BRITAIN is at the bottom of the World Cup league table for “bevy levy” packaging fees – with the industry demanding a review of the costs be brought forward.
Trade unions and industy chiefs are today warning that the glass packaging fees are leaving them at a serious disadvantage with their European rivals.
Pubs’ chief Emma McClarkin says British brewers are being penalised more than European competitorsCredit: Not known clear with picture desk
Mary Creagh says there will be a call for evidence later this year Credit: Labour Party
The beer industry faces a staggering £124 million bill which is the equivalent of 6p on a 500ml booze bottle.
The GMB union warns that without action from incoming PM Andy Burnham factories could close with investment cut and thousands of jobs put at risk blunting the drive for regional growth.
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Figures show Britain pays an eye-watering £192 per tonne which is six times more than England’s quarter-final opponents Norway who pay £34.
Research shows that potential finalists Spain pay just £24 per tonne and France is almost 15 times lower at just £13 per tonne.
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Beer industry faces a £124 million packaging tax bill Credit: Getty
The industry even says that the scheme offers a peverse incentive to move from recyclable glass to lighter and less sustainable material with lower charges.
Environment Minister Mary Creagh has vowed to review the impact of the Extended Producer Responsibility but demands are being made to bring it forward.
She said last month there will be a call for evidence this year “to gather industry views”. But she said the proportion the the glass industry pays will fall year on year.
She told MPs that a post-implementation review will be conducted as usual three years after implementation, which is December 2028.
It comes after Liberal Democrat MP Will Forster said that the levy was “senseless” and a contributor factor in the closure of Thurston’s brewery in his Surrey constituency.
But Emma McClarkin, Chief Executive of the British Beer and Pub Association, said: “British brewers already use one of the most sustainable packaging materials available, yet they are being penalised more heavily than competitors elsewhere in Europe.
“The current system is eroding investment, reducing competitiveness and increasing costs across the supply chain.
“Bringing forward the Government’s review and ultimately a fairer glass fee is essential if we are to keep brewing and manufacturing competitive in the UK.”
Andy Belfield, Regional Secretary at GMB Union, said: “British manufacturers are being asked to compete in the global economy with one hand tied behind their back.
“While our European competitors pay a fraction of the UK’s packaging fees, our factories are being saddled with the highest costs on the continent.
“The Government has promised a review, but British workers cannot afford to wait until the autumn. Ministers need to act now before more investment leaves the UK and more manufacturing jobs are put at risk.”
Nick Kirk, Director of British Glass, said: “The figures speak for themselves. British producers are paying many times more than businesses in France, Spain and Norway to use a packaging material that can be recycled endlessly.
“No other major European economy places this level of cost on its glass industry.
“If ministers are serious about supporting manufacturing, economic growth and the circular economy, they must review these fees without delay.”
The government has been contacted for comment.
