The UK glass sector has voiced strong opposition to the Government's controversial new packaging tax, warning it could lead to job losses and environmental harm.

British Glass, which represents the UK glass industry, has accused the Government of failing to consider the broader impact of the tax, set to take effect in April 2025.

A tax on glass: “Disproportionate and unfair”

Under the new packaging extended producer responsibility (pEPR) scheme, businesses will bear the cost of packaging waste collection and sorting, with heavier packaging materials like glass facing higher levies.

For glass packaging, this could mean a price increase of over 10p per product, compared to a minimal cost for plastic or metal containers.

According to Dave Dalton, Chief Executive of British Glass, "The Government has failed to listen to concerns from producers and trade bodies and is ploughing on with this ill-thought-out scheme which is a hammer blow to the glass sector and British manufacturing."

Dalton's concerns extend beyond economic implications, highlighting potential environmental drawbacks. "The effect on the environment is equally depressing.

The Government has a plan for a circular and zero-waste economy, yet the pEPR policy will incentivise more plastic – which is less circular than glass," he argued.

Potential consequences for the UK glass sector

The new tax, set to be introduced in 2025, threatens to drive up prices for consumers and could lead to brands shifting away from using glass products. British Glass warns that this could lead to the loss of jobs in the sector, which employs 120,000 people across its supply chain. Dalton added that this shift could "lead to job losses predominantly in the UK’s manufacturing heartlands."

The cost of glass packaging will soar under the pEPR system, with a 330ml glass beer bottle expected to incur a fee of 5p, leading to a price hike of at least 10p for consumers.

Meanwhile, plastic and metal packaging will incur minimal charges, prompting concerns about competitive fairness.

Dr Nick Kirk, Technical Director at British Glass, explained, "The aim of pEPR is to drive away from difficult-to-recycle packaging materials to recyclable packaging materials, but the current policy will incentivise the move away from glass packaging to less recyclable materials such as plastic."

A threat to sustainability and global competitiveness

One of the most alarming consequences of the pEPR tax, according to British Glass, is its potential to increase imports of cheaper glass packaging from outside the EU.

These imports, often produced with a higher carbon footprint, could undermine UK production and negatively affect global sustainability goals.

Kirk pointed out that these foreign imports could be at least 20% cheaper than UK-made glass packaging, absorbing the additional pEPR cost and further eroding the competitiveness of British manufacturers.

The glass industry is urging the Government to reconsider the pEPR policy.

"We urge the Government to re-think this policy and meet with businesses and British Glass as a priority," Dalton concluded, emphasising the need for a more balanced approach to packaging waste that does not favour less sustainable materials over 100% recyclable glass.

As the debate continues, the future of the UK glass industry and its role in the global sustainability movement remains uncertain, with calls for urgent policy revisions to support both British jobs and the environment.