Wine and beer prices rise under new glass packaging levy
A new government packaging levy could add 9p to a bottle of wine and 4p to a bottle of beer as part of its wider net-zero strategy.
The UK government is expected to confirm today that wine, beer and spirits will be subject to increased packaging disposal fees under the Extended Producer Responsibility (EPR) scheme, a policy designed to support the shift to net-zero, The Times originally reported today.
The changes will see the price of a standard bottle of wine increase by 9p, while a 330ml bottle of beer will go up by around 4p. Spirits will be hit with a higher 11p per bottle cost.
The levy applies to all forms of packaging including aluminium, plastic, cardboard and wood, but the glass industry is expected to bear the heaviest burden due to the fee being calculated by weight. The cost of the so-called “glass tax” could reach £240 per tonne.
Originally proposed under Theresa May’s government in 2019, EPR aims to encourage businesses to reduce packaging waste, increase recyclability and cut landfill use. The £1 billion a year raised from the scheme will be redirected to local councils to fund recycling infrastructure.
Industry warns of impact on jobs and investment
Some in the industry have questioned the environmental benefit of the changes, arguing that glass is more sustainable than many of the alternatives it could be replaced with.
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“This ill-thought-out policy could be a hammer blow for the glass industry,” an industry source told The Daily Telegraph. “British workers are producing sustainable glass, yet the government seems hell-bent on selling them down the river.”
The source added that consumers do not want wine sold in plastic and warned the policy risks adding to the cost of living burden without delivering meaningful environmental benefits. They described the levy as a “lose-lose policy”.
Emma McClarkin, chief executive of the British Beer and Pub Association, also raised concerns about the impact on producers and the wider hospitality sector.
“The current regime will ultimately mean extra cost for the consumer [and] could force some brewers to leave the glass bottle market, and consequently risk jobs and undermine investment,” she said.
“These new costs are an own goal as they will seriously damage [the] wafer-thin profits that brewers and pubs make and jeopardise jobs and growth. EPR is the exact opposite of what the chancellor wants to achieve.”
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