A trade body has warned that there is ‘inadequate’ evidence to show that the Scottish Government’s proposed tax on single-use cups will meet the environmental targets of the scheme.
UKHospitality Scotland also said that the proposed additional 25p charge would disproportionately impact lower-income consumers – with a 25p charge on a £1.39 hot drink representing an 18% price increase, compared to 7% when the same charge is applied to a £3.50 beverage.
Pointing to international attempts to introduce a charge on cups, the organisation explained how Portugal abandoned plans for a beverage charge due to competition concerns and recognition of the recyclability of paper cups. Elsewhere, Vancouver repealed a 25% disposable cup after it failed to change consumer behaviour.
The trade body is now calling on the Scottish Government to collaborate with the sector on the existing initiatives in place to reduce the number of single-use cups being used.
Leon Thompson, executive director of UKHospitality Scotland, said, “At a time when Scottish consumers are understandably being more discerning with their disposable income, the prospect of a tax on disposable cups is nonsensical. The ‘latte levy’ would increase the cost of an affordable drink, like a takeaway coffee, and disproportionately hit lower-income customers. We agree with the Scottish Government’s commitment to progressive taxation policies, but this would be the opposite.
“There is an overwhelming amount of evidence and international precedent that sets out why this charge doesn’t work, and the Scottish Government should save itself time and money by abandoning these proposals.
“There is already a number of initiatives to reduce the amount of single-use cups being used and they are successful in nudging consumer behaviour in the right direction. I would urge the Scottish Government to focus its efforts on collaborating with businesses to build on this success, rather than introducing an ineffective tax that will only penalise consumers.”
