{"id":55309,"date":"2025-10-02T00:57:24","date_gmt":"2025-10-02T00:57:24","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/55309\/"},"modified":"2025-10-02T00:57:24","modified_gmt":"2025-10-02T00:57:24","slug":"food-prices-could-rise-again-thanks-to-new-packaging-tax","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/55309\/","title":{"rendered":"Food prices could rise again thanks to new \u2018packaging tax\u2019"},"content":{"rendered":"<p>Your support helps us to tell the story<\/p>\n<p class=\"sc-1uza6dc-0 jEZjIj\">From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it&#8217;s investigating the financials of Elon Musk&#8217;s pro-Trump PAC or producing our latest documentary, &#8216;The A Word&#8217;, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.<\/p>\n<p class=\"sc-1uza6dc-0 jEZjIj\">At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.<\/p>\n<p class=\"sc-1uza6dc-0 jEZjIj\">The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.<\/p>\n<p>Your support makes all the difference.Read more<\/p>\n<p>The vast majority of the new \u2018<a href=\"https:\/\/www.independent.co.uk\/topic\/packaging\" rel=\"nofollow noopener\" target=\"_blank\">packaging<\/a> <a href=\"https:\/\/www.independent.co.uk\/topic\/tax\" rel=\"nofollow noopener\" target=\"_blank\">tax<\/a>\u2019 is likely to be passed on <a href=\"https:\/\/www.independent.co.uk\/topic\/consumers\" rel=\"nofollow noopener\" target=\"_blank\">consumers<\/a>, industry leaders have warned.<\/p>\n<p>The new tax \u2013 or the extended producer responsibility (EPR) scheme, for which firms must submit their latest data on the packaging they have used by October 1 \u2013 is likely to place a \u201csignificant financial burden\u201d on UK retailers and <a href=\"https:\/\/www.independent.co.uk\/topic\/households\" rel=\"nofollow noopener\" target=\"_blank\">households<\/a>, a survey of leading retailers for the British Retail Consortium (<a href=\"https:\/\/www.independent.co.uk\/topic\/brc\" rel=\"nofollow noopener\" target=\"_blank\">BRC<\/a>) suggests.<\/p>\n<p>More than 80 per cent of the cost of the new tax is likely to be passed on consumers, it has been predicted.<\/p>\n<p>The BRC said the industry had been left little room to absorb any extra costs following last year\u2019s budget, when retailers were hit with \u00a35 billion in extra employment costs due to higher employer national insurance contributions and the rising national living wage.<\/p>\n<p>It said the EPR, set to cost industry billions, would be \u201cyet another inflationary pressure\u201d when <a href=\"https:\/\/www.independent.co.uk\/topic\/food-prices\" rel=\"nofollow noopener\" target=\"_blank\">food prices<\/a> were already rising fast, with the Bank of England estimating that the policy alone will add 0.5 per cent to food inflation.<\/p>\n<p>In addition to the financial impact, some 85 per cent of retailers said the administrative and compliance burden they faced had increased significantly as a result of EPR.<\/p>\n<p>Firms are required to report extensive information on the composition and amounts of packaging they are putting on the market.<\/p>\n<p>The tax is levied on any company which produces packaging bought and disposed of by households, and includes retailers and brands.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/10\/meat.jpeg\"  loading=\"lazy\" alt=\"The Bank of England estimates that the policy alone will add 0.5 per cent to food inflation\" class=\"sc-1mc30lb-0 ggpMaE inline-gallery-btn\"\/><\/p>\n<p>open image in gallery<\/p>\n<p>The Bank of England estimates that the policy alone will add 0.5 per cent to food inflation (AFP\/Getty)<\/p>\n<p>The fees are based on the materials and amounts used.<\/p>\n<p>The survey found that 85 per cent of retailers intend to increase the proportion of sustainable packaging placed on the market, and 78 per cent intend to reduce the total volume of packaging they place on the market.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/static.independent.co.uk\/static-assets\/images\/mobile-stores\/Trading_212.svg\" width=\"153\" height=\"40\" alt=\"Trading 212 logo\"\/><\/p>\n<p class=\"sc-118zqaw-6 Ewzp\">Get a free fractional share worth up to \u00a3100.<br \/>Capital at risk.<\/p>\n<p class=\"sc-118zqaw-7 kxJQLw\">Terms and conditions apply.<\/p>\n<p><a class=\"sc-1aus1tj-0 XrIrk sc-118zqaw-2\" href=\"https:\/\/www.trading212.com\/join\/TI?af_xp=custom&amp;source_caller=ui&amp;pid=partners&amp;utm_source=network_the_independent&amp;shortlink=l9wss7fd&amp;utm_medium=text_advertising&amp;af_adset=text_advertising&amp;af_ad=text_advertising&amp;utm_campaign=text_advertising&amp;af_channel=network_the_independent&amp;c=the_independent\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Go to website<\/a><\/p>\n<p class=\"sc-118zqaw-8 coIuAW\">ADVERTISEMENT<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/static.independent.co.uk\/static-assets\/images\/mobile-stores\/Trading_212.svg\" width=\"153\" height=\"40\" alt=\"Trading 212 logo\"\/><\/p>\n<p class=\"sc-118zqaw-6 Ewzp\">Get a free fractional share worth up to \u00a3100.