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Packaging Tax Will Push up Prices for Consumers, Say Industry Bosses

The extended producer responsibility scheme is expected to raise food inflation by 0.5%, with over 80% of the tax cost passed to consumers, increasing retail and household expenses.

  • The extended producer responsibility packaging tax takes effect on October 1, requiring UK companies to report detailed packaging data and pay fees based on materials used.
  • This policy follows last year's Budget where retailers faced £5 billion in additional employment costs from rising national insurance and living wages, limiting their ability to absorb new taxes.
  • The British Retail Consortium survey found 85% of retailers report significant compliance burdens and that 78% plan to reduce packaging volume, while 85% aim to increase sustainable materials.
  • Sean Murphy of Encirc described the recently introduced tax on glass bottles as a costly misstep for both the economy and the environment, warning that it threatens thousands of jobs across supermarkets, pubs, and glass manufacturing, and is likely to lead to higher prices for consumers.
  • Industry leaders urge the government for clarity on consumer and environmental benefits and call for legal safeguards to ensure EPR funds improve local recycling and do not become an inflationary burden.
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The Independent broke the news in London, United Kingdom on Tuesday, September 30, 2025.
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