Glass Industry Condemns UK Government's Packaging Tax, Warns of Devastating Impact
The UK’s glass manufacturing sector is reeling following the Government’s approval of a controversial packaging tax under the extended producer responsibility (pEPR) scheme. The new legislation, set to take effect in April 2025, has drawn heavy criticism from British Glass, the trade body representing the industry. It claims the tax disproportionately targets glass packaging, threatening jobs, economic stability, and sustainability efforts.
The scheme shifts the cost of waste collection and recycling from local authorities to producers, but the structure of the tax places significantly higher levies on heavier materials like glass. For beverage packaging, glass fees will be around 49 times higher than those for plastic or metal. British Glass warns this will discourage brands from using glass, a 100% recyclable material, in favor of less sustainable alternatives.
"A Hammer Blow" to UK Manufacturing
Dave Dalton, Chief Executive of British Glass, described the tax as a disaster for the sector:
“The Government has failed to listen to industry concerns and is pushing ahead with this ill-conceived scheme, which will severely impact the glass sector and British manufacturing.
“While we support the principle of pEPR and recognize the need for packaging waste reform to achieve a circular economy, this scheme unfairly penalizes glass and jeopardizes competitiveness. It will lead to job losses in manufacturing heartlands, push up prices for consumers, and incentivize more use of throwaway plastics, undermining environmental goals.”
The UK’s glass manufacturing industry currently supports 120,000 jobs across its supply chain. British Glass argues that the new tax will make domestic production unviable for many companies, leading to job losses and increased reliance on imports.
Sustainability Irony: Penalizing the Most Recyclable Material
British Glass has highlighted a key contradiction in the policy: while glass is infinitely recyclable without degrading in quality, the tax incentivizes the use of plastic, which is less recyclable and more environmentally damaging over time.
Dr. Nick Kirk, Technical Director at British Glass, criticized the weight-based calculation of the tax:
“The policy punishes heavier materials like glass while ignoring its sustainability benefits. Glass packaging is sold by unit, not weight, so this approach distorts the market and forces brands to move away from a material that’s 100% recyclable.
“The pEPR scheme’s goal is to drive the use of recyclable materials, but its current structure will lead to increased use of less recyclable plastics, directly contradicting the Government’s own environmental objectives.”
Impact on Consumers and Costs
The financial implications for consumers are significant. A standard 330ml glass beer bottle, for instance, will incur a packaging tax of around 5p. Once supply chain costs and VAT are added, the price could rise by at least 10p per bottle, with even higher increases for larger bottles.
Plastic and metal packaging, in contrast, will see minimal cost increases, creating a pricing disparity that British Glass fears will further erode the use of glass packaging.
“The tax will drive inflation for consumers and force brands to seek cheaper alternatives to glass. This is bad for the environment and bad for UK manufacturing,” Dalton warned.
Threat to Domestic Production and Global Competitiveness
British Glass has also raised concerns about the economic consequences of the tax. Imported glass packaging from non-EU countries, which is typically at least 20% cheaper than UK-produced glass, is likely to dominate the market. These imports, produced with higher carbon emissions, will absorb the pEPR costs more easily, further undermining the UK glass industry.
“This demonstrates a fundamental misunderstanding by the Government of the global competition we face,” Kirk added.
Call for Rethink
British Glass and several major food and drink producers had previously lobbied MPs and Ministers to reconsider the tax’s structure. However, their concerns were largely ignored during parliamentary debates.
Dalton has called on the Government to urgently revisit the policy and engage with industry stakeholders:
“We need a system that balances sustainability goals with economic realities. Without immediate action, this policy risks devastating our industry, driving up costs for consumers, and derailing the UK’s circular economy ambitions.”
Looking Ahead
As the pEPR scheme’s implementation date looms, the UK glass industry faces a stark choice: adapt to an increasingly unviable market or risk being sidelined by unsustainable imports. For now, the battle between British Glass and the Government continues, with the future of one of the UK’s most sustainable materials hanging in the balance.
