Fentimans, a historic soft drink maker, has raised alarms over proposed glass tax reforms that could threaten its 120 years of business. The company’s CEO, Ian Bray, has voiced grave concerns about the financial impact on small businesses like theirs.
The tax, part of Defra’s ‘extended producer responsibility’ initiative, aims to add an estimated £300 per tonne to the cost of recycling glass. Industry leaders are urging the government to reconsider this policy due to its potential economic repercussions.
Impact of Proposed Glass Tax on Fentimans
The new glass tax, part of the Department for Environment, Food and Rural Affairs’ (Defra) ‘extended producer responsibility’ initiative, poses a significant financial burden for Fentimans. CEO Ian Bray has voiced concerns, stating, “It would be tragic if this inequitable policy destroyed our business after 120 years just because it hasn’t been thought through.”
The tax is expected to add an estimated £300 per tonne to the cost of recycling glass, a cost that small businesses like Fentimans find challenging to absorb. If implemented, this tax could become a prohibitive expense, particularly affecting historic and smaller enterprises.
Industry-Wide Backlash
The proposed tax has not only alarmed Fentimans but also sparked backlash from brewers and soft drink manufacturers. Industry leaders argue that the additional costs will place an undue burden on the sector, which is already grappling with other financial strains.
The British Beer and Pub Association, among other trade bodies, have called upon Environment Secretary Steve Reed to reconsider the tax. The association has estimated the cost implications to be between 3p to 7p per bottle for the 3.2 billion bottles of beer sold annually in the UK, resulting in an additional £84 million to £212 million expense.
Economic Impact on the Brewing Industry
Emma McClarkin, Chief Executive of the British Beer and Pub Association, highlighted the profound economic impact of the proposed tax.
She elaborated, “These estimated fees provide long-overdue clarity, but they sharply reinforce our concerns about the eye-watering additional costs brewers will be expected to bear from next year and the impact on customers.”
The brewing industry supports hundreds of thousands of jobs and invests in low-strength and alcohol-free options that align with public health goals. Despite its focus on sustainability, the sector is already heavily taxed and may struggle to shoulder additional costs.
Paul Davies, CEO of Carlsberg Marston’s Brewing Company, emphasized the industry’s commitment to sustainability, citing goals such as achieving zero packaging waste and ensuring 100% recyclable, reusable, or renewable packaging by 2030. Yet, he also voiced concerns about the financial strain amid high energy and material prices.
Calls for Government Reconsideration
Paul Davies urged the government to hold constructive discussions with industry stakeholders about implementing extended producer responsibility (EPR) in a way that balances environmental ambitions with economic sustainability. He stated, “We would urge the government to hold constructive discussions with industry about how EPR could be implemented in a way that delivers our shared ambitions for sustainability, whilst also supporting and preserving our treasured national beer and pub culture.”
British Glass, representing the glass industry, has been lobbying for a delay in the tax’s implementation, warning that it could lead to significant job losses.
Disparity in Policy Implementation
A significant point of contention is the disparity between the treatment of glass and other packaging materials such as plastic and aluminium. These have been granted an additional two-year grace period before facing similar waste policy costs.
Nick Kirk, Technical Director at British Glass, highlighted this disparity, saying, “These materials are due to be part of the incoming deposit return scheme in October 2027, but will not be subject to [extended producer responsibility] fees in the meantime, meaning they benefit from an additional two years without waste policy costs.”
This uneven implementation timeline has intensified the tension between the glass industry and other sectors, as it presents a competitive disadvantage for glass manufacturers.
Defra’s Stance on the Proposed Measures
Defra has defended the proposed measures, describing them as a crucial step towards reducing waste and advancing a circular economy.
A spokesperson from Defra remarked, “Extended producer responsibility for packaging is a vital first step in cracking down on waste as we move towards a circular economy and we have always been clear these fees are our initial estimates.”
Ongoing Discussions and Future Steps
Defra continues to engage with the glass industry to explore more workable approaches for calculating the cost of glass recycling.
These discussions aim to find a balance between environmental objectives and the economic realities faced by the glass sector.
The proposed glass tax reforms present a significant challenge for Fentimans and the wider beverage industry.
Without government reconsideration, these measures could lead to substantial financial burdens, job losses, and potentially, the closure of longstanding businesses like Fentimans.
