The British glass industry could become “No. 10 North’s first major test”, according to the Financial Times. A new government green levy introduced last year has put thousands of jobs at risk in the “heavily northern-based sector”, creating a headache for Andy Burnham.
The Extended Producer Responsibility scheme is based on “the ‘polluter pays’ principle to help local councils with the cost of recycling”, said The Times. It makes businesses responsible for the collection and recycling costs of the goods they put on the market, including packaging. Because the fees are calculated according to weight, glass is facing disproportionate costs compared to cardboard and plastic.
The policy, drawn up by the Department for the Environment, Farming and Rural Affairs, is expected to raise about £1.6 billion a year. But it comes at an “acute time” for the glass sector, industry body British Glass told The Times.
The policy is making the British glass industry more expensive than the cheap imports from China and Turkey that are flooding the market. Five of the six main glass packaging manufacturers are based overseas, so the UK “has to be attractive to foreign owners as an economy, but also from a policy point of view”, said a British Glass spokesperson.
Action needs to come swiftly, said Labour List. “Stand next to a glass furnace for a few minutes, feel the heat, listen to the noise and one thing becomes obvious.” This is not an industry “that can simply switch off at the end of the day” or “wait for market conditions to improve”.
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