Large retailers in England to charge for plastic bags from October 2015 or face fines of up to £5,000.
The new regulations apply to businesses with 250 or more full-time equivalent employees, who will be required to charge for bags. Annual compliance reports to the Department for the Environment, Food and Rural Affairs (DEFRA).
Smaller businesses will not have to charge, but will be encouraged to do so voluntarily. Once retailers have deducted reasonable costs, proceeds are expected to be donated to good causes (as is already the case with similar schemes in Scotland, Northern Ireland and Wales).
New legislation
Retail expert Andrea McIlroy-Rose from Pinsent Masons, the law firm behind Out-Law.com, said that the implementation of a plastic bag charge in England was “always inevitable, given the success of the charges brought into the rest of the UK during the course of the last few years”.
“In this case, what the government has done is refined the legislation for England so that it applies only to larger businesses and, in time, I believe that the rules will be rationalised across the UK,” she said. “The charges generate a lot of revenue, are easier to administer than was originally thought and are good for the environment, so really they will face no real opposition.”
The war on plastic
The new charge is being introduced as a “targeted, proportionate” means of reducing the number of plastic bags used in England. In 2013, supermarkets gave out over eight billion single-use carrier bags across the UK. That’s nearly 130 bags per person.
Unlike in Scotland, Northern Ireland and Wales, English retailers will not have to charge for paper bags. There is not currently an exemption for ‘super-biodegradable’ plastic bags. However the UK government may consider it to encourage the development of a more environmentally-friendly bag at a later date.
Retailers’ responsibilities
Retailers will be required to record:
- the number of bags supplied
- the gross and net proceeds of the charge
- any VAT in the gross proceeds
- what they did with the gross proceeds and
- any deductible reasonable costs for any given reporting year
They must submit this information to DEFRA by 31 May following the end of the reporting year.
Local authorities will enforce the regulations. Inspectors will be able to visit stores at reasonable times and make test purchases. They may question staff and demand relevant documentation if they believe a breach of the regulations has taken place.
Retailers may be issued with fines if they do not charge, keep or supply records or mislead on how they are complying with the law. They may also be required to publicise that they have broken the law.
Wales, Scotland & Northern Ireland lead the way
Wales introduced a minimum 5p charge on single-use carrier bags, including paper bags, in 2011. This charge applies to all organisations including small businesses, and the proceeds for the charge are given to good causes under a voluntary agreement with retailers. A similar charge was introduced in Scotland in October 2014. In Northern Ireland, a 5p charge was introduced on single-use bags made from plastic, paper, plant-based materials or natural starch in April 2013. The proceeds from this charge go to Northern Ireland’s Department of the Environment which distributes them to local environmental projects.
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