Pubs, restaurants and other hospitality businesses across the UK could see their operating costs fall after the Government announced changes to packaging waste fees designed to end double charging and make recycling costs fairer.
Under the new measures, businesses could save up to 6p on every beer bottle and 10p on every wine bottle. For a pub selling 10,000 beer bottles and 3,700 wine bottles annually, the changes could translate into savings of up to £870 a year.
The changes will particularly affect glass drinks containers supplied directly by producers to pubs, restaurants and other licensed hospitality venues. From April 2027, these containers will no longer attract Extended Producer Responsibility (EPR) fees, addressing concerns that some businesses have been charged twice for the same packaging.
The Government says the measures are intended to reduce unnecessary costs for hospitality businesses while supporting the UK glass manufacturing industry and encouraging more sustainable packaging.
Government moves to make packaging fees fairer
Extended Producer Responsibility, commonly known as EPR, is a system that requires businesses placing packaging on the market to contribute towards the cost of managing the waste it generates. The policy is designed to encourage companies to use packaging that is easier to recycle and reduce the amount of waste sent for disposal.
However, parts of the hospitality industry have raised concerns about how the system affects drinks containers, particularly where products are supplied through different distribution arrangements. Businesses have argued that the existing approach can result in unfair or duplicated charges.
The Government’s latest announcement is intended to address some of these concerns by removing EPR fees on qualifying glass drinks containers supplied directly by producers to hospitality venues from April 2027.
It will also consult businesses on how packaging fees should be calculated in future. Under the proposed approach, materials that are easier to recycle, such as glass and paper, could attract lower fees, while harder-to-recycle materials, including certain types of plastic, could cost more.
The Government says this approach could reduce fees for the most recyclable packaging by up to 40% a year. However, the potential savings will depend on the outcome of the consultation and the final fee arrangements.
Environment Secretary Dame Angela Eagle said the Government had listened to concerns from the hospitality and manufacturing sectors and was taking action to reduce charges on recyclable packaging.
She said the changes would help tackle double charging on glass bottles purchased by pubs while supporting British businesses and encouraging responsible waste management.
British glass industry welcomes the changes
The announcement has received a positive response from representatives of the UK glass industry, who believe the reforms could provide greater certainty for manufacturers and encourage investment in domestic production.
Nick Kirk, Executive Director of British Glass, welcomed the Government’s decision, describing it as recognition of the importance of the country’s glass manufacturing sector and the need for a fairer approach to packaging fees.
He said highly recyclable materials such as glass should be properly recognised within the system, adding that the proposed changes could also benefit other recyclable materials, including metal and paper.
British Glass said it looked forward to working with the Government on further reforms that reward recycling, support British manufacturing and give businesses greater confidence to invest.
The British Soft Drinks Association also described the move to tackle double charging on drinks containers supplied directly to hospitality businesses as an important first step.
Its Director General, Andy Bagnall, said the industry supported the principle of businesses taking responsibility for recycling the packaging they place on the market. However, he warned that unfairly allocating costs could undermine the effectiveness of the EPR system.
The association said it wanted to work with the Department for Environment, Food and Rural Affairs (Defra) on a solution that would also address packaging supplied indirectly to hospitality businesses.
Pubs and brewers could benefit, but concerns remain
The British Beer and Pub Association has also welcomed the announcement, saying lower glass packaging fees could ease financial pressure on brewers and pubs already dealing with significant operating costs.
Its Chief Executive, Emma McClarkin, said the proposed changes could help reduce costs across the beer and pub sector. However, she warned that the benefits must also reach smaller businesses, particularly leased and tenanted pubs.
The association highlighted the position of around 12,000 publicans operating leased and tenanted pubs as small and medium-sized enterprises. It said these businesses must be included in the reforms to avoid a situation where a significant proportion of Britain’s pubs miss out on the potential savings.
The association also called on the Government to consider the combined impact of packaging policies and other business costs on the long-term sustainability of the pub sector.
The Government says the wider EPR scheme has already provided £1.4 billion to councils to improve recycling services. It maintains that producers should continue contributing towards the cost of managing packaging waste, but acknowledges that the system must operate fairly and avoid placing disproportionate pressure on particular industries.
More packaging reforms expected in 2027
The latest announcement is part of a wider programme of changes to the UK’s packaging waste system.
The Government plans to launch a call for evidence next month to explore how more businesses can reuse packaging on a larger scale. The aim is to reduce waste and limit reliance on single-use materials, particularly plastics.
In early 2027, PackUK, the organisation responsible for administering the packaging EPR scheme, is also expected to launch a separate call for evidence on the fees manufacturers pay for packaging waste.
That review will examine how the system can better reflect the environmental impact and recyclability of different packaging materials, with the intention of making easier-to-recycle options less expensive.
Separately, the Trade Remedies Authority is continuing two investigations into imports of glass containers. These include an investigation into alleged dumping involving Chinese-origin imports and a separate investigation into subsidies relating to Turkish-origin imports.
A provisional anti-dumping measure on imports from China was introduced on 9 September following a recommendation from the Trade Remedies Authority. Both investigations remain ongoing.
The Government’s latest measures therefore form part of a broader effort to support domestic glass production, improve recycling and reduce some of the costs businesses face when using packaging.
What the changes could mean for hospitality businesses
For pubs, restaurants, bars and other licensed venues, the proposed changes could provide some relief at a time when businesses continue to face pressure from wages, energy bills, rent, food prices and other operating expenses.
The potential savings will vary according to the number and type of drinks containers a business sells, how its products are supplied and how the final EPR arrangements are implemented.
Businesses should also be aware that the removal of fees for qualifying directly supplied glass containers is not scheduled to take effect until April 2027. The proposed reductions in fees for recyclable materials will depend on the outcome of the Government’s consultation.
For now, the announcement signals a change in direction for packaging policy, with greater emphasis on ensuring that businesses using recyclable materials are not unfairly penalised.
What this means for Nigerians and other diaspora business owners in the UK
For Nigerians living in the UK who own or manage pubs, restaurants, bars, takeaway businesses and catering companies, packaging costs are one part of the wider challenge of keeping a hospitality business financially sustainable. Even relatively small charges on individual bottles and containers can add up when a business handles large volumes of drinks and food packaging throughout the year.
The planned changes could be particularly relevant to Nigerian-owned restaurants and hospitality businesses that serve bottled drinks, organise events or operate licensed premises. However, the benefits will depend on the type of packaging they use, how their suppliers distribute products and whether their businesses fall within the arrangements covered by the reforms.
Business owners should review how packaging charges appear on supplier invoices, ask distributors how EPR costs are being applied and keep track of the Government’s consultation before the April 2027 implementation date. Understanding these costs could help businesses identify where savings may be possible and avoid paying charges they should no longer face.
At Chijos News, we recognise that running a business in the UK involves navigating regulations that are not always straightforward, particularly for entrepreneurs building businesses while supporting families and communities across two countries. These packaging reforms are worth watching because the final rules could affect the everyday running costs of diaspora-owned hospitality businesses, not just the UK’s larger pub and restaurant chains.
