New ‘glass tax’ condemned as ‘grossly unfair’ by Birmingham business district

A new ‘glass tax’ which is set to increase the running costs of already hard-pressed bars and restaurants has been condemned by a leading Birmingham business district.

The Southside District is outraged at the packaging Extended Producer Responsibility (pEPR) scheme, which comes into effect in the UK on 1 April, supposedly transferring glass recycling costs from local authorities to producers and businesses.

It has been estimated that the 'glass tax' could increase costs by between 3p to 7p per beer bottle, and by much more for larger wine and soft drinks bottles.

Julia Robinson, general manager of Southside District, which supports more than 330 businesses in Birmingham’s Chinatown and Gay Village, has warned that the new tax will result in hospitality venues paying twice for the same service.

Ms Robinson said: “This new ‘glass tax’ as it stands will be grossly unfair to our hospitality venues like bars and restaurants because they already pay for their commercial waste to be collected and glass to be recycled.

“We can understand the need to tax supermarkets and off-licences to help local authorities pay for glass recycling, but why should bars and restaurants have to pay twice and receive one service?

“The government needs to quickly rethink and change this new ‘glass tax’ or else they will further damage an already struggling hospitality industry, leading to more closures and redundancies.”

Ms Robinson’s condemnation of the ‘glass tax’ has been echoed by James Wong, owner of the Chung Ying restaurant in Birmingham’s Chinatown, and a director of the Southside District.

Mr Wong has now written to Ladywood Labour MP Shabana Mahmood, whose constituency includes his restaurant, asking her to appeal to the government on behalf of the hospitality sector.

Mr Wong’s letter says: “The introduction of the ‘glass tax’ is yet another hit to a hospitality sector already at breaking point. Businesses across the UK are shutting their doors every week, but instead of relief, we’re being handed yet another cost.

“Many venues already pay privately for glass collection. Now they’re expected to pay again – without any additional service or clear benefit.”

Mr Wong added: “Hospitality is vital to our economy and community life here in Birmingham, yet policies like this show how disconnected the government is from the reality of what we’re facing. We need support, not more pressure.”

British Glass says the new tax will be around 50 times higher for glass beverages (based on a 330ml bottle) than other materials, while an estimate by the British Beer and Pub Association is that the tax could increase costs by between 3p to 7p per beer bottle.
However, the government has claimed the new tax will create a £10 billion investment in the recycling sector over the next decade and see packaging producers, rather than the taxpayer, cover the costs of managing waste.

Ends

Press release created by Dyson Media on behalf of Southside District.

Southside

The Southside District is at the cultural heart of Birmingham, offering everything from great places to enjoy a drink and eat out to going to the theatre and dancing. The Southside District BID team is constantly busy, working behind the scenes to support local businesses. BID stands for Business Improvement District, a not-for-profit, elected organisation delivering exactly what the title suggests: business improvement. The BID operates from the steps of New Street Station, along Bristol Street and around the impressive new Smithfield development, including the city’s popular Chinatown and Gay Village.