Cost of food will increase due to new 'plastic tax'.

The UK government has recently announced a new green levy on packaging used by retailers and manufacturers in an effort to reduce the amount of waste produced in the UK. This levy, also known as the Extended Producer Responsibility for Packaging, is estimated to cost firms around £1.4 billion per year. The government hopes that this initiative will help meet their net zero targets and decrease the amount of packaging that ends up in landfills both in the UK and abroad.

According to a report by the Department for Environment, Food and Rural Affairs, it is projected that between 85% to 100% of this cost will be passed on to consumers, resulting in an increase of £28-£56 in shopping bills for households by 2025. The levy will charge companies more for using plastic packaging, while more sustainable materials like paper or cardboard will have lower fees. This move has been welcomed by both the British Retail Consortium and the Food and Drink Federation, who see it as a step towards a cleaner environment.

However, some have criticized the initiative, such as Lord McKinlay, who believes that it will only add unnecessary costs on consumers. The scheme was initially proposed by Conservative Michael Gove when he was the environment secretary, but was put on hold after receiving backlash from Tory MPs. The revenue from this scheme will be used to improve recycling infrastructure, which is something that both industry leaders and the government agree is necessary.

So, how exactly will this new levy work? According to Defra, companies will be charged different rates based on how sustainable their packaging is. Paper or board packaging, which is the cheapest material, will be charged £215 per tonne, while plastic, which is the most expensive material, will cost £485 per tonne. Other materials fall somewhere in between, depending on their sustainability. Companies will only be charged the first time the packaging is placed on the market, and it is hoped that this will encourage the use of reusable materials like glass.

Jim Bligh, Director of Corporate Affairs and Packaging at the Food and Drink Federation, welcomes the release of base fees for the Extended Producer Responsibility. He believes that this will help manufacturers take more responsibility for packaging and plan for the costs in 2025. Andrew Opie of the British Retail Consortium also sees this as a positive step towards cutting unnecessary packaging. However, he also acknowledges that the increased costs will ultimately be passed on to consumers, and therefore, it is essential that the scheme delivers a significant improvement in recycling.

On the other hand, Lord McKinlay has accused the Labour government of being too focused on green politics and imposing unnecessary burdens on businesses. He believes that this will ultimately lead to an increase in inflation and food costs for families. However, a Defra spokesperson has emphasized the importance of this initiative in achieving their goal of ending the throwaway society and reducing waste.

For those wondering what net zero means, it refers to achieving a balance between the amount of greenhouse gases emitted into the atmosphere and the amount removed from it. These gases, such as carbon dioxide and methane, contribute to climate change. In order to reach the net zero target by 2050, the UK government has made a series of pledges, including ending the sale of new fully petrol and diesel cars by 2030 and investing in technology to capture and store CO2. There are also plans to increase the use of wind and solar power and install 600,000 electric heat pumps by 2028.

Despite the progress made in reducing greenhouse gas emissions, the UK is still in danger of missing its target of cutting emissions by 68% by 2030. This was highlighted by the Climate Change Committee in July. In response, Prime Minister Sir Keir Starmer announced a new target to cut emissions by 80% compared to 1990, by 2035. This was announced at the COP29 climate summit in Azerbaijan, showing the government's commitment to tackling climate change and achieving a cleaner, more sustainable future for the UK.

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