerable uproar among both brewers and soft drink producers. They contend that the additional costs place an inequitable burden on businesses, particularly smaller ones. Industry bodies like the British Beer and Pub Association have urged Environment Secretary Steve Reed to reassess the impact. The association has projected that the recycling tax could add between 3p and 7p per bottle to the 3.2 billion bottles of beer sold annually in the UK, translating to an industry-wide cost increase ranging from £84 million to £212 million.
Emma McClarkin, Chief Executive of the British Beer and Pub Association, has underscored the brewing sector’s worries over increasing costs. She pointed out that while the sector contributes significantly to employment and aligns with public health objectives through low-strength options, it remains heavily taxed. The association seeks reassurances that the tax reform will not stifle these vital contributions.
Echoing these sentiments, Paul Davies, CEO of Carlsberg Marston’s Brewing Company, called for constructive dialogue between industry and government. He emphasized that while the brewing industry shares the ambition of sustainability, the new financial burdens might exacerbate existing challenges posed by high energy and raw material costs.
British Glass, the representative body for the glass industry, has also expressed concerns, seeking a delay in the tax implementation. The organization warns of potential job losses and highlights the disparity in how different materials are treated under the proposed reforms. While glass faces imminent charges, alternatives like plastic and aluminium enjoy a two-year grace period before similar policies apply.
Despite industry backlash, Defra has remained firm in its stance, advocating for the necessity of these measures in progressing towards a sustainable, circular economy. Yet, they continue to engage with glass industry stakeholders to explore feasible approaches for the tax’s execution.
The ongoing discussions underline the complex balance between sustainability goals and economic impacts in regulatory policies.
