British Glass has accused the Government of shattering the UK glass sector after a controversial new packaging tax was passed by Parliament.
Under the new packaging extended producer (pEPR) scheme, which shifts the cost of collection and sorting from local authorities to producers, heavier containers like glass will incur higher levies, meaning products in glass bottles and jars could be set have an additional cost in excess of 10p whereas products in plastic or metal containers will only have a marginal cost.
Glass fees for beverage packaging will be around 49 times higher than other, less-recyclable materials, leaving brands with no choice but to move away from using 100% recyclable glass products.
British Glass, who represents the UK glass industry, says the move will lead to job losses in a sector, which employs 120,000 in its supply chain.
The new packaging tax, set to be implemented from April 2025, will also push up the price of many items and could conversely lead to more throwaway plastic, warns trade body, British Glass.
Chief Executive of British Glass, Dave Dalton, said: “The Government has failed to listen to concerns from producers and trade bodies and is ploughing on with this ill-thought-out scheme which is a hammer blow to the glass sector and British manufacturing.
“British Glass supports the principle of pEPR and that packaging waste collection and recycling needs to be reformed to deliver a circular economy for the UK.
“However, this scheme will have a profound impact on competitiveness against other packaging formats – leading to job losses predominantly in the UK’s manufacturing heartlands.
“Prices will increase both for consumers and SMEs who are already operating on wafer-thin margins.
“The effect on the environment is equally depressing. The Government has a plan for a circular and zero-waste economy, yet the pEPR policy will incentivise more plastic – which is less circular than glass. We urge the Government to re-think this policy and meet with businesses and British Glass as a priority.”
British Glass and several large food and drink producers had raised concerns with MPs and Ministers on the pEPR policy’s negative impact.
At the debate yesterday evening Recycling Minister, Mary Creagh, stated: “As we look at the global plastic pollution treaty negotiations in Busan, South Korea, we certainly hope to play our part in that work.”
Unfortunately, pEPR as it stands will work against this, says British Glass Technical Director, Dr Nick Kirk.
“The aim of pEPR is to drive away from difficult-to-recycle packaging materials to recyclable packaging materials, but the current policy will incentivise the move away from glass packaging to less recyclable materials such as plastic packaging. The proposed pEPR fees are calculated on the weight of packaging, however packaging is bought in units not weight, this will distort the packaging market as glass will have a substantial pEPR fee compared to competing packaging materials. Glass is 100% recyclable and is infinitely recyclable as it does not deteriorate on each recycle.”
In terms of price changes, a 330ml glass beer bottle will have a pEPR fee of approximately 5p, with the addition of supply chain margins and VAT, the consumer will see at least a 10p increase in a beer bottle and more on larger soft drink, wine and spirit bottles, whilst metal and plastic beverage packaging will not be affected.
This will lead to inflation for the consumer or probably more likely a switch away from glass packaging.
“We have already experienced the impact of brands moving away from glass, as they are now purchasing their packaging for 2025,” added Nick Kirk.
“In addition, there has been an increase in the imports of empty glass packaging from countries outside of the EU and these countries are producing more carbon per unit of glass packaging.
“These imports can be at least 20% cheaper than UK-produced glass packaging and will be able to absorb the pEPR cost, which will lead to more imports and a negative impact on UK glass production, and ultimately more carbon into the global atmosphere. This shows a fundamental lack of understanding by the Government of the global competition the UK glass sector faces.”