<br \/>Capital at risk.<\/p>\n<p class=\"sc-118zqaw-7 kxJQLw\">Terms and conditions apply.<\/p>\n<p><a class=\"sc-1aus1tj-0 XrIrk sc-118zqaw-2\" href=\"https:\/\/www.trading212.com\/join\/TI?af_xp=custom&amp;source_caller=ui&amp;pid=partners&amp;utm_source=network_the_independent&amp;shortlink=l9wss7fd&amp;utm_medium=text_advertising&amp;af_adset=text_advertising&amp;af_ad=text_advertising&amp;utm_campaign=text_advertising&amp;af_channel=network_the_independent&amp;c=the_independent\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">Go to website<\/a><\/p>\n<p class=\"sc-118zqaw-8 coIuAW\">ADVERTISEMENT<\/p>\n<p>However, the BRC urged the government to provide greater clarity on how consumers and the environment will benefit considering prices will increase.<\/p>\n<p>It is also calling on the government to put in place legal ring-fencing to ensure the money raised from EPR can only be used by local councils to collect and operate local recycling, as well as fund improvements to local recycling systems.<\/p>\n<p>Andrew Opie, director of food and sustainability at the BRC, said: \u201cRetailers support the polluter pays principle and are making significant changes to reduce and improve their packaging.<\/p>\n<p>\u201cBut the packaging tax is also a multi-billion pound levy being paid by consumers during a cost-of-living crisis. They will ask: what are we getting for higher prices?<\/p>\n<p>\u201cUnless funds are spent transparently and effectively, EPR threatens to just be another burden on an already overtaxed industry with no tangible benefits for customers or the environment.\u201d<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/10\/872f2bf41f2b82a1130f13b07758a08fY29udGVudHNlYXJjaGFwaSwxNzU4MDkzOTgx-2.81063263.jpg\"  loading=\"lazy\" alt=\"In addition to the financial impact, some 85 per cent of retailers said the administrative and compliance burden they faced had increased significantly as a result of the new tax\" class=\"sc-1mc30lb-0 ggpMaE inline-gallery-btn\"\/><\/p>\n<p>open image in gallery<\/p>\n<p>In addition to the financial impact, some 85 per cent of retailers said the administrative and compliance burden they faced had increased significantly as a result of the new tax (PA Wire)<\/p>\n<p>Encirc, one of the UK\u2019s largest glass bottle manufacturers, which is also pioneering low-carbon production with investment in hydrogen power and biofuels, described the tax as an \u201cown goal\u201d that would hit glass bottles of wine and spirits the hardest due to its basis in weight.<\/p>\n<p>Under the policy, a standard bottle of wine will cost an additional 9p, while the cost of a 330ml beer bottle will rise by about 4p and spirit bottles will cost an extra 11p under the levy.<\/p>\n<p>Encirc, too, warned that these price increases could be passed onto consumers.<\/p>\n<p>Sean Murphy, managing director at Encirc, said: \u201cThe new glass bottle tax is an economic and environmental own goal, hitting UK firms producing packaging that is far better for the environment than plastic.<\/p>\n<p>\u201cThis tax will hit everyone \u2013 in the supermarkets, pubs, and glass factories that create thousands of jobs. It is a bitter blow for businesses such as ours which are investing heavily in green technology.<\/p>\n<p>\u201cThe government must hit the pause button on this.\u201d<\/p>\n<p>Local government Association (LGA) environment spokeswoman Arooj Shah said: \u201cCouncils have worked hard to provide recycling services that residents are satisfied with, and it is long overdue that producers of packaging pay for the disposal of the waste the create. Industry has a choice about whether to reduce packaging, absorb the cost or pass it on to consumers.<\/p>\n<p>\u201cCouncils support the polluter-pays principle. EPR should be the spur for industry to cut unnecessary packaging, design packaging for reuse and recycling, and phase out hard-to-recycle materials so costs for consumers come down.<\/p>\n<p>\u201cWe reject the call to ring-fencing that says funds can only go on collections. That is, in practice, a call for industry control of council waste services. Every place is different, and democratically elected councils must be free to invest where it helps residents most.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The&hellip;\n","protected":false},"author":2,"featured_media":55310,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-55309","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/55309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=55309"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/55309\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/55310"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=55309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=55309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=55309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}