Shoppers in Wales, Scotland and Northern Ireland have been paying 5p for any carrier bag that they use for their shopping for some time, and from 5th October we in England have joined them. The stated aim of the policy is to encourage people to re-use bags and so reduce the amount of waste going to landfill. So, are the rules now consistent throughout the UK?
The answer, you will not be surprised, is a resounding No. There are very significant differences in the details of the rules that are applied in each country.
For instance, in England the charge only applies to “single use” plastic bags of 70 microns thickness or less, whereas in the other countries the charge applies to all single use carrier bags, including those made of paper and, in Scotland, even bags made from hessian. Meanwhile, in Wales bags made of hessian, cloth, jute and cotton are exempt from the charge.
Another major difference is that the charge applies to all relevant bags in Wales, Scotland and Northern Ireland. However, in England the charge only applies to bags supplied by retailers with 250 full time employees. At the start of each tax year, every retailer must record the hours worked by all employees, including part-time and seasonal workers, add them up, and then divide this total by the number of hours worked by a full-time worker. If the answer is 250 or more then the retailer must impose the charge for the whole of that tax year. So much for the government’s promise to reduce red-tape.
There are certain exempt goods, and the charge does not have to be charged on bags carrying those goods, but only if the contents consist only of those exempt goods and you do not place any nonexempt goods in them. The list of what goods are exempt varies, of course, between countries. What a farce! The responsibility for enforcing these ridiculously complex rules rests with the local authorities who can charge varying penalties, ranging from £100 to £20,000 for non-compliance.
Of course, you can excuse the complexity as all money goes to charity, doesn’t it? Well, actually – No! In Northern Ireland the whole 5p is payable to the Department of Environment. In England, Wales and Scotland, of every 5p charge made VAT of 83p goes to the taxman. Whilst retailers are being encouraged to donate the remainder to charity there is no obligation on them to do so, and they may choose to keep the proceeds instead.
Published in Warrington Worldwide November 2015.