The Sheffield-based British Glass trade association says the Government’s controversial new packaging tax will add a financial burden that will drive producers away from recyclable glass and could result in job losses in the industry.
Under the new rules, glass fees for beverage packaging will be almost 50 times higher than other, less recyclable materials, leaving brands with no choice but to move away from using 100% recyclable glass products, says British Glass.
The new packaging tax, set to be implemented next April, will also push up the price of many items and could actually lead to more throwaway plastic, according to British Glass Chief Exec Dave Dalton. He 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 businesses and British Glass as a priority.”
The new packaging extended producer scheme shifts the cost of collection and sorting waste from local authorities to producers, with heavier containers like glass incurring higher levies. In turn that means the price of products in glass bottles and jars could increase by at least 10p, whereas products in plastic or metal containers will only have a marginal cost.
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. Along with several large food and drink producers it raised concerns with MPs and Ministers on the pEPR policy’s negative impact.
Recycling Minister Mary Creagh said: “As we look at the global plastic pollution treaty negotiations in Busan, South Korea, we certainly hope to play our part in that work.”
As it stands, pEPR 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 about 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 a switch away from glass packaging, says Dr Kirk. “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.”
