Packaging: Extended Producer Responsibility

Neil Hudson Excerpts

Thursday 27th November 2025 Westminster Hall

[Dr Neil Hudson (Epping Forest) (Con)]

It is a great pleasure to serve under your chairmanship, Ms Lewell. I congratulate the hon. Member for Gower (Tonia Antoniazzi) on securing this critical debate.

As chair of the all-party parliamentary beer group, the hon. Lady has heard first hand from many stakeholders, including the British Beer and Pub Association, about how the extended producer responsibility regime is directly affecting businesses. We have heard contributions from Members from across the House today, and indeed from across the United Kingdom, proudly standing up for the businesses in their constituencies and highlighting some of the challenges that the scheme is creating, as well as the challenges facing the hospitality, pub and brewery sector in the United Kingdom in the last year under this Labour Government.

As well as the hon. Lady, we have heard powerful representations from the hon. Members for Woking (Mr Forster), for North West Leicestershire (Amanda Hack), for Strangford (Jim Shannon)—I had to hold myself back from intervening on the hon. Gentleman—for Llanelli (Dame Nia Griffith), who talked powerfully about steel packaging, for Runcorn and Helsby (Sarah Pochin) and for Caerfyrddin (Ann Davies).

I am extremely proud of the positive action taken by the previous Conservative Government on packaging and waste. Between 2010 and 2022, the amount of waste going to landfill was successfully reduced by 47%, and the amount of biodegradable waste going to landfill by 46%. In 2015, we introduced a charge on single-use plastic bags, resulting in a 95% cut in sales of plastic bags in major supermarkets. Building on that, we went further and banned the use of single-use plastics such as plastic straws, cutlery and cotton buds, which also restricted businesses’ use of other single-use plastics such as plastic plates.

The last Conservative Government also introduced a tax on plastic packaging containing less than 30% recycled plastic, which encouraged businesses to reduce the use of single-use plastics in their supply chains. Finally, we introduced a simpler recycling collection system, which I am pleased the current Government have taken forward from us, thereby continuing to make recycling more user-friendly, cutting down on confusion and the time spent recycling, and ultimately improving recycling rates, which is good for our environment. These actions were achievable and proportionate.

Importantly, the last Government also laid the correct economic foundations to make those changes and supported businesses—which, I have to say, stands in contrast to what we heard yesterday when the Chancellor delivered her autumn Budget. Many Members here joined me to speak in this Chamber in May, when we had a Westminster Hall debate on glass packaging and the EPR scheme. Back then, I raised my concerns with the Minister about the economic situation and spoke about how, when introducing measures that place costs on businesses, the Government have a responsibility to consider whether this is the appropriate time to impose new burdens on businesses. The British Retail Consortium has said that retailers support the “polluter pays” principle, but it is concerned that the levy will not deliver value for consumers in these challenging economic times—times made far worse by this Labour Government and their mishandling of the economy, as we saw in the run-up to, and the delivery of, yesterday’s retrograde Budget.

The hospitality industry is a key growth sector. A June 2023 report by Ignite Economics, which was commissioned by UKHospitality, found that, for every pound that the UK hospitality industry directly contributes to GDP, it creates a further 58p indirectly and a further £1.30 when including the induced impact. That report also outlined that between 2016 and 2023, hospitality increased its annual economic contribution by £20 billion, to £93 billion. Furthermore, since 2016 employment in the sector has risen to 3.5 million, making hospitality the third largest employer in the country. Finally, hospitality contributed £54 billion in tax receipts to the Treasury last year.

Unfortunately, it appears that this Government do not understand that higher costs and taxes burden businesses and can cause them to close, leading to job losses and destroyed livelihoods. Since the autumn Budget last year, figures published in August of this year show that two hospitality venues are closing every day—including over 100 pubs and restaurants.

Turning again to glass, which is a key reason behind this debate, glass packaging is 100% recyclable—and infinitely recyclable, meaning it can be recycled again and again without losing quality. The previous Secretary of State for Environment, Food and Rural Affairs, the right hon. Member for Streatham and Croydon North (Steve Reed), received a joint letter from the British Beer and Pub Association, British Glass Manufacturers’ Confederation, Scotch Whisky Association, WineGB, Wine and Spirit Trade Association and UKHospitality. The letter warned the Government about the “numerous economic headwinds” that businesses are facing, and highlighted that, while glass represents only 5% of the volume of containers placed on the market, the glass charges cover approximately 30% of the scheme’s cost. The fees are much higher for glass than any other materials, at 10p per average bottle of wine and 17p for every average bottle of spirits, eight times as high as equivalent EU schemes. Indeed, those organisations said in a joint statement:

“There is a risk that without action from the UK government to reduce these fees and move to meaningfully support businesses rather than restrict them, the scheme will result in producers switching to less sustainable materials and that many producers will be charged twice—further restricting investment into the economy.”

