Pubs win £870-a-year packaging tax victory after Mirror campaign
Pubs win £870-a-year packaging tax victory after campaign

Glass drinks containers supplied directly by producers to pubs, restaurants and other licensed hospitality venues will become exempt from Extended Producer Responsibility (EPR) fees from April 2027, in a move that could save pubs up to £870 a year.

The change, announced by the Department for Environment, Food and Rural Affairs (Defra), follows a Mirror campaign on the issue. It is expected to save businesses up to 6p on every beer bottle and 10p on each wine bottle. According to the Government, a pub selling 10,000 beer bottles and 3,700 wine bottles a year could save as much as £870.

The changes come after concerns that hospitality businesses have effectively been paying twice to recycle the same packaging — through charges passed on by suppliers and payments to commercial waste contractors.

Government action on double charging

Environment Secretary Dame Angela Eagle said: "We've listened to industry and hospitality businesses and are stepping in to reduce the fees for the most recyclable packaging — including tackling double charging on glass bought by pubs.

"This government is committed to supporting British business and these changes back the glass industry and pubs while making sure we're all doing our bit to reduce waste."

Ministers are also planning a wider overhaul of packaging waste charges, with businesses set to be consulted on a system that rewards the use of easily recyclable materials. Under the proposals, packaging such as glass and paper could attract lower fees, while harder-to-recycle materials, including some plastics, would cost more.

The Government said the changes could reduce fees for the most recyclable packaging by up to 40 per cent a year.

Industry reaction and remaining concerns

The EPR scheme was introduced to shift the cost of managing household packaging waste from taxpayers and councils to the businesses responsible for putting packaging on the market. While the Government insists producers must continue contributing towards recycling costs, it says the system must operate fairly and avoid placing disproportionate pressure on particular industries.

Emma McClarkin, chief executive of the British Beer and Pub Association (BBPA), said the changes would bring relief to the sector but warned that leased and tenanted pubs must not be left out.

She said: "Across the beer and pub sector there will be much relief that the Government will reduce the costs of glass packaging fees and is also seeking to end the pernicious double charging that has been unfairly affecting Britain's cherished pubs."

Ms McClarkin added that the measures could reduce cost pressures on British brewers by tens of millions of pounds. However, she warned that around 12,000 publicans running leased and tenanted pubs as small and medium-sized businesses must also be included, or more than a quarter of the country's pubs could miss out.

Nick Kirk, executive director of British Glass, also welcomed the announcement, saying it recognised the importance of the UK glass industry and would give manufacturers greater confidence to invest.

Further changes and investigations

The Government said £1.4 billion had already been provided to councils through the EPR scheme to improve recycling services. Further changes are also planned, with a call for evidence on how businesses can increase packaging reuse expected next month.

PackUK is also due to launch a consultation in early 2027 on manufacturers' packaging waste fees, with the aim of ensuring materials that are easier to recycle cost less.

Separately, the independent Trade Remedies Authority is investigating imports of glass containers from China and Turkey, including allegations of dumping and subsidies. A provisional anti-dumping measure on Chinese imports was introduced on September 9, following a recommendation from the authority, with both investigations continuing.