'Pint prices will likely increase' warns MP over new packaging rules that risk 'delivering a crippling blow' to businesses

North Shropshire MP Helen Morgan said "already struggling" companies face "huge" additional costs due to the Extended Producer Responsibility (EPR) scheme.

EPR was introduced under the previous government and means businesses will be financially obliged to cover the costs of the disposal of their packaging waste.

The scheme is aimed at encouraging producers to design packaging that is more easily recyclable with companies taking the full cost of managing their packaging, once it becomes waste.

Mrs Morgan said drinks producers are "already paying high business rate costs", and that the additional cost will be passed onto hospitality businesses including pubs, brewers and wine merchants who will "in effect pay twice" to dispose of the waste.

The Liberal Democrat MP, who is a former accountant, said this will have a "serious" impact on businesses such as pubs with "small profit margins", and warned that the price of a pint would "likely increase" with costs passed onto consumers.

The exact cost of the levy remains unknown and the North Shropshire MP added that this means businesses cannot plan their upcoming budgets.

Speaking in Parliament on May 14, Mrs Morgan urged Minister Mary Creagh to reconsider the levy's implementation to "protect" high streets, local producers and consumers.

The North Shropshire MP said: "This policy risks delivering a crippling blow to pubs, breweries, and wine merchants who are already being whacked by national insurance rises and bloated business rates.

"The Government must listen to common sense, rethink the Extended Producer Responsibility scheme and provide local businesses with the certainty they need.

"Otherwise hospitality firms hoping to grow could instead be forced to increase prices and lay off staff."