Pubs across the country could end up paying £250m in packaging fees under Labour due to the chaotic roll-out of recycling levy, the British Beer and Pub Association has warned.
Despite already paying for their own recycling through private waste contractors, pubs are charged a second time to dispose of the same glass bottles because they are classed as household waste – even though they are patently not, the trade association said.
It estimates this will cost approximately £50m per year, the equivalent of 4,400 pub jobs.
The leading trade association has warned EPR fees wipe out profitability on glass bottles, forcing brewers to pass further costs down the supply chain, meaning pubs and customers will ultimately foot the bill.
The Government’s own estimate is that 85% of EPR costs would be passed on to consumers.
Now in its second year, pubs have already been unfairly charged around £100m. The BBPA said if Government fails to act, the issue could end up costing pubs around £250m by the end of the current parliamentary term in 2029.
Highlights
- Extended Producer Responsibility is effectively charging pubs twice to dispose of the same glass bottles
- Annual EPR costs to pubs are equivalent to around half of the Government’s recent package of support on business rates
- Burnham urged to further back pubs by fixing “ludicrous” double charging under EPR scheme
The BBPA says Government must exempt pubs from being effectively charged twice, as well as reviewing the high fees for glass overall.
“Brewers and pubs are, of course, committed to reducing their environmental footprint and building a circular economy.
“However, any scheme must be fair and workable, yet Government has failed to find a solution for EPR’s ludicrous double charging of pubs.
“If ministers fail to fix this flaw soon, this hugely unfair cost could end up adding up to £250m over the course of Labour’s term, reducing the benefits from next year’s very welcome business rates reduction.”
“The Prime Minister clearly wants to stand up for pubs, and we urge him to build on his good work by fixing this absurd problem.”
Emma McClarkin OBE, CEO of the British Beer and Pub Association
