Pubs are set to be charged twice for disposing of glass bottles under “chaotic” new EPR rules which will cost the sector an extra £60 million – the equivalent of 5,000 jobs.
The Government’s new EPR (Extended Producer Responsibility) regime means glass packaging sold in pubs will be classed as household waste, despite them already being charged and recycled under commercial waste. These rules mean suppliers will therefore have little choice but to pass on these costs to pubs.
New BBPA data estimates that pubs, which pay approximately £1,100 a year each for commercial recycling of their glass bottles, will now be charged an additional £1,400 a year for the same glass bottles under household waste fees.
This amounts to an extra £60million bill the sector will have to bear which is the equivalent of 5,000 jobs.
The BBPA has written to the Government warning them of the devastating impact this fresh new fee will have, and highlighted how it will kick in at the same time Business Rates relief is cut from 75% to 40%, Employer National Insurance rates increase, the threshold at which businesses pay NI decreases, and there are significant increases to the National Minimum and Living Wage.
The BBPA has warned the chaotic rules and distortive fees will mean double-payment for pubs, wipe out wafer-thin brewer margins on bottled beer, could risk jobs and drive-up inflation.
Emma McClarkin, CEO of the British Beer and Pub Association, said: “The new EPR regime bears no link to reality – it is a series of unfair fees and confusing rules that are being chaotically implemented.
“These new costs are an own goal, as they will seriously damage wafer-thin profits that brewers and pubs make and jeopardise jobs and growth. EPR is the exact opposite of what the Chancellor wants to achieve.
“Of course we’re committed to a more circular economy, but we cannot understand how pubs paying twice is going to be more sustainable, when virtually all glass sold in pubs is already collected and recycled.
“Government must urgently review these costs, and ensure they are fair and sensibly implemented, so the sector can continue to play a critical role for the UK’s economy and employment.”
UK brewers make an average of 2p per bottle of beer, which leaves them no choice but to pass on extra painful costs to customers if they want to carry on making their product.
The higher additional costs on brewers will force an extra £154m each year, or 5p per glass bottle on the sector, and could force some brewers to leave the glass bottle market, the BBPA warned.
The BBPA is urging Government to consider the full impact of these fees and wider packaging reforms which will severely diminish growth and risk jobs.