The plastic packaging tax comes into force today (April 1, 2022). Producers and importers of plastic packaging that doesn’t include at least 30% recycled content will be hit with a £200 per tonne charge. The tax has created no shortage of confusion – a YouGov survey on behalf of waste management firm Veolia in late February of 507 retail and manufacturing businesses showed 77% were still unaware of the new levy. During a(nother) webinar run by HMRC last week 36% of attendees didn’t know if they should register or not; almost one in five (18%) still weren’t sure when the same poll was conducted at the end of the event.
“[…] the good guys will spend the money and time to comply but there are far too many businesses outside of our immediate sector who might not,” noted Foodservice Packaging Association executive director Martin Kersh recently. HMRC is unlikely to be heavy-handed in the first phase of implementation, lawyers told Ends Report recently, particularly given the uncertainties and lack of clarity in many aspects of the tax’s application.
As the Treasury cracks on with tackling plastic pollution, Defra continues to dither over its policies on packaging. The department finally published an analysis of responses to its consultation on extended producer responsibility (EPR) for packaging, and what it plans to do next. Packaging Europe offered a decent summary of some of the key points, which included: delaying implementation of the new regime until 2024 and fees until 2025; the exclusion of glass for England and Northern Ireland’s Deposit Return Scheme (DRS); and a requirement for standardised labelling, including ‘do not recycle’ on all compostable or biodegradable packaging. The latter showed a “startling lack of vision” for future management of resources in the UK, said the Bio-based and Biodegradable Industries Association.
EPR also includes a mandatory take back scheme for the 3.2 billion fibre-based composite cups in 2024. Only those with 10 or more full-time employees need offer dedicated bins for the cups, a move that the FPA said could see four out of 10 coffee shops not involved, leading to frustration among consumers. The scheme should cover all retailers the association said. There is much to chew over in the documents – as well as the accompanying consultation on tweaks to the current system that will remain in place in the meantime – so watch out for Footprint’s next Plastics Package on April 11.
Iceland, the frozen food specialist, is one of the businesses that has gone all out in its bid to be plastic-free – but struggled to do so. It’s now had to rethink another big green pledge. In 2018 the retailer removed all palm oil from its own label products and by doing so became heavily reliant on sunflower oil. Following Russia’s invasion of Ukraine (both key producers of sunflower oil), Iceland has had to turn back to certified sustainable palm oil. It is a “last resort” and “strictly temporary, wrote MD Richard Walker in a blog this week. “All packs will of course clearly show palm oil in the list of ingredients where it has been used,” he added.
Other food businesses have also been switching oils. The Food Standards Agency and Food Standards Scotland have published a rapid risk assessment on substituting sunflower oil with rapeseed oil, and whether it presents an allergy risk if not labelled. The frequency of allergic reactions to refined rapeseed oil is very low and reactions are mild, the agencies said. “We are urgently working with the food industry and other partners to ensure labels on food where sunflower oil has been replaced by refined rapeseed oil are made accurate as soon as possible,” said FSA chief executive Emily Miles.
On Tuesday, MPs on the Efra committee wrote to the environment secretary George Eustice for an update on what the government is doing about ‘fertiliser inflation and food security’. A day later Defra had formed an ‘industry fertiliser roundtable’, with the first meeting led by farming minister Victoria Prentis yesterday. Changes to the rules around muckspreading have also been made as chemical fertiliser prices hit record levels.
Indeed, there are concerns that producers will buy less fertiliser and crop yields will drop at a time of slimming supplies. A priority for the new roundtable will be to look at alternatives to artificial nitrogen fertilisers and how to incentivise farming methods that will restore soil health. “The ongoing damage being done to soils, wildlife, and climate poses the biggest threat to food security,” said Liz Bowles, farming director at the Soil Association. She and others want to see the government back nature-friendly, agroecological farming.
Barley costs are also spiralling prompting Adnams to join the growing number of brewers warning that the price of a pint will become even harder to swallow. The Suffolk brewer has historically looked to support local growers when sourcing ingredients for its range of beers and spirits – the majority of its barley is grown by the Holkham Estate in North Norfolk, for example. But production director Fergus Fitzgerald told The Telegraph that the global shortage triggered by the situation in Ukraine will still filter through. He said: “Probably the third quarter and the fourth quarter, that’s when we’ll see more of this coming through, and if you’re dealing with a 25% to 30% increase in costs, then you have to pass some of that on to customers.”
The Sun this week reported price per pints rising between 20p and 45p at Marston’s-owned pubs. The brewer also announced bar, kitchen and front-of-house staff would have their wages increased by 7.7%, above the 6.6% required under the government’s national living wage. “[…] we are keen to attract people to work in hospitality and stay there,” group HR director Liam Powell told the Express and Star.
