The cost of a pint is going up in the UK as new taxes hit
Brewers across the country will now face additional fees of £124 million a year as new Extended Producer Responsibility (EPR) regulations on glass have officially come into force.
The British Beer and Pub Association predicts that these costs will be passed on to consumers, adding approximately 4p to a 330ml bottle of beer and 6p to a 500ml bottle of beer – the equivalent to a 12% rise in beer duty.
Under the scheme, producers are now responsible for covering the full net cost of recycling the glass packaging they place on the market. However, these eye-watering new costs are expected to be passed down the supply chain, meaning pubs and customers will ultimately foot the bill, the Association said.
Pubs are expected to be charged twice for the same one glass bottle, to the tune of £50 million in EPR fees for the cost of recycling packaging, which many already pay through private waste contractors.
The BBPA warns that the double counting of packaging waste for products sold through pubs is a critical issue, potentially costing the sector an additional £50 million annually and putting 4,200 jobs at risk.
The trade body is urging the government to urgently review the EPR scheme and address the double counting of packaging waste to prevent unfair financial burdens on pubs and brewers.
A once-in-a-generation Budget
The sector is now looking at a once-in-a-generation Budget in November to help reduce some of the costs and save the industry.
A survey of MPs has found that they are overwhelmingly favourable towards the hospitality sector, piling pressure on the Chancellor ahead of the Budget, the British Beer and Pub Association said.
The survey, conducted by leading market research firm Ipsos, found that 96% of Conservative MPs surveyed and 86% of Labour MPs surveyed were favourable towards hospitality, and not a single MP held unfavourable opinions of the sector.
The British Beer and Pub Association said the solid, widespread appreciation underscored why the Chancellor must use this once-in-a-generation Budget to reset the crushing rates and regulations that all too often lead to pub closures.
“When MPs from across the political divide are united in their recognition of the hospitality sector, it should be clear to the Chancellor that the correct thing to do at the Budget is to back pubs, said Emma McClarkin, CEO of the British Beer and Pub Association.
“MPs know how much pubs matter to their constituents and communities, and we hope this further underlines the almost universal support of the pub.”
She reiterated that this Budget is a once-in-a-generation opportunity to undo years of crushing fiscal pressures and reset rates and regulations which currently punish the pub and, therefore, jobs and communities.
“This Budget must deliver meaningful business rates reform at pace, cut beer duty, mitigate soaring employment costs, and review the chaotic and unfair packaging tax. Doing this will mean pubs can grow from strength to strength and, with them, so will the economy, job market, and communities,” she said.
