Wine prices up 9p a bottle thanks to net-zero ‘glass tax’

A net-zero “glass tax” will hike the prices of bottles of wine and beer, the government is expected to announce.

The tax, known as extended producer responsibility (EPR), will mean retailers and manufacturers have to pay fees for the disposal of packaging they use.

The scheme’s final costings will be announced today and is intended to encourage manufacturers to use environmentally friendly materials.

Under the new policy, a standard bottle of wine will cost an additional 9p, while the cost of a 330ml beer bottle will rise by around 4p. Spirits will cost an extra 11p under the levy.

Some manufacturers have dismissed the supposed benefits of the scheme and insisted glass was more sustainable than alternatives such as cardboard and plastic.

“This ill-thought-out policy could be a hammer blow for the glass industry,” an industry source told the Daily Telegraph. “British workers are producing sustainable glass, yet the government seems hell-bent on selling them down the river.”

The source said that the public did not want their wine served in plastic, nor did they want a price increase on their drinks amid the cost of living crisis. They described the levy as a “lose-lose policy”.

The tax will also apply to aluminium, plastic, cardboard and wood. Each levy is calculated by weight, meaning the glass industry is expected to be hit the hardest. The glass tax could cost as much as £240 a tonne.

Officials hope the EPR will incentivise businesses to reduce unnecessary packaging and use more recycled and recyclable materials, while also decreasing the amount of landfill used in manufacturing. About £1 billion a year could be raised by the policy, which was announced by Theresa May’s government in 2019. The funds raised will be redirected to councils.

Emma McClarkin, chief executive of the British Beer and Pub Association, said: “The current regime will ultimately mean extra cost for the consumer [and] could force some brewers to leave the glass bottle market, and consequently risk jobs and undermine investment.

“These new costs are an own goal as they will seriously damage [the] 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.”

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