The proposed glass tax by Defra could severely impact the beverage industry by adding significant costs to glass recycling.
- Fentimans, a historic soft drink producer, fears potential closure due to the imminent glass tax reform.
- Brewers and soft drink manufacturers express outrage, warning of undue financial burdens.
- Trade organizations are urging Environment Secretary Steve Reed to reconsider the tax.
- The proposed tax would exacerbate existing challenges caused by high energy and material costs.
The introduction of a new glass tax, part of an extended producer responsibility initiative by the Department for Environment, Food and Rural Affairs (Defra), threatens to impose a hefty cost on small and historic businesses. Fentimans, a renowned soft drink producer with over 120 years in the industry, has voiced alarm over this tax, which is expected to add approximately £300 per tonne to the cost of glass recycling. Ian Bray, CEO of Fentimans, expressed his concern about the tax’s implications on small businesses by stating, “Fentimans has been selling quality soft drinks since 1905. It would be tragic if this inequitable policy destroyed our business after 120 years just because it hasn’t been thought through.”
The proposed glass tax has sparked a strong reaction from the beverage industry. Brewers and soft drink manufacturers argue that the additional costs introduced by the tax will unjustly burden their businesses. The British Beer and Pub Association has called upon Environment Secretary Steve Reed to reconsider the policy, highlighting that it could lead to a cost increase of 3p to 7p per bottle for the 3.2 billion beer bottles sold annually in the UK. This translates to an additional financial burden ranging from £84 million to £212 million, equating to a beer duty rise of between 8% and 21%.
Emma McClarkin, Chief Executive of the British Beer and Pub Association, has emphasized the critical economic impact, highlighting the already substantial taxation faced by the brewing industry. McClarkin remarked, “These estimated fees provide long-overdue clarity, but they sharply reinforce our concerns about the eye-watering additional costs brewers will be expected to bear from next year and the impact on customers.” She underlined the significant investment the industry has made in low-strength and alcohol-free options, aligning with public health goals, and noted the sector’s role in supporting hundreds of thousands of jobs.
Paul Davies, CEO of Carlsberg Marston’s Brewing Company, also voiced concerns regarding the sustainability ambitions which the sector has set, including achieving zero packaging waste with 100% recyclable, reusable, or renewable packaging by 2030. Despite these aspirations, Davies highlighted the potential financial stress the new costs could impose on the industry, especially given the concurrent challenges of escalating energy and material prices. “We would urge the government to hold constructive discussions with industry about how EPR could be implemented in a way that delivers our shared ambitions for sustainability, whilst also supporting and preserving our treasured national beer and pub culture.”
British Glass, representing the glass manufacturing sector, is actively lobbying for a delay in the tax’s implementation. The organization warns that immediate enforcement could lead to significant job losses. There is contention among sectors as other materials, like plastic and aluminum, have been granted an additional two years before they must adhere to similar waste policy costs. Nick Kirk, Technical Director at British Glass, remarked on the disparity, pointing out that these materials are exempt from extended producer responsibility fees until 2027, offering them a grace period unknown to the glass industry.
The proposed glass tax presents severe implications for the UK beverage industry, posing economic burdens and threatening jobs without careful reevaluation.
