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flag UK's new packaging tax likely raises food prices by 0.5%, with most costs passed to consumers.

flag A new UK packaging tax under an extended producer responsibility scheme is expected to raise consumer prices, with over 80% of costs likely passed on to households, adding 0.5% to food inflation. flag Retailers face increased financial and administrative burdens, while 85% plan to boost sustainable packaging and reduce volume. flag The British Retail Consortium urges the government to ring-fence tax revenues for recycling infrastructure, but some manufacturers argue the policy unfairly penalizes environmentally friendly materials like glass, potentially raising bottle prices by up to 11p. flag Local councils support the polluter-pays principle but oppose restrictions on fund use, fearing loss of local control over waste services.

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