Labour’s packaging levy could put at least 4,752 jobs in Britain’s glass manufacturing industry at risk, according to the GMB union.
The warning relates to the Government’s Extended Producer Responsibility scheme, which requires brands and retailers to cover the cost of collecting, sorting and recycling the packaging they place on the market.
The British Beer and Pub Association estimates the levy is costing the brewing industry £124million a year, adding around six pence to the cost of every 500-millilitre glass bottle.
Because the scheme calculates fees according to the weight of packaging materials, glass containers face significantly higher charges than lighter alternatives.
The GMB union and industry representatives are urging the Government to review the policy, warning it could have serious consequences for British manufacturers.
Industry figures say Britain now has the highest packaging fees in Europe, placing domestic glass producers at a competitive disadvantage.
The union said that unless charges are reduced, factory closures could become unavoidable, with industrial communities outside London particularly exposed to job losses.
Andy Belfield, regional secretary at GMB, said: “British workers are seeing their jobs put at risk as providers move away from British glass bottle production.”
GMB warns Labour packaging levy could put 4,752 glass jobs at risk
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He said: “These are good, well-paid jobs in our industrial heartlands that Britain can’t afford to lose. GMB are calling for the Government to stop the glass tax and protect the livelihoods of the workforce and their communities.”
The British Beer and Pub Association has also raised concerns about the financial impact of the levy on brewers.
Emma McClarkin, the association’s chief executive, said: “The exorbitant fees are wiping out the slender profit brewers make on a bottle of beer, which not only threatens jobs and British supply chains, but could ultimately undermine the Government’s ambitions for the economy and environment.”
She said the scheme had created “sky-high bills for glass” and described it as “another crushing cost that brewers are forced to bear.”
Ms McClarkin said a review of the policy would be “welcome and urgent” as the industry looks to support Britain’s “world-class brewers”.
The issue was debated in the House of Commons earlier this week after Sarah Champion, the MP for Rotherham, secured a parliamentary debate on the levy
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During the debate, Minister Mary Creagh said the Government would launch a new call for evidence, inviting industry representatives to submit further information on the impact of the scheme.
Nick Kirk, director of British Glass, welcomed the announcement but said previous evidence submitted by the industry had not been accepted.
He said: “A call for evidence is welcome but British Glass has already submitted independent evidence to DEFRA which was dismissed. The Government must ensure that industry voices are heard this time round.”
Labour’s planned review could lead to further discussions over the operation of the Extended Producer Responsibility scheme as manufacturers continue to raise concerns about its impact on costs, competitiveness and employment.