Controversial £2bn packaging tax could be scrapped as food inflation looms

The UK government is reviewing a controversial £2bn sustainable packaging tax amid rising food inflation pressures from retailers. The Extended Producer Responsibility (EPR) tax, which requires businesses to cover packaging disposal costs, has faced criticism for potentially increasing household expenses. Retailers, including Tesco and Sainsbury's, are urging the government to reduce tax burdens to help keep food prices down. The Food and Drink Federation warns food inflation could reach 9-10% this year, exacerbated by rising energy and shipping costs due to geopolitical tensions. The government has ruled out scrapping the EPR tax entirely, citing its economic benefits.