Rishi Sunak has been warned that prices will rise if he continues with the government’s waste strategy in a draft letter from the British Retail Consortium seen by Sky News.
Sky News reports it has obtained the draft of a letter from the British Retail Consortium (BRC), which outlines industry concerns about the costs associated with new packaging and bottle recycling measures. Speaking to Sky News, industry sources said many retail bosses are likely to sign the letter.
In the letter, which is expected to be sent to the PM next week, retailers urge the prime minister to redesign the deposit return scheme (DRS) set to be introduced in Scotland. It also calls on Sunak to adopt “a more pragmatic approach” to the government’s waste strategy.
The retail industry is writing to the Prime Minister to express concerns over the implementation and operation of a DRS and EPR.
Reacting to the report, Helen Dickinson, Chief Executive of the British Retail Consortium, said: “The retail industry is writing to the Prime Minister to express concerns over the implementation and operation of a Deposit Return Scheme and Extended Producer Responsibility. These two schemes will add around £4 billion in costs to retailers, increasing prices for consumers at a time when the cost of living is weighing heavily on households across the UK.
“Furthermore, the current proposals are unlikely to deliver meaningful improvement in recycling and waste disposal. Retailers support the aim of these schemes, but it’s vital they are implemented in such a way that works for consumers, and delivers meaningful benefit to the environment.”
According to the report, the letter states: “The current policy proposal will add to inflationary pressures and fail to deliver a fit-for-purpose scheme. It will significantly increase the costs of packaging which, in the current economic climate, will increase prices for consumers, without seeing the desired increase in recycling.
“Whilst retailers and government are focused on reducing inflation for consumers, and with the backdrop of huge increases from EPR (extended producer responsibility) charges, we do not understand why Defra (Department for Environment, Food and Rural Affairs) is continuing to pursue the DRS scheme at this time.”
Sky News’ report continues that the letter warns that increased fees would amount to £50 per household in the UK and a DRS in England would raise expenses for the sector by an additional £2 billion. The letter also raises concerns that different schemes across the UK won’t be aligned.
CIWM would be concerned, however, if there was any pause in the implementation of EPR.
Commenting on the story, Lee Marshall, Policy and External Affairs Director, CIWM, said: “In our response to the consultations on DRS, CIWM suggested that it should be delayed allowing the changes under consistent collections and EPR to bed in.
“Their effectiveness in increasing recycling could have been assessed and further research done on digital DRS solutions before reviewing if a DRS was then still needed. CIWM would be concerned, however, if there was any pause in the implementation of EPR.
“These reforms are long overdue and are needed if the household and commercial collection systems are to deliver higher levels of recycling. Moving towards circular economy principles should be at the heart of all policy making and EPR will help in moving the world beyond waste. Work should continue on implementing EPR in full.”
Responding to the report, Cllr Clyde Loakes, Chair of NLWA (North London Waste Authority), commented: “This is a hugely disappointing response from retailers, who should already be going faster and further than what is finally on the table, after years of delays and navel gazing.
“They’ve had and still have more than enough time to adapt and plan for these changes. We call on the Government to revert to its original high ambitions.”
