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Brewers across the country will now face additional fees of £124m a year as new Extended Producer Responsibility (EPR) regulations on glass come into force and the bills hit the doormats.
The British Beer and Pub Association predicts that these costs will be passed on to consumers, adding approximately 4p to a 330ml bottle of beer and 6p to a 500ml bottle of beer – the equivalent to a 12% rise in beer duty.
Brewers across the country will now face additional fees of £124m a year as new Extended Producer Responsibility (EPR) regulations on glass come into force and the bills hit the doormats.
The British Beer and Pub Association predicts that these costs will be passed on to consumers, adding approximately 4p to a 330ml bottle of beer and 6p to a 500ml bottle of beer – the equivalent to a 12% rise in beer duty.
Under the scheme, producers are now responsible for covering the full net cost of recycling the glass packaging they place on the market. However, these eye-watering new costs are expected to be passed down the supply chain, meaning pubs and customers will ultimately foot the bill.
Pubs are expected to be charged twice for the same one glass bottle, to the tune of £50m in EPR fees for the cost of recycling packaging, which many already pay through private waste contractors.
The BBPA warns that the double counting of packaging waste for products sold through pubs is a critical issue, potentially costing the sector an additional £50 million annually and putting 4,200 jobs at risk.
The trade body is urging the government to urgently review the EPR scheme and address the double counting of packaging waste to prevent unfair financial burdens on pubs and brewers.
Emma McClarkin, CEO of the British Beer and Pub Association, said:
“Brewers and pubs are committed to reducing environmental impact, but these reforms must be fair and workable. We urge the government to continue to review the EPR scheme and ensure it does not unfairly burden the hospitality sector."
“These new recycling costs will hit pubs and brewers hard at a time when they are already facing significant financial pressures.
“With just six weeks to go until the budget, our sector faces the equivalent of a 12% increase to beer duty through these new measures, alongside unfair business rates and eye-watering national insurance costs. Unless the government acts swiftly, thousands of jobs and small businesses across the country could be at risk.
“Brewers and pubs are committed to reducing environmental impact, but these reforms must be fair and workable. We urge the government to continue to review the EPR scheme and ensure it does not unfairly burden the hospitality sector."
The Government's own impact assessment anticipates 85% of these costs will be passed onto consumers while the Bank of England also expect EPR to contribute around 0.5% to food and drink inflation.