The British Beer and Pub Association has warned that the government’s EPR recycling measures could cost the beer and pub sector an additional £154m, stating the measure is “chaotic and damaging.”

Reforms to Extended Producer Responsibility will see retailers and producers charged per tonne of packaging used in order to reduce recycling costs paid by council, eating into the sector’s already “paper-thin” profits.

“Unsustainable EPR fees being introduced by the Government are set to cost the beer and pub sector an extra £154m,” said a BBPA spokesperson. “We’re calling on the Government to review its chaotic and damaging implementation.”

“These fees will wipe out paper-thin profits with brewers currently only making 2 to 3p on every bottle.”

The BBPA revealed that the packaging tax would add 5p per 330ml bottle, and 7p per 500ml bottle, with CEO Emma McClarkin saying the fees represent “a massive blow to brewers, pubs, and punters.”

“UK brewers make an average of just 2p profit per bottle of beer, so they’ll have no choice but to pass on extra painful costs to the consumer or possibly end up being forced to leave the market entirely.”

A spokesperson for Defra said “we continue to work closely with businesses on this programme.”