New tax on plastic... but no sign of latte levy

A NEW plastic tax will be brought in to encourage recycling, the Chancellor announced – but there will be no ‘latte levy’ to tackle disposable plastic cups.

Philip Hammond said he would not impose a charge on the non-recyclable coffee cups which end up in our oceans, despite widespread public support for the move.

The news sparked anger from MPs and environmental campaigners, who accused him of breaking his promise to crack down on single-use plastics.

Mr Hammond pledged to introduce a tax on companies that manufacture or import so-called ‘virgin’ plastic with less than 30 per cent recycled content from April 2022.

He said this would encourage food and drink companies to reduce their dependence on plastics which are difficult or impossible to recycle, such as black food trays and plastic straws.

Ministers have made tackling plastic pollution a priority following a Mail campaign which resulted in a charge for plastic bags and cut usage by nearly 90 per cent.

But the Treasury refused to introduce a similar approach for disposable plastic vessels, which includes coffee and water cups. Around 2.5 billion single-use coffee cups are used in Britain each year. Most end up in landfill, as the plastic-coated paper cups cannot be recycled.

In January, MPs on the environmental audit committee called for 25p to be charged on top of the price of all hot drinks bought in single-use cups.

Yesterday Labour MP Mary Creagh, chair of the committee, said: ‘ It is a year since the Chancellor stood at the despatch box and promised to introduce a single-use plastics tax to turn back the tide of plastic polluting our environment.

‘After the largest ever response to any Treasury consultation he has failed to keep his promise to the British people.

‘There was nothing green about this budget. No latte levy, no tax on bad plastics for another four years. He is kicking the plastic bottle down the road.’

She pointed out that there had been more than 160,000 responses to the Treasury consultation on single-use plastics.

Liberal Democrat MP Alistair Carmichael said: ‘It is bitterly disappointing that the Chancellor has abandoned the Government’s commitment to introduce a levy on plastic cups.

‘It proves the Tories are full of hot air and no credible action. It also proves what I have said all along, that headlines are more important to them than the environment.’

Green Party co-leader Caroline Lucas tweeted: ‘This is the most nature-depleted Budget in decades. His biggest announcement on the environment was abandoning the latte levy, and with it the pretence of caring about our natural world.’

Julian Kirby of Friends of the Earth said: ‘It’s astonishing that the Chancellor has gone cold on a latte levy, just when we needed him to turn up the heat on plastic polluters. A tax on virgin plastic packaging would be a welcome step, but if we’re going to stem the huge tide of plastic waste pouring into UK waterways every year, far bolder action is needed.’

Hugo Tagholm, of Surfers Against Sewage, said: ‘This is only a start and campaigners must keep up the pressure for more ambitious legislation if we are to tackle the true scale of plastic pollution in our oceans.

‘Voluntary industry measures will never be enough. We need strong legislation to drive change on plastic pollution.’

But Rupert Haworth, market- ing director at Recycling Technologies, said the move would encourage recycling.

He added: ‘This should stimulate new investment in plastic recycling innovation and capacity here in the UK and provide recycled plastic feedstock to the industry.’

Announcing the pledges yesterday, Mr Hammond said he wanted Britain to be a ‘world leader’ on the issue, adding that plastic is ‘deadly to our wildlife and oceans’. He said he had looked carefully at the case for introducing a levy on the production of disposable plastic cups.

But, he told the Commons: ‘I have concluded that a tax in isolation would not at this point deliver a decisive shift from disposable to reusable cups across all beverage types.’

He pledged to monitor coffee chains, a number of which have introduced their own discounts on reusable plastic cups, and said he would return to the issue if ‘sufficient progress’ is not made.

The packaging producer responsibility scheme will also be reviewed by Environment Secretary Michael Gove, he said.

Announcing the tax on packaging containing less than 30 per cent recycled plastic, he said it would ‘transform the economics of sustainable packaging’.

The Treasury added later: ‘The tax will provide a clear economic incentive for businesses to use recycled material in the production of packaging which in turn will create greater demand for this material.’

‘He’s kicking bottle down the road’