Construction-material suppliers have warned that the “wrongful” structure of extended producer responsibility (EPR) rules will add to the cost of building homes.
The Builders Merchants Federation (BMF) urged chancellor Rachel Reeves to review the requirement for “intermediaries” to pay “hefty” fees through the latest packaging tax.
Under the EPR scheme, in-scope producers are responsible for funding the management of product-containment material after it has been used. The first invoices are expected this month.
But the BMF bemoaned the “inequity” of packaging used by “merchants and distributors” being included in the scheme by default.
“The overwhelming majority of materials sold by BMF members are used only by trade customers, yet they are now obliged to pay hefty EPR fees,” it said.
“The government’s wrongful assumptions about the building material supply chain will have an inflationary effect on other policies, notably housebuilding, and require urgent review.”
The plea came in a letter to Reeves ahead of next month’s Budget, which warned that “fresh impetus” was required to meet the government’s target to build 1.5m homes this parliament.
It emerged last month that iconic retailer John Lewis Partnership had put aside £29m for EPR fees in the six months to July.
