Packaging tax could be 'catastrophic' for small food businesses, brands warn

Small food businesses in Britain warn that the government’s new "extended producer responsibility" (EPR) packaging tax could be disastrous, leading to significant price increases and potential closures. The Food and Drink Federation estimates compliance costs could reach £1.4 billion in the first year. Founders like Nadine Maggi of Sweet Freedom and Stu Macdonald of Manilife express concerns that this levy will exacerbate their challenging financial situations, with many SMEs feeling unprepared and arguing that the changes were poorly communicated, jeopardizing their futures.

For Nadine Maggi, founder of Sweet Freedom, the new charge is the final straw in what she describes as the toughest trading environment she has seen in 15 years.

Stu Macdonald, founder of peanut butter brand Manilife, who is leading a campaign for a rethink, said the EPR could be 'existential' for many smaller brands.

Read at Business Matters