Co-op bags

Supermarkets hit back over government's bag tax threat

Government told to back off or risk losing supermarket's support on other voluntary environmental initiatives

Written by Sarah Griffiths

Relations between the government and the UK's leading supermarkets are in danger of deteriorating in the wake of the government's threat to impose a tax on plastic bags.

According to reports in The Guardian newspaper, environment secretary Hilary Benn this week met with the bosses of a number of the UK's leading supermarkets who expressed concern that the threat of a tax on plastic bags would undermine existing voluntary agreement to cut bag use.

Advertisement

Marks & Spencer's Sir Stuart Rose, Tesco's Sir Terry Leahy, Andy Bond of Asda and Justin King of Sainsbury’s joined bosses from Morrissons, Somerfield and the Co-op for the discussion, which one source said had turned into a "very heated debate".

Both Marks & Spencer and Sainsbury's confirmed they were represented at the meeting, but declined to comment on the nature of the discussion. A spokeswoman for Tesco also confirmed the company was represented, but insisted that it covered "a wide range of issues, not just bags".

However, according to reports the supermarkets urged the government to ditch its threat to impose a tax on single-use carrier bags, accusing it of pandering to a Daily Mail campaign for bag use to be curbed.

Chancellor Alistair Darling announced plans in the budget to impose a charge on plastic bags if the supermarkets failed to make good on voluntary targets to cut the "environmental impact" of plastic bags by 25 per cent by the end of the year.

The retailers are understood to have told Benn that the government risked losing their co-operation if it did impose a levy and warned that they would reconsider signing up to future goodwill agreements.

"There just won't be any voluntary agreements in the future if they move the goalposts halfway through," one chief executive reportedly claimed.

However, there are signs that the government's recent focus on plastic bags is paying off. Marks & Spencer has already started charging for food carrier bags, while Tesco said its usage is down 40 per cent, in part as the result of its offering Clubcard points to shoppers who decline to use the free bags on offer.

A spokeswoman for Tesco said that the success of the scheme highlighted the extent to which voluntary deals can work.

"If other retailers can achieve cuts in bag use similar to ours, then the government will see the scale of change," she observed.

Comments

White papers

Related jobs

More Accounting jobs

Spotlight

Andrew Higginson, Tesco Personal Finance

Profile: Andrew Higginson, CEO of Tesco Personal Finance

He’s spent more than a decade at the top of...

Top 30 Accounting Networks and Associations 2008

The race to become the biggest firm on the planet...

Barack Obama Accountancy Age cover October 2008

Obama: asset or liability?

What an Obama presidency could mean for you

Find your next job

Find your next job
Salary Checker

Job of the week

More finance jobs

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Your next job

Have your say

Will proposed tax cuts help to stimulate the economy?
Yes
No

Advertisement

Search white papers

Search white papers

Advertisement