Packaging: Extended Producer Responsibility

Will Forster Excerpts

Thursday 27th November 2025 Westminster Hall

[Mr Will Forster (Woking) (LD)]

Thank you, Ms Lewell; I will endeavour to keep to five minutes. It is a pleasure to serve under your chairship. I thank the hon. Member for Gower (Tonia Antoniazzi) for securing this timely debate so soon after the Budget.

As the hon. Lady said, there is growing concern about the extended producer responsibility scheme. I call it the “glass bottle tax” if I am trying to explain it to a constituent I am having a drink with in one of Woking’s pubs, because they do not get EPR. They understand that it is a glass bottle tax, but they do not get the reasoning behind it.

EPR is intended to reduce waste and increase recycling, which are aims that we all probably share. However, the scheme risks hurting our economy, and especially the hospitality sector, which has suffered so much during the covid pandemic and the cost of living crisis. That is especially true in my constituency. We are proud to have 34 pubs and one brewery—Thurstons in Horsell. We are also home to the brewing giant Asahi, which owns and operates Fuller’s brewery in the constituency of the hon. Member for Hammersmith and Chiswick (Andy Slaughter), which I have had the pleasure of visiting—in my opinion, it counts as a constituency visit.

I am very glad to have Thurstons and Asahi, and I am very glad that Woking has a thriving hospitality community, but it is under threat. The hospitality industry supports over 2,000 jobs and contributes £131 million to our economy, yet the glass bottle tax will impose more than £150 million in new costs on brewers for glass packaging alone. At a time when businesses are struggling with inflation, energy prices and higher taxes, that additional burden will deter investment and put jobs at risk.

Will the Minister commit to reviewing EPR fees in the light of decisions announced at yesterday’s Budget? The fact that beer duty is rising in line with inflation will have an impact, and will add yet another cost at a time when hospitality is already under pressure. Brewers and pubs tell me that they cannot absorb both. The continued effect of higher beer duty, which is way out of kilter with our European neighbours, and EPR charges will inevitably reduce investment and will add to the growing trend of pubs and hospitality venues being closed down.

The Government cannot tax their way to growth. There are serious issues with double charging. Although EPR is meant to apply only to household waste, many pubs already pay for commercial waste collection. Despite that, the sector faces £60 million in costs, with some larger pubs paying as much as £2,000 more each year.

DEFRA has accepted the flaw but does not have a plan to correct it until year three of the scheme. That is not acceptable, and pubs cannot afford to wait that long. I look forward to hearing from the Minister about what steps the Government will take now to prevent businesses from paying twice for the same waste. Will paying twice be backdated when the charges are introduced in year three?

The Office for Budget Responsibility has classified EPR as a tax, which adds further uncertainty to brewers and pub owners. Without clear guidance on reporting and future fees, businesses cannot plan, invest and expand. At a time when our economy needs stability, that uncertainty threatens growth, which is one of the Government’s key drivers.

The Liberal Democrats have proposed a 5 percentage point VAT cut on hospitality because we feel that we need to support the hospitality sector, particularly to compensate for EPR. Even if only half of that VAT cut were passed through, the average household would save £135 by April 2027. The remaining benefit would help businesses to stay open, protect jobs and support wages. We know that for a fact as we saw it with the 2008 VAT reduction, at least 52% of which was passed on to customers.

Our goal should be support responsible environmental reform while protecting pubs, breweries and the hospitality sector. They hold our British communities together, and they are a big part of the British way of life. Like the hon. Member for Gower, I urge the Minister to listen to the industry. Will the Government address the risks of double charging in our economy? Can they provide clarification on fees? Will the Minister work with Cabinet colleagues to reduce the harm to the brewing and hospitality sector?