Retailers call for rethink on net zero ‘grocery tax’ to prevent price rises

JESSICA FRANK-KEYES

TOP RETAILERS have urged the government to rethink plans for green levies to fund the recycling of food packaging due to costs. The British Retail Consortium (BRC) has warned the ‘net zero grocery tax’ could push up shopping bills by £4bn a year or £140 a year per household, in a letter to the

Sunday Telegraph.

BRC chief executive Helen Dickinson said: “A raft of new regulations will burden retailers – and ultimately consumers – with higher costs.

The BRC’s call was echoed by Tories including Jacob Rees-Mogg, who said: “If this is our approach to net zero, our voters will punish us harshly”.

It comes as polling reveals two in three voters believe Brexit has played a role in soaring food prices and inflation. Researchers found 62 per cent of Brits think Brexit has negatively affected the cost of groceries, according to the i newspaper and BMG Research. Separately the Food and Drink Federation linked Brexit factors to increased prices, citing “friction at the UK’s borders and persistent labour shortages”.