Belu Water CEO on the little-known tax causing 'big headaches' for business

Natalie Campbell is the co-CEO of Belu Water, a social enterprise that provides mineral water, sourced from Wales, primarily to the hospitality industry.

Belu Water was founded in 2002 and posted annual revenues of nearly £10m last year. It is a self-sustaining business, with all of its net profits donated to WaterAid, which funds clean water projects around the world.

Most of Belu's water is supplied in glass bottles, which can be recycled and help avoid the use of plastic derived from fossil fuels. The company also installs on-site filtration systems for hospitality venues, enabling bottles to be washed and reused.

However, Belu's reliance on glass puts the company squarely firmly in the crosshairs of the government’s new Extended Producer Responsibility (EPR) scheme, which began rolling out this year. The scheme is designed to make packaging producers pay upfront for the cost of household waste and recycling – making glass an expensive option.

“We now have a new fee of about £800,000,” says Campbell. “EPR is a little-known tax that is about to hit most businesses in England and Wales.” She believes the levy will have wider repercussion across the economy.

“We’re seeing food prices driving inflation,” she adds, “partly because of the packaging it’s coming in. But no one is connecting the dots.”

John Lewis recently reported that EPR added £29m to its costs in the first half of its financial year 2025/26. Businesses of all sizes have begun reporting their liabilities for materials including plastic, aluminium, wood, metal and cardboard. Drinks companies are not being charged yet for aluminium and some plastic containers, as these are expected to fall under a forthcomingn deposit return scheme instead.

While the ultimate aim of EPR is to promote a circular economy, Campbell believes the current system is flawed. Although the levy is intended to support sustainable waste management, the money councils receive will not be ring-fenced for recycling and could instead be used for anything from fixing potholes to funding social care.

“We are actively lobbying the chancellor and saying they need to rethink the policy,” says Campbell. “We are saying that they need to rethink the tonnage [costs] and also that B2B businesses should not be included.”