Shoppers have been told to brace for £1.6bn of price rises this year as supermarkets grapple with a new net zero tax .

High street bosses said they would have to pass on to consumers more than 80pc of the cost from a recycling tax, which is coming into force this week.

It means shoppers will see prices rising by as much as £1.6bn from the new tax alone, with the scheme expected to cost retailers and manufacturers around £2bn a year.

Andrew Opie, from industry group the British Retail Consortium (BRC), said this would be a “multibillion-pound levy being paid by consumers during a cost of living crisis”, adding: “They will ask: what are we getting for higher prices?”

It comes amid growing concerns over the risk of piling extra costs on retailers, as store prices start to climb.

Figures this week revealed that the pace of shop price rises stepped up in September, increasing 1.4pc year on year versus a 0.9pc annual rise for August.

The Bank of England earlier this month said government policy was partly to blame for higher inflation. Officials have been battling to bring inflation under control after it hit 3.8pc in August, well above the Bank’s 2pc target.

The extended producer responsibility (EPR) scheme, which is kicking in from October, is designed to force producers of food and drink packaging to pay for its disposal. The Government said it hoped to raise £1bn a year from the policy.

However, retailers and food and drink-makers have warned that they cannot swallow the higher costs. The BRC said retailers were already grappling with an extra £5bn in employment costs after the Chancellor raised their National Insurance contributions and National Living Wage in her last Budget.

It added: “This new tax will be yet another inflationary pressure, at a time when food prices are already rising fast.”

The Bank of England estimates that EPR will add to food inflation. Under the policy, the amount of tax will be calculated by weight, as well as the difficulty and expense of collection and disposal.

It means the levy will be higher for heavier items such as glass bottles, than for lighter packaging, such as plastic or aluminium.

Sean Murphy, managing director at glass giant Encirc, said the changes threatened to send the price of products in glass bottles or jars soaring.

Estimates this summer suggested that the policy would mean a standard bottle of wine would cost 9p more and the cost of a 330ml beer bottle will rise by around 4p.

Mr Murphy said: “The new glass bottle tax is an economic and environmental own goal, hitting UK firms producing packaging that is far better for the environment than plastic.”

He added: “This tax will hit everyone – in the supermarkets, pubs and glass factories that create thousands of jobs.”

The Government has said the scheme is intended to encourage manufacturers to use environmentally friendly materials.

The BRC has called for the levy to be ringfenced to improve local recycling.

Mr Opie said: “Unless funds are spent transparently and effectively, EPR threatens to just be another burden on an already overtaxed industry with no tangible benefits for customers or the environment.”

The Government said: “EPR moves the cost of dealing with waste away from taxpayers, generates over a £1bn annually that must be spent by councils to improve recycling collections and thereby benefit every household across England.

“The changes underpin major investment in the UK economy, helping create 25,000 jobs and we will continue to listen and work with trade and industry bodies as they are implemented.”

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Shoppers have been told to brace for £1.6bn of price rises this year as supermarkets grapple with a new net zero tax .

High street bosses said they would have to pass on to consumers more than 80pc of the cost from a recycling tax, which is coming into force this week.

It means shoppers will see prices rising by as much as £1.6bn from the new tax alone, with the scheme expected to cost retailers and manufacturers around £2bn a year.

Andrew Opie, from industry group the British Retail Consortium (BRC), said this would be a “multibillion-pound levy being paid by consumers during a cost of living crisis”, adding: “They will ask: what are we getting for higher prices?”

It comes amid growing concerns over the risk of piling extra costs on retailers, as store prices start to climb.

Figures this week revealed that the pace of shop price rises stepped up in September, increasing 1.4pc year on year versus a 0.9pc annual rise for August.

The Bank of England earlier this month said government policy was partly to blame for higher inflation. Officials have been battling to bring inflation under control after it hit 3.8pc in August, well above the Bank’s 2pc target.

The extended producer responsibility (EPR) scheme, which is kicking in from October, is designed to force producers of food and drink packaging to pay for its disposal. The Government said it hoped to raise £1bn a year from the policy.

However, retailers and food and drink-makers have warned that they cannot swallow the higher costs. The BRC said retailers were already grappling with an extra £5bn in employment costs after the Chancellor raised their National Insurance contributions and National Living Wage in her last Budget.

It added: “This new tax will be yet another inflationary pressure, at a time when food prices are already rising fast.”

The Bank of England estimates that EPR will add to food inflation. Under the policy, the amount of tax will be calculated by weight, as well as the difficulty and expense of collection and disposal.

It means the levy will be higher for heavier items such as glass bottles, than for lighter packaging, such as plastic or aluminium.

Sean Murphy, managing director at glass giant Encirc, said the changes threatened to send the price of products in glass bottles or jars soaring.

Estimates this summer suggested that the policy would mean a standard bottle of wine would cost 9p more and the cost of a 330ml beer bottle will rise by around 4p.

Mr Murphy said: “The new glass bottle tax is an economic and environmental own goal, hitting UK firms producing packaging that is far better for the environment than plastic.”

He added: “This tax will hit everyone – in the supermarkets, pubs and glass factories that create thousands of jobs.”

The Government has said the scheme is intended to encourage manufacturers to use environmentally friendly materials.

The BRC has called for the levy to be ringfenced to improve local recycling.

Mr Opie said: “Unless funds are spent transparently and effectively, EPR threatens to just be another burden on an already overtaxed industry with no tangible benefits for customers or the environment.”

The Government said: “EPR moves the cost of dealing with waste away from taxpayers, generates over a £1bn annually that must be spent by councils to improve recycling collections and thereby benefit every household across England.

“The changes underpin major investment in the UK economy, helping create 25,000 jobs and we will continue to listen and work with trade and industry bodies as they are implemented.”

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.

He added: “This tax will hit everyone – in the supermarkets, pubs and glass factories that create thousands of jobs.”

The Government has said the scheme is intended to encourage manufacturers to use environmentally friendly materials.

The BRC has called for the levy to be ringfenced to improve local recycling.

Mr Opie said: “Unless funds are spent transparently and effectively, EPR threatens to just be another burden on an already overtaxed industry with no tangible benefits for customers or the environment.”

The Government said: “EPR moves the cost of dealing with waste away from taxpayers, generates over a £1bn annually that must be spent by councils to improve recycling collections and thereby benefit every household across England.

“The changes underpin major investment in the UK economