Food prices could rise again thanks to new ‘packaging tax’
Warning new ‘packaging tax’ likely passed on to consumers
- The UK's new Extended Producer Responsibility (EPR) scheme, a 'packaging tax', is expected to place a significant financial burden on retailers and households.
- Industry leaders warn that over 80 per cent of the tax's cost will likely be passed on to consumers, potentially adding 0.5 per cent to food inflation.
- Retailers report a substantial increase in administrative and compliance burdens due to the EPR, following previous rises in employment costs.
- The British Retail Consortium (BRC) is calling for greater clarity on how consumers and the environment will benefit, and for legal ring-fencing of funds for local recycling improvements.
- Glass bottle manufacturers, such as Encirc, criticise the weight-based levy as an “own goal”, predicting price increases for wine and spirits and urging the government to pause the policy.