Proposed new tax on packaging could break the British glass industry - Dave Dalton

According to the Government’s own analysis published recently, implementing the tax could increase yearly expenditure by up to £56 per household. But, at British Glass – the membership body for the UK glass industry – we believe the cost could be even higher once additional supply chain costs and VAT are added.

The bottom line is that the Government’s Packaging Extended Producer Responsibility (pEPR) scheme is putting thousands of jobs at risk – in a sector which employs 120,000 in its supply chain – potentially shattering the UK glass sector.

Many of these jobs are in Yorkshire and the North West. The pEPR scheme directly affects jobs in our region and that’s of great concern to us at British Glass.

The Government has failed to listen to concerns from producers and trade bodies and is ploughing on with this ill-thought-out scheme.

2024 could indeed have been the ‘Last Christmas’ for UK-made glass, as British favourites like mulled wine, pickled onions and cranberry sauce, that are traditionally packaged in glass, will see significant price hikes.

Also, many foods and drinks, often packaged in glass jars and bottles, come in glass for a reason, as plastic can distort flavour, meaning extra preservatives and more plastic pollution.

Whilst the principle of pEPR is sound – highlighting the need for waste collection and recycling reform – this scheme is a hammer blow for the industry, manufacturers and consumers.

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.

According to Government research, glass has a recycling rate 20 per cent higher than plastic, so if manufacturers are forced to pivot to plastic packaging over glass, this recycling issue will need to be addressed, on top of the financial one hitting the industry.

The pEPR scheme risks the loss of our food and manufacturing heritage and a regressive move back to more plastic packaging, threatening the net-zero goals of the industry and the country.

This move away from glass has already begun too. We’ve heard from a number of brands within the industry who have started to purchase their packaging for 2025, and they are moving away from glass. Others have suggested the additional costs will have to be passed on to customers.

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 per cent 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 from the Government of the global competition the UK glass sector faces.

Dave Dalton is the chief executive of British Glass.