Glass beer bottles might disappear as Labour net-zero tax slaps 5p further value on brewers
Beer bottles could be phased out by many brewers due to a forthcoming ‘net zero’ tax.
Newcastle Brown Ale’s extra-large ‘pint’ bottle, Grolsch’s famous porcelain top flask and a slice of lime in the neck of Mexican lager Corona may all become things of the past, say industry bodies.
It is feared the government’s ‘Extended Producer Responsibility’ scheme will slap an additional cost of 5p per bottle on manufacturers, forcing some breweries to switch from glass to cans.
British Beer & Pub Association chief executive Emma McClarkin told pub trade newspaper The Morning Advertiser: ‘The revised estimates for glass are an extremely worrying step in the wrong direction.
‘Government must be clear-eyed that these proposed higher additional costs on brewers would land an extra £160million, or 5p per glass bottle, on the sector.
‘This could force some brewers to leave the glass bottle market.
‘Given the incredibly narrow margins UK brewers operate to, as they make an average of 2p per bottle of beer, this means they will be forced to pass on extra painful costs to the consumer if they want to carry on making their product.’
The new green levy on food and drink packaging, which comes into force in April, is aimed at reducing heavier packaging such as glass.
Newcastle Brown Ale’s extra-large ‘pint’ bottle could become a thing of the past
British Glass chief executive Dave Dalton said the move is putting thousands of jobs at risk
Grolsch’s famous porcelain top flask could also be made extinct by Labour’s net-zero tax
A slice of lime in the neck of Mexican lager Corona may also be at risk of disappearing
According to the Government’s own analysis, the tax could increase Britons’ yearly grocery bills by up to £56 per household.
British Glass chief executive Dave Dalton said: ‘We believe the cost could be even higher once additional supply chain costs and VAT are added.’
Mr Dalton, whose body represents the UK glass industry, added: ‘The bottom line is that the Government’s packaging Extended Producer Responsibility scheme is putting thousands of jobs at risk in a sector that employs 120,000 in its supply chain – potentially shattering the UK glass sector.’
The Department for Environment, Food and Rural Affairs said the scheme would shift the cost of dealing with household packaging waste from taxpayers to the firms that produced it.
A spokesman added: ‘We are committed to cracking down on waste and boosting recycling.
‘These reforms will create 21,000 jobs and lead to more than £10billion investment in recycling over the next decade, while meaning taxpayers don’t foot the bill for managing waste.’