Does the Minister agree that that is clearly not how a circular economy should run?

The Minister may be familiar with Mermaid gin and its iconic bottles, which are so beautiful that some companies have upcycled empty bottles into drinking glassware. The Isle of Wight Distillery, which produces Mermaid gin, has said that bottles were designed to be reused and returned to the circular economy. As their compliance and sustainability manager noted,

“it would actually be cheaper to put our liquid into plastic bottles.”

Does the Minister agree that no environmental or recycling policy, however well-intentioned, should end up incentivising companies to think about switching to packaging that is actually less environmentally friendly?

Furthermore, in an article published 31 October by Food Manufacture, Josh Pitman, managing director at sustainable packaging firm Priory Direct, is quoted as saying that he is still receiving hundreds of queries from its over 21,000 customers who do not understand EPR and what they need to do. Mr Pitman outlines how his firm has effectively acted as “EPR customer service” and is quoted as saying that

“there appears to be a lack of clear, helpful guidance and limited proactive engagement with affected businesses from government, aside from some overly exclusive and expensive events featuring official spokespeople.”

What action will the Minister take to provide clearer and more accessible guidance to affected businesses?

The Minister may also be aware that One Water, a water brand that seeks to provide clean water and sanitation to communities around the world, has warned that EPR is placing a disproportionate burden on compliant companies, with the scheme estimated to cost the firm £140,000 in 2025. It is estimated that the scheme has already contributed to a £400,000 loss in glass product sales, mostly through lost hotel, bar and restaurant sales. How will the Minister work with stakeholders to ensure that compliant companies are not disproportionately affected?

Climbing food prices, record levels of farm closures, two pubs or restaurants closing a day and business confidence at a 15-year low, as well as the awful costs of the family farm tax—even before it has fully come into force—outline why we are currently in a food and farming emergency. As the Minister may know, last week the Leader of the Opposition and the shadow Secretary of State for the Environment, Food and Rural Affairs, my right hon. Friend the Member for Louth and Horncastle (Victoria Atkins), hosted a food and farming emergency summit to ask farmers, fishermen and food producers what urgent measures they need to survive the next 12 months. The EPR was raised as a key issue that is causing the sector significant concern because food, drink and hospitality businesses, including local pubs, are currently being unfairly charged twice.

Following that summit, and having listened to the measures the industry said are needed, my right hon. Friend the shadow Secretary of State wrote to the Secretary of State to ask the Government to work with her on the industry’s call for a rapid review of the impact of the Government’s EPR scheme on the food, drink and hospitality sectors, including through the double charging of pubs, about which we have heard many times today. I hope that the Minister will consider the merit of that request, which came directly from those attending the emergency summit.

I noted in yesterday’s Budget that the Government will: consult in 2026 on the extended producer responsibility and proposals to measure how often and how well local authorities use fees; appoint a producer responsibility organisation by March 2026 to give industry a role in the scheme’s operation; and consult on reforms to the packaging waste recycling note system. Perhaps the Minister will repeat that in due course. That is all well and good, but the sector needs urgent action now to ensure that the EPR system is fit for purpose and that our fantastic food, drink, retail and hospitality sectors are protected and encouraged to thrive.

--- Later in debate ---

[Mary Creagh]

I thank my hon. Friend for his follow-up questions. Several colleagues have raised the issue of cost being calculated by weight and not by unit, but waste management costs are largely driven by weight. We have taken into account other factors that influence collection costs, including the estimated volume of each material in bins and collection vehicles. Glass is a heavy material with a low resale value. A unit of glass packaging costs more for a local authority to manage as waste than an item made up of more lightweight and high-value material. Our recycling assessment methodology changes are published on defra.gov.uk, so people can see the changes that we are proposing to bring in next year and how we are ramping up the fees payable for less recyclable packaging.

Reuse and refill of packaging provides a real opportunity for economic growth and job creation. Earlier this year, GoUnpackaged produced economic modelling that made a compelling case for scaling up reuse in UK grocery retail. That work showed end-to-end system cost savings of up to £577 million a year, highlighting the economic viability of reuse in the UK. In response to that research, major grocery retailers have committed to working together to scale reusable packaging systems. Innovate UK has commissioned a scoping study to develop the blueprint for the first wave of this bold multi-retailer reuse scheme, so change will be coming in this sector pretty fast.

[Dr Hudson]

The Minister is talking about economic viability. I mentioned that the Government said in the Budget yesterday that they will consult on the EPR scheme, and she has repeated that. The Conservatives are calling for an urgent review. A consultation is not good enough; proverbially, that just kicks the steel can down the track. Will the Government commit to an urgent review so that businesses do not suffer in the coming months?