FPA welcomes decision not to introduce ‘Latte Levy’

From: Packaging News

The Foodservice Packaging Association (FPA) has welcomed the Chancellor’s decision not to introduce a tax on coffee cups.

Martin Kersh, the FPA executive director, claimed this decision was a recognition by the government of the collaboration across the supply chain that has resulted in “such excellent progress in enabling coffee cups to be recycled”.

Analysts have however pointed out that the progress made is mostly limited to an improved recycling capacity – such as DS Smith’s Kemsley site announcing it had mastered the technique to successfully separate the plastic lining from paper in coffee cups.

The packaging giant said that while the site could recycle up to the 2.5bn cups discarded by British coffee consumers annually, the heart of the issue is collections and the value/income collectors can receive to make it economical for them to deliver coffee cup waste to the plant.

There are some initiatives such as the NextGen Cup Challenge featuring funding from Starbucks, which is trying to develop a fully recyclable and compostable coffee cup.

There are also a couple of cups on the market that claim to be fully recyclable in standard recycling plants – such as the Frugal Cup from Frugalpac and Smart Planet Technologies’ reCUP.

The reCUP technology has been or is due to be rolled out at Taylor St Barista’s roaster coffee shops, Linstol (a US distributor for the airline cabin industry), Lenzing Papier, and Smart Planet said it was in talks with various brands in the USA.

Kersh said the UK now has recycling capacity for all its cups and ‘progress is being made in increasing collection’.

“We must now keep our foot pressed firmly on the accelerator and encourage more retailers to accept used cups from any source, not only the chains but the independent sector which in total out numbers the high street chains as well as boosting all the other schemes to increase collection which is resulting in more opportunities to dispose of cups throughout the UK.”

He said the collaboration led by the Paper Cup Recovery and Recycling Group sets the benchmark for businesses working together to achieve environmental improvement.

What has been apparent to all is that a tax or levy does not result in a major increase in the number of individuals using their own cups to buy coffee.

“We welcome the consultation into a tax on plastic packaging containing less than 30% recycled content and are pleased this will form part of the Extended Producer Responsibility / Packaging Recovery Note reform consultation. This joined up approach will show that PRN reform is by far the most effective means of achieving an increase in recycled content and for developing the UK recycling infrastructure so helping to reduce waste exports. The consultation must recognise our critical food material contact regulations which must be enshrined in UK law following Brexit. The Treasury should note only a small number of recycled plastics are suitable for food use as well as in ovens and microwaves.”

Kersh said he had been reassured by The Treasury that the tax is not intended as a revenue earner but will be invested in recycling and litter prevention.

“We also welcome the additional £20m for plastics R&D (on top of the 25 Year Environmental Plan pledge of £20m), £10m to boost recycling and litter prevention, £10m to the Environment Agency to clear abandoned waste sites (though we fear much more is needed) and £15m to distribute surplus food.

“All in all we feel the Treasury has listened very carefully to the points we have raised in our many meetings and we look forward to the dialogue continuing.”

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