Glass Tax Relief Could Save UK Pubs Up to £870 a Year
British pubs facing rising bills could get some breathing room from new glass tax relief in April 2027. The UK government will remove packaging fees on glass drinks containers that producers sell directly to licensed hospitality venues. It says a pub selling 10,000 bottles of beer and 3,700 bottles of wine could save up to £870 a year. Read the announcement.
The change targets a problem that has frustrated the trade. A venue can pay to have its glass collected while also bearing packaging costs passed on by its drinks supplier. Cutting that overlap could ease one of the many expenses local pubs and restaurants face.
How Glass Tax Relief Will Work from April 2027
First, the change applies to a packaging scheme called Extended Producer Responsibility, or EPR. Under that scheme, eligible producers pay fees that help cover the cost of managing certain types of packaging waste. Those costs can affect hospitality businesses when suppliers reflect them in the prices they charge for drinks. Read the rules on producer disposal fees.
From April 2027, glass drinks containers sold directly by producers to pubs, restaurants and other licensed hospitality venues will no longer incur those fees. For a pub that buys bottled beer straight from a brewer, the change could reduce the packaging costs built into its order. The pub will still need to arrange and pay for its own waste collection.
The type of container matters too. Bottled drinks fall within the scope of the announcement when they meet the direct-sale condition. A pub that buys most of its beer in kegs will therefore want to look at its bottled range when working out the effect.
The route a bottle takes to the bar matters. A pub may buy some drinks directly and get the rest from a wholesaler or distributor. The announced change covers direct sales, while the industry is calling for a solution for drinks supplied through intermediaries. That distinction matters for leased and tenanted pubs that buy stock through existing supply arrangements.
How Much Glass Tax Relief Could Save a Pub
The government estimates the change could save up to 6p per beer bottle and 10p per wine bottle. In its example, 10,000 beer bottles account for up to £600 of the potential saving. Another 3,700 wine bottles add up to £370. Together, those amounts bring the estimated annual saving to £870.
Actual savings will depend on how many eligible bottles a venue buys and whether suppliers pass the lower costs on. A pub that mainly serves draught beer may buy fewer glass bottles than the venue in the example. Meanwhile, a restaurant with a busy wine list may have a different mix of eligible purchases and suppliers.
Even a smaller saving could help an independent pub manage its day-to-day costs. For a landlord planning next spring’s budget, supplier invoices are a good place to start. They show how much bottled stock the pub buys and which orders come straight from a producer. That gives the landlord a firmer basis for estimating savings and discussing future prices with suppliers.
How Glass Tax Relief Fits Wider Packaging Changes
The government also plans to consult businesses on how it sets packaging fees. The proposal would make materials that are easier to recycle, such as glass and paper, cheaper under the scheme. Some plastics that are harder to recycle could attract higher charges. The government says fees for the most recyclable packaging could fall by up to 40% per year.
That figure describes a possible change to packaging fees under the wider review. It does not predict how much a pub will save on its bottle orders or recycling bill. PackUK already uses recyclability to help set certain producer disposal fees, and the consultation will shape how future charges work. See how recyclability affects packaging fees.
For brewers and other drinks makers, lower fees could ease the cost of using packaging that recycling services can handle more readily. Fee levels also matter when producers choose bottles, labels and other packaging for new products. In time, clearer pricing could help suppliers weigh those costs when they decide how to package their drinks.
What Pubs Can Expect from Glass Tax Relief
For now, the clearest date for hospitality businesses is April 2027. Pub and restaurant owners can use the months before then to check which drinks they buy directly and which arrive through a distributor. When suppliers issue new price lists, operators can compare those prices with what they currently pay for the same products. That will give them a clearer picture of what the exemption means for their own budgets.
Leased and tenanted pubs may also want to follow any update on indirect supply. Trade representatives have warned that many publicans could see less benefit if the rules leave out bottles they buy through an intermediary. How the government handles those orders will help determine how widely the savings reach across the trade.
The bottle fee change comes as landlords juggle staffing, energy and other running costs. For more on those pressures, see our [coverage of business rates for pubs](/replace-with-published-pub-business-rates-url/).
Finally, the reform gives venues that buy directly from producers a concrete change to plan for. A pub that regularly orders bottled beer or wine could see the benefit across many deliveries over a year. For local businesses that host everything from quiz nights to family gatherings, those smaller savings can add up. The next sign of progress will be what suppliers put on their price lists as April approaches.
Nuwan Wackwella is a digital creator passionate about technology, creativity, and sharing inspiring moments from everyday life.
