The SNP’s tax on plastic bags will cost businesses, consumers and the public purse millions of pounds, a report has revealed.
An official study into the cost of the 5p levy has revealed huge start-up costs, as well as annual burdens running into seven figures.
The Scottish Government’s ‘Partial Business and Regulatory Impact Assessment’ stated businesses across Scotland would need to spend £1.7 million preparing for the controversial tax, including till modifications, staff training and communicating the SNP change to customers.
Thereafter, the levy will cost £1.5 million a year to administer, although the document – released this week – suggests there could be a way of making it cost-neutral for companies.
The initial cost of charging 5p for every plastic bag will cost consumers £14 million a year, it has been estimated in the report, with the document suggesting that would be offset by the current “hidden costs” in plastic bag provision being removed.
In addition, the Scottish Government will have to spend £1 million launching the scheme, with further annual running costs of another £1 million.
There are around 22 suppliers of carrier bags in Scotland, all of whom would be hit by the reduction in use.
That could cost up to 69 jobs, the report conceded, with at least two major firms in Scotland of over 100 employees whose main business is single-use bags.
The paper added that it hoped agreement could be reached for firms to donate any profits from the tax to charity.
The Scottish Conservatives are the main political critics of the carrier bag charge, joining several business leaders in slamming the move.
Scottish Conservative environment spokesman Jamie McGrigor said:
“This green-driven initiative is going to have a real financial impact on businesses, shoppers and the taxpayer.
“It’s all very well saying this is a move to safeguard the environment, but that’s of no consolation to struggling retailers who are being lumbered with more costly red tape.
“And people who find it hard enough to pay their weekly shopping bill are going to find there’s yet another charge to contend with.
“We’d much prefer to see an incentive-based scheme brought in, which could see shoppers rewarded – something that will make it easy for businesses to run if they want to.
“This is more evidence of the SNP’s blind determination to legislate for everything, without thinking of the everyday impact this is going to have”.