British glass industry warns 120,000 jobs at risk over Ed Miliband's Net Zero levies

Britain’s glass manufacturing industry has warned that around 120,000 jobs across its supply chain could be placed at risk as foreign investors reportedly hold back billions of pounds in planned spending.

Trade body British Glass said the Government’s extended producer responsibility levy is driving investment overseas at a critical moment for the sector.

The organisation warned the policy risks undermining domestic manufacturing while increasing reliance on cheaper imports from abroad.

Nick Kirk, director of British Glass, said the UK needed to remain attractive to international investors both economically and politically.

He said: “As an economy but also from a policy point of view.”

Britain’s glass sector contributes more than £2billion annually to the economy and produces between 3.5 million and four million tonnes of glass every year.

The industry is particularly exposed to overseas investment decisions because five of the six main packaging manufacturers operating in Britain are foreign-owned.

Under the extended producer responsibility scheme, manufacturers of glass bottles and jars must contribute towards local authority recycling costs under a “polluter pays” system.

Critics have described the levy as a “stealth tax” that could increase the price of products sold in glass packaging by between 10p and 12p.

British Glass argues the policy places glass at a competitive disadvantage compared with plastic and aluminium packaging.

The trade body said plastic packaging and metal cans do not face equivalent charges despite claims those materials are more environmentally damaging and harder to recycle.

Industry figures warned the timing is particularly damaging as manufacturers had been considering major investments to modernise UK facilities and reduce carbon emissions.

Around 20 manufacturing sites across Britain were reportedly evaluating investment plans worth up to £100million per facility.

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At the same time, British manufacturers are facing increasing competition from lower-cost imports from countries including Turkey and China.

An industry briefing paper warned the levy “only encourages food and beverage companies to look abroad to import cheaper, lower quality glass, damaging British manufacturers and producing greater carbon emissions”.

Glass manufacturers are also grappling with higher energy costs than many overseas competitors, placing additional pressure on profitability.

British Glass said the combination of rising operating costs, overseas competition and new levies risks weakening the sector further during a period of major industrial transition.

The trade body argued the current policy framework undermines domestic production while increasing emissions through longer international supply chains.

Concerns over the sector’s future have intensified following industrial action at Encirc, the Cheshire-based glass manufacturer owned by Spanish company Vidrala.

Workers at the company’s plant near Runcorn have staged strikes in response to redundancies and wider cost-cutting measures.

Unite, the trade union representing employees at the site, has criticised the cuts and pointed to Vidrala’s profitability.

The dispute has also raised concerns about possible supply disruption affecting several major drinks brands.

Encirc supplies glass packaging for products including Jacob’s Creek wine, Budweiser and Coors bottled beers, Jameson whiskey and Baileys liqueur.

Industry figures said the tensions at Encirc reflected broader pressures facing the sector as manufacturers attempt to balance investment demands, rising costs and workforce concerns.

British Glass warned that without changes to Government policy, investment in UK production facilities could increasingly shift overseas.