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Plastic bag charge: Where does the money go? | Plastic bag charge: Where does the money go? |
(about 9 hours later) | |
The 5p charge for plastic bags in England could be extended to cover shops and chains with 250 or fewer employees, under government plans. | The 5p charge for plastic bags in England could be extended to cover shops and chains with 250 or fewer employees, under government plans. |
In Scotland, Wales and Northern Ireland, the 5p charge already applies to all businesses, regardless of size. | In Scotland, Wales and Northern Ireland, the 5p charge already applies to all businesses, regardless of size. |
In the last financial year, large retailers in England sold 2.1 billion plastic bags. | In the last financial year, large retailers in England sold 2.1 billion plastic bags. |
But where does all the money go? | But where does all the money go? |
According to the government, there is a "clear expectation" the proceeds from the charge will go to good causes. | According to the government, there is a "clear expectation" the proceeds from the charge will go to good causes. |
It's up to the individual retailer to decide what cause to support. | It's up to the individual retailer to decide what cause to support. |
At the end of the last financial year (April 2017), the government asked the large retailers in England about their donations over the previous 12 months. | At the end of the last financial year (April 2017), the government asked the large retailers in England about their donations over the previous 12 months. |
Of the 261 that currently apply the 5p charge, 168 retailers responded. | Of the 261 that currently apply the 5p charge, 168 retailers responded. |
This included the eight main retailers: | |
In total, £66m was donated to good causes in the year 2016-17. | In total, £66m was donated to good causes in the year 2016-17. |
This works out at 4p for every single-use bag sold. | This works out at 4p for every single-use bag sold. |
But why doesn't the full 5p get donated? | But why doesn't the full 5p get donated? |
First, retailers are allowed to deduct "reasonable costs" from their total before donating. | First, retailers are allowed to deduct "reasonable costs" from their total before donating. |
The cost of the bags can't be claimed back, but retailers are allowed to deduct the cost of changing till systems, training staff and other administrative costs. | The cost of the bags can't be claimed back, but retailers are allowed to deduct the cost of changing till systems, training staff and other administrative costs. |
Of the retailers who responded, 45 opted to deduct "reasonable costs" from their proceeds. | Of the retailers who responded, 45 opted to deduct "reasonable costs" from their proceeds. |
This came to a total of £4.5m. | This came to a total of £4.5m. |
Secondly, the 5p plastic-bag charge includes VAT - money that goes straight to government. | Secondly, the 5p plastic-bag charge includes VAT - money that goes straight to government. |
Last year, large retailers paid £17m in VAT from the plastic-bag charge. | Last year, large retailers paid £17m in VAT from the plastic-bag charge. |
In terms of who donated the most: Tesco come out top (£23.1m), followed by Morrison's (£6.4m) and the Co-operative Group (£6.3m). | In terms of who donated the most: Tesco come out top (£23.1m), followed by Morrison's (£6.4m) and the Co-operative Group (£6.3m). |
Local causes were the big winner, receiving £33m - half of the total donations. | Local causes were the big winner, receiving £33m - half of the total donations. |
£20,000 fines | £20,000 fines |
But how does the government know retailers are being honest about the way they charge for bags and donate to charity? | But how does the government know retailers are being honest about the way they charge for bags and donate to charity? |
By law, retailers need to keep a record of the number of plastic bags sold and what was done with the proceeds. | By law, retailers need to keep a record of the number of plastic bags sold and what was done with the proceeds. |
Failure to comply can lead to fines of up to £20,000. | Failure to comply can lead to fines of up to £20,000. |
Local authorities can send inspectors into shops to carry out "secret shopper" exercises to make sure bags are being charged correctly and records are being kept. | Local authorities can send inspectors into shops to carry out "secret shopper" exercises to make sure bags are being charged correctly and records are being kept. |
BBC Reality Check asked the government how many fines had been given out since the plastic-bag charge had been introduced. | BBC Reality Check asked the government how many fines had been given out since the plastic-bag charge had been introduced. |
The Department for Environment, Food and Rural Affairs, which is responsible for this policy, told us it did not hold the information on who had been fined. | The Department for Environment, Food and Rural Affairs, which is responsible for this policy, told us it did not hold the information on who had been fined. |
What do you want BBC Reality Check to investigate? Get in touch | What do you want BBC Reality Check to investigate? Get in touch |
Read more from Reality Check | Read more from Reality Check |
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