Government to Cut Packaging Costs for Pubs and Hospitality Businesses

Pubs, restaurants and other licensed hospitality venues are set to see a reduction in packaging-related costs under measures announced by the UK Government aimed at tackling what the sector has described as unfair double charging on glass containers. The changes form part of a wider package intended to support both the hospitality sector and the UK glass industry.

The changes will cut double charging for recycling the same packaging, saving businesses up to 6p per beer bottle and 10p per wine bottle. For a pub selling 10,000 beer bottles and 3,700 wine bottles, this would save them up to £870 a year.

Glass drinks containers being sold directly from producers to pubs, restaurants, and other licensed hospitality venues will no longer be liable for Extended Producer Responsibility fees from April 2027.

The measures are part of the government’s commitment to back the British glass industry.

Businesses will also be consulted on fees they pay for packaging waste, so that easy-to-recycle packaging like glass and paper cost less and hard-to-recycle packaging such as some plastics costs more. This could help reduce fees for the most recyclable packaging by up to 40% per year.

Emma McClarkin, Chief Executive of the British Beer and Pub Association said: “Across the beer and pub sector there will be much relief that the Government will reduce the costs of glass packaging fees and is also seeking to end the pernicious double charging that has been unfairly affecting Britain’s cherished pubs.

“The direction of travel will be warmly welcomed, but it is essential that the long-term cumulative impact of the UK’s packaging policies are taken into consideration if we are to have a prosperous beer and pub sector in every post code. These measures could reduce cost pressures on Britain’s brewers by tens of millions. However, it is vital that the 12,000 publicans that run leased and tenanted pubs as SMEs are also be included, as otherwise over a quarter of Britain’s pubs will not equally benefit from this important change. We look forward to working closely with government in building on these important changes which are clear signal of intent to reduce the costs of doing business for brewers and pubs which sit at the heart of local communities throughout the country.”

Andy Slee, Society of Independent Brewers and Associates (SIBA) Chief Executive said: “Pubs and independent breweries have been facing a fundamental unfairness under the Extended Producer Responsibility (EPR) scheme where they effectively have to pay twice for waste collection. This double counting has cost the pubs sector around £50 million a year. Today’s announcement by the Government to resolve this issue is sensible and a welcome move in the right direction.

“The implementation of EPR has had a significant impact on independent breweries, the glass industry, pubs and consumers by adding extra costs, bureaucracy and additional challenges. Some breweries have been forced to cut staff to cover the extra cost of EPR. We hope that the Government’s consultation on fees will help reduce this impact on a fragile industry.”