25p ‘latte levy’ on disposable coffee cups would hit poorest hardest, hospitality groups warn

A proposed 25p ‘latte levy’ on disposable coffee cups is causing concern among hospitality groups who warn that it would disproportionately impact the poorest members of society. The Scottish Government is seeking feedback on the idea of implementing a charge on single-use cups in an effort to reduce litter and waste by encouraging the use of reusable cups. However, UKHospitality Scotland raised objections, citing the regressive nature of the levy and pointing to failed similar initiatives in other regions such as in Portugal and Vancouver, Canada.

In Vancouver, a 25 cent fee on disposable cups was later repealed after it failed to change consumer behaviour and negatively affected vulnerable communities. UKHospitality Scotland’s Executive Director, Leon Thompson, expressed that introducing a tax on disposable cups during a time when consumers are mindful of their spending is illogical and would disproportionately impact lower-income individuals. The trade body urged the Scottish Government to abandon the proposal, highlighting international evidence that such charges do not effectively achieve their intended goals.

While some see the potential ‘latte levy’ as an opportunity to significantly reduce the approximately 400 million disposable cups used annually in Scotland, others argue that the levy may not lead to the desired behavioural change. Research suggests that nearly half of the population could alter their habits in response to a single-use cup charge. The Scottish Government estimates that the policy could help address the 5400 tons of waste generated by discarded cups each year.

As discussions continue around the implementation of the ‘latte levy’, differing perspectives on its impact and effectiveness are emerging within the hospitality industry and among environmental advocates. The outcome of these deliberations could shape future initiatives aimed at reducing single-use plastics and promoting sustainable practices in Scotland’s food and beverage sector.