The historic soft drinks maker, Fentimans, expresses concern over a proposed glass tax reform that could put them out of business after 120 years.
- The Department for Environment, Food and Rural Affairs (Defra) has proposed a £300 per tonne tax on glass recycling.
- Industry leaders, including the British Beer and Pub Association, argue this could increase beer duty by 8% to 21%.
- Brewers and soft drink manufacturers warn of significant financial strain on an already heavily taxed industry.
- British Glass calls for a delay, highlighting job loss risks and disparities with other materials like plastic and aluminium.
The historic soft drinks maker, Fentimans, has raised alarms regarding a new glass tax proposal that threatens its existence after a century of operation. The proposal, part of an ‘extended producer responsibility’ initiative by the Department for Environment, Food and Rural Affairs (Defra), would impose an estimated £300 per tonne on glass recycling. Ian Bray, Fentimans’ CEO, voiced his dismay, stating that such a policy, if not reconsidered, could unjustly dismantle a business with deep roots, since 1905.
The brewing and soft drinks sectors have strongly opposed the tax, citing undue financial burdens. The British Beer and Pub Association has echoed these concerns, projecting that the tax could hike costs between 3p and 7p per bottle, equivalent to an additional £84 million to £212 million overall. Chief Executive Emma McClarkin highlighted the brewing sector’s substantial contribution to the economy, supporting jobs and advancing public health goals despite already facing high taxation.
Paul Davies, CEO of Carlsberg Marston’s Brewing Company, underscored the sector’s sustainability efforts, including a commitment to zero packaging waste by 2030. He cautioned that the financial impacts of the proposed tax could exacerbate existing challenges such as high energy costs, urging for meaningful dialogue with the government to align environmental and economic goals.
In response to these developments, British Glass, representing the entire glass industry, has demanded a postponement of the tax implementation. They have highlighted the discrepancies in policy application, noting that materials like plastic and aluminium benefit from a delay until they face similar taxes in 2027. Nick Kirk, British Glass’s Technical Director, pointed to potential job losses, emphasising the need for equitable treatment across all materials.
Defra has defended the tax, framing it as essential to combating waste and promoting a circular economy. A spokesperson stated that these measures are vital for environmental progress, encouraging ongoing discussions to find viable solutions.
The proposed glass tax, aimed at promoting sustainability, faces significant industry opposition due to potential economic impacts.
