British Retail Consortium (BRC) Chief Executive Helen Dickinson has described the Resources and Waste Strategy as a £4 billion a year headache for retailers and their customers.
In a letter to The Telegraph, Dickinson claimed extended producer responsibility (EPR), the plastic packaging tax (PPT) and the upcoming deposit return schemes (DRS) are “unambitious” and will burden consumers with higher costs and do little to improve the UK’s “abysmal” recycling rates.
In her letter, Dickinson wrote: “Just as inflation looks to be turning a corner, these new policies put this at peril. The government needs to look at these in turn and consider whether to implement, postpone or scrap each one.
“From next April, an inflation-linked business-rates hike is likely to cost retail at least £400 million a year – money better spent on cutting prices.
“Retailers are playing their part. If the government persists in introducing this raft of new regulations and tax rises, it has only itself to blame when it fails to meet its own inflation targets.”
If the government persists in introducing this raft of new regulations and tax rises, it has only itself to blame when it fails to meet its own inflation targets.
The UK government published the Resources and Waste Strategy in December 2018, which committed it to several actions, including the introduction of an EPR scheme for packaging which is planned to be phased in from 2024.
Defra says the revenue generated from EPR will support local authorities and mean that all households can recycle the same packaging materials.
Regarding DRS policy, Defra says it recognises public concerns about cost but plans for the operating costs of the scheme to “largely be met” by revenue from the sale of collected material and revenue from unredeemed deposits.
We have been engaging closely with manufacturers, retailers and packaging companies on the design of these schemes and on delivery plans.
A spokesman for the Department for Environment Food and Rural Affairs (Defra) commented: “As the Prime Minister has set out, growing the economy is an immediate priority for this government.
“Supporting businesses to grow is a crucial part of this – which is why we want to ensure a simple and effective system for our Extended Producer Responsibility and Deposit Return schemes that benefits both businesses and consumers.
“We have been engaging closely with manufacturers, retailers and packaging companies on the design of these schemes and on delivery plans. We will continue to work with these groups as we finalise plans to ensure that the schemes will deliver our environmental goals.”
