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‘Grocery Tax’ to Hike Britons’ Shopping Bills by £56 in Labour Net Zero ‘Inflation Boost’

by Richard Eldred
22 December 2024 3:00 PM

A new “grocery tax” designed to achieve the Government’s Net Zero targets will push up household shopping bills by up to £1.4 billion a year. GB News has more.

The green tax will add as much as £56 to annual household shopping bills, according to Government calculations.

The scheme, which charges retailers and manufacturers based on their packaging materials usage, has been quietly passed into legislation as part of the U.K.’s waste reduction and Net Zero strategy. Critics warn the measure will increase food costs for families while creating additional bureaucracy for businesses.

Under the Extended Producer Responsibility (EPR) scheme, which comes into legal force on January 1st, 2025, businesses will face charges for packaging waste collection and disposal.

The system, originally devised by Michael Gove during his tenure as Environment Secretary, was previously put on hold following opposition from Conservative MPs and retailers. The first charges will be implemented in autumn 2025, shifting the cost burden from local authorities to manufacturers and retailers.

Despite the change in funding responsibility from council tax to businesses, there are no indications that councils will reduce resident taxes. According to Government forecasts, the scheme will increase household bills by £28 annually in a “low scenario”.

In the Government’s “central scenario”, costs will rise by £48 per year, while a “high scenario” could see increases of up to £56 annually. The British Retail Consortium believes Labour’s £1.4 billion cost estimate is too low, suggesting the true cost to retailers will be closer to £2 billion.

The Government expects 85% of costs will be passed on to consumers in a “central scenario”, rising to 100% in a “high scenario”. Lord McKinlay, chair of the Net Zero Scrutiny Committee, criticised the “rapidly introduced, yet little noticed grocery tax legislation”.

“It heaps more than a billion pounds of new and unnecessary costs on consumers, but as ever when Government departments estimate implementation costs, these are often hopelessly underplayed,” the Tory peer said.

He added: “It needs to be called out for what it is: yet another Net Zero tax which adds to consumer cost inflation, and further adds to the administrative burden on U.K. businesses. Another growth-destroying measure by an inept government.”

Worth reading in full.

Tags: Cost of LivingInflationLabour GovernmentNet ZeroTaxes

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27 Comments
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transmissionofflame
transmissionofflame
5 months ago

Michael Gove – Mr Scotch Egg. Something of the night about that bloke.

7
0
ComradeSvelte
ComradeSvelte
5 months ago
Reply to  transmissionofflame

I always think of something slightly green and yellow hacked up and spat out when I hear the name Gove….

Last edited 5 months ago by ComradeSvelte
7
0
transmissionofflame
transmissionofflame
5 months ago
Reply to  ComradeSvelte

Shortly before masks were made mandatory he said they wouldn’t be

7
0
Ron Smith
Ron Smith
5 months ago
Reply to  transmissionofflame

And Zahawi said vaccine passports are….”not the British way”, before introducing them in Nightclubs. He also told a woman concerned about an adverse reaction she had to “get the booster”….He is an utter scumbag!

12
0
Smudger
Smudger
5 months ago
Reply to  Ron Smith

He is is good company.

1
0
Smudger
Smudger
5 months ago
Reply to  ComradeSvelte

It’s called The Spectator.

1
0
JXB
JXB
5 months ago

Add to the carbon tax which is applied to businesses and passed on to consumers.

These taxes are Pigou Taxes designed to change behaviour.

Use less of everything.

8
0
transmissionofflame
transmissionofflame
5 months ago
Reply to  JXB

I tend to think that taxation should be limited to a series of mechanisms that enable the cost of providing non-excludable services that make sense for a state to provide – defending our borders for instance (lol). I don’t know when they started to be a social control mechanism. Sadly that now seems to be accepted as legitimate.

6
0
Gezza England
Gezza England
5 months ago
Reply to  transmissionofflame

It won’t change until we have a government that forces people to take responsibility for their lives and not expect the government to mollycoddle them.

5
0
transmissionofflame
transmissionofflame
5 months ago
Reply to  Gezza England

I hope things will swing back to that, just maybe not in our lifetimes.

I think life is ultimately better for people if they try to be as self sufficient as possible.

5
0
JohnK
JohnK
5 months ago

Whoever wrote the headline must be guessing. In the real world, it’s likely that the trade will change things to mitigate the extra costs in various ways, ranging from smaller containers (inflationary for the consumers), or at the other end of the scale, larger ones might be more efficient (higher off the shelf costs, but lower unit prices for the customer). If they’re clever they might take the opportunity to increase the profit margin at the same time across the store. After all, selling a kilo of carrots in a plastic bag for 10p at Morrisons the otter day wasn’t a charity donation!

2
-1
transmissionofflame
transmissionofflame
5 months ago
Reply to  JohnK

However it’s handled it won’t be good for consumers or for the economy. If firms absorb the cost it will affect their profits which will hurt people who have shares in those firms, a lot of those shares will be owned by pension funds, or firms will employ fewer people or pay them less or cut corners in some other way. That’s socialism for you!

6
0
huxleypiggles
huxleypiggles
5 months ago
Reply to  transmissionofflame

This tax is not intended to be good for consumers or the economy which is precisely why Kneel is introducing it. Furthermore, as this is being introduced at the start of the year I suspect it is in effect a marker outlaying what is to come through the rest of the year. Kneel and his bosses are not messing about, they fully intend to bankrupt the country in 2025. People need to wake up. This government is openly committing treason against the population and they will not give up until they are made to. Sadly, I do not believe peaceful discussion will suffice, we are long past that point. It is us or them.

11
0
Ron Smith
Ron Smith
5 months ago
Reply to  transmissionofflame

But they want to get us to Stakeholder Capitalism by 2030, part (or most) of the Great Reset. When most people who think of the Reset (those that don’t think it’s all a conspiracy) they think Agenda 2030 on steroids. Green everything, but forget the Stakeholder aspect.

3
0
Ron Smith
Ron Smith
5 months ago
Reply to  transmissionofflame

Vobes did a good interview in Stakeholder Capitalism
https://www.youtube.com/watch?v=QspdOcEwa3s

1
0
transmissionofflame
transmissionofflame
5 months ago
Reply to  Ron Smith

Sadly most people have bought into these ideas. It’s quite common for people to think of “evil” and “capitalist” in the same sentence.

3
0
Jack the dog
Jack the dog
5 months ago
Reply to  JohnK

However it works out it is economically illiterate and morally reprehensible.

5
0
Cotfordtags
Cotfordtags
5 months ago

I used to get shopping bags for free, which would be used as rubbish bags. Then, when they introduced the bag tax, I happily paid because I found the bags useful, but they decided my bags were killing sea life (even though I live in the middle of the country), so they stopped selling them and now I have to pay for bin liners, so still throw away a plastic bag, only now the money goes to the supermarket rather than charity, as it did for the plastic bag charge. Now I will have to put my raw meat and unwrapped fruit and vegetables into the supermarket trolley, where, no doubt, some delightful child will have been stood with their grimy shoes prior to me using the trolley. The food will have a much shorter shelf life, creating more waste. Surely public health and waste reduction must take priority over this lunacy.

7
0
huxleypiggles
huxleypiggles
5 months ago
Reply to  Cotfordtags

Public Health is not a consideration of Kneel and Co, well except in as much as it can be ruined – physical and mental.

4
0
Gezza England
Gezza England
5 months ago
Reply to  huxleypiggles

The sooner a householder dies, the sooner another immigrant scumbag can be given a home.

5
0
Cotfordtags
Cotfordtags
5 months ago

Jim Dale on TV now sat under an air conditioning unit. Wanker

6
0
Cotfordtags
Cotfordtags
5 months ago
Reply to  Cotfordtags

Oh and if that electrical item with an opening and closing flap underneath it that looks like every air conditioning unit in every office I have worked in, is not by some chance an air conditioning unit but is some clever heat exchanger and energy saver, I humbly apologise for maligning Mr Dale and reducing any high esteem that people may have held him in before my comment.

2
0
Gezza England
Gezza England
5 months ago
Reply to  Cotfordtags

Glad I am watching the football and not that ignorant twat, Dim Dale.

3
0
Gezza England
Gezza England
5 months ago

And there was Rachel from Accounts bleating nonsense about her actions having pushed up inflation and along comes something else to keep it rising steadily. It may seem wrong but I am now hoping to see the UK in recession to cause the Student Union government to melt down.

4
0
Jabby Mcstiff
Jabby Mcstiff
5 months ago

These inflationary pressures don’t just force up prices but they lead to food being produced with cheaper and cheaper costs and this is more serious in some ways. For one thing it is hidden and it is also likely to lead to food becoming less healthy and nutritious. And the quality wasn’t too good to begin with. Maybe they won’t have four people fighting over a bag of flour. They will just adulterate and cheapen it to such an extent that all four plebs still feel satisfied even as their life essence is being drained away.

6
0
Ron Smith
Ron Smith
5 months ago
Reply to  Jabby Mcstiff

Old films will remind them how far their society has fallen, unless they ban them too.

1
0
RTSC
RTSC
5 months ago

The Uni-Party: deliberately making poor people even poorer ….. at the behest of, and to suit, the mega-wealthy.

3
0

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