// Retailers are urging PM Rishi Sunak to overhaul the government’s waste strategy over fears it will hike prices further for consumers, Sky News reports
// In a draft letter from the BRC, retailers outline concerns the Deposit Return Scheme will cost households an additional £50 and the industry £2bn
The UK’s biggest retailers are set to warn prime minister Rishi Sunak that the government’s waste strategy will further hike prices for consumers as inflationary pressures exacerbate the cost-of-living crisis.
In a draft letter from the British Retail Consortium, obtained by Sky News, the group of retailers outline industry concerns about the costs associated with the proposed new packaging and bottle recycling measures due to come into force in 2024.
The letter, which is expected to be sent next week, calls on Sunak to intervene with the Department of the Environment, Food and Rural Affairs (DEFRA) to redesign the Deposit Return Scheme which requires retailers to offer collection points for bottles as well as administer the scheme.
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It calls on the PM to adopt “a more pragmatic approach” to the government’s waste strategy.
The current policy proposal will add to inflationary pressures and “fail to deliver a fit for purpose scheme” as well as “significantly increase the costs of packaging”, the letter said.
It warned that it would cost every UK household an additional £50 and said the scheme in England would add another £2bn to industry costs.
“Whilst retailers and Government are focused on reducing inflation for consumers, and with the backdrop of huge increases from EPR charges, we do not understand why Defra is continuing to pursue the DRS scheme at this time,” the draft said.
“And when it is implemented there must be alignment and interoperability of DRS schemes across the UK, including on things like labelling requirements, as a fragmented approach puts even higher costs onto businesses, and leads to higher prices, reduced choice and confusion for consumers.”
“We would also ask you to raise our concerns on the design of DRS with Defra, where we have struggled to convince ministers of the need for pragmatic implementation that works with the businesses which will deliver it.”
BRC chief executive Helen Dickinson said: “The retail industry is writing to the Prime Minister to express concerns over the implementation and operation of a Deposit Return Scheme and Extended Producer Responsibility.
“These two schemes will add around £4 billion in costs to retailers, increasing prices for consumers at a time when the cost of living is weighing heavily on households across the UK.
“Furthermore, the current proposals are unlikely to deliver meaningful improvement in recycling and waste disposal. Retailers support the aim of these schemes, but it’s vital they are implemented in such a way that works for consumers, and delivers meaningful benefit to the environment.”
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