#packaging-tax

#packaging-tax

Following last year's Budget, where retailers were hit with £5 billion in extra employment costs due to higher employer National Insurance and rising National Living Wages, the industry has been left with little room to absorb additional costs. With EPR set to cost industry billions, this new tax will be yet another inflationary pressure, at a time when food prices are already rising fast, with The Bank of England estimating that the policy alone will add 0.5% to food inflation.

Any policies which affect the operating costs of business should be considered very, very carefully because of the very real risk they find their way back into the food system and on to prices, Hurley told the BBC. UK grocery inflation jumps to highest level in 15 months The German discounter said its decline in profits from 552.9m to 435.5m was in part due to the budget chain's spending in price promotions and raising pay for staff, as well as an intensive store opening programme.

Senior figures from various UK industries warn that the government's new packaging tax will be detrimental, with increased costs potentially passed onto consumers or leading to business relocation.