Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps her Department is taking to increase the (a) accountability and (b) transparency of the allocation by retailers of revenue raised for environmental causes from the five pence plastic bag charge.
The introduction of the 5p charge on single use carrier bags has reduced sales by 90% by the main supermarket retailers. The regulations require retailers with more than 250 staff to charge a minimum of 5p and report data on their annual sales of single use carrier bags, including what they did with the proceeds from the charge.
The Department publishes a summary of the data reported in line with the regulations by 31st July each reporting year on the GOV.UK site.
As this is not a tax, the Government does not determine where the proceeds of the charge are redistributed. There is no legal requirement for businesses to donate the proceeds from the charge to charities. Businesses are, however, encouraged to donate the proceeds of the charge (after deducting VAT and reasonable costs) to good causes such as charities or community groups in accordance with guidance published on GOV.UK (https://www.gov.uk/guidance/carrier-bag-charges-retailers-responsibilities#dealing-with-the-proceeds).
Around 55% of retailers, who accounted for 57% of all bags reported for 2018 to 2019, voluntarily provided information on donations they had made to good causes. Over the last three reporting years the charge has raised nearly £140 million.