Glass industry warns 120,000 jobs at risk as levy drives investment overseas - London Business News

"Britain's glass manufacturing sector has warned that up to 120,000 jobs across its wider supply chain could be at risk, as foreign investors reportedly delay or redirect billions of pounds in planned UK investment amid growing policy and cost pressures. British Glass, a trade body, said the Government's extended producer responsibility scheme— a levy requiring manufacturers to contribute to recycling costs— is already discouraging investment at a critical moment in the industry's transition to lower-carbon production."

"The organisation warned that the policy risks pushing manufacturing capacity overseas, increasing reliance on imported packaging and weakening Britain's industrial base. Nick Kirk, director of British Glass, said the UK must remain competitive in attracting international capital, warning that investor sentiment is shaped by both economic conditions and policy stability. The glass sector contributes more than 2 billion annually to the UK economy and produces up to four million tonnes of glass each year, but remains heavily exposed to foreign ownership, with five of the six major packaging manufacturers controlled overseas."

"Under the extended producer responsibility framework, producers of glass bottles and jars are required to fund a greater share of local authority recycling costs, in line with the polluter pays principle. Critics have branded the measure a stealth tax, warning it could add around 10p to 12p per packaged item. Industry figures argue that glass is being placed at a disadvantage compared with alternative materials such as plastic and aluminium, which they say do not face equivalent financial burdens despite environmental concerns over recyclability and emissions."

"Manufacturers say the timing is particularly damaging, with several UK plants considering multi-million-pound upgrades to modernise facilities and cut carbon emissions. Around 20 sites are reportedly weighing investment plans of up to 100 million each, many of which could now be"

The UK glass manufacturing sector warns that policy and cost pressures are causing foreign investors to delay or redirect billions of pounds of planned investment. British Glass says the extended producer responsibility scheme, which requires producers to fund a greater share of local authority recycling costs, is discouraging investment during a transition to lower-carbon production. The policy could push manufacturing capacity overseas, increase reliance on imported packaging, and weaken the UK industrial base. The sector contributes more than £2 billion annually and produces up to four million tonnes of glass each year, while many major packaging manufacturers are controlled overseas. Critics call the levy a stealth tax, potentially adding 10p to 12p per packaged item, and argue glass faces disadvantages versus plastic and aluminium. Several UK plants are considering multi-million-pound upgrades that may be jeopardized.

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