M&S faced with £40m recycling-tax charge
M&S is facing a £40m recycling-tax bill, in addition to the £120m in costs it is already faced with following tax changes set out in the Autumn Budget.
According to two sources familiar with the costs, M&S faces the estimated £40m charge as a result of packaging levies that will come into force from October, the Financial Times reported.
The changes are designed to limit the amount of unsustainable packaging made by UK retailers.
According to the British Retail Consortium (BRC), the levy could make a total of £2bn per year from the industry.
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Retailers wrote to Chancellor Rachel Reeves in November, calling for the implementation of the packaging levies to be postponed. The previous 2024 roll out date has already been delayed once before.
The letter said: “The sheer scale of new costs and the speed with which they occur create a cumulative burden that will make job losses inevitable and higher prices a certainty.”
M&S declined to comment on the matter.
The news comes after UK companies warned in September that the upcoming environmental tax, known as the extended producer responsibility (EPR) scheme, which looks to move the cost of household recycling from councils onto the companies using the packaging, will raise prices of many everyday items.
Some products expected to be pushed up in price include soft drinks, beer, and small kitchenware appliances such as toasters and kettles.
2 Comments. Leave new
They could always reduce the amount of unsustainable packaging …..
The recent – last 10 years – single example of wilful replacing perfectly functional paper labels/sleeves on much milk, soda, beer and jars and confectionery from foil/paper to plastic film packaging is an example of ‘Do what I say, not what I do”.
M&S already charge suppliers a packaging cost for anything used to transport (including recyclable cardboard packaging). Surely this should be used to cover to these taxes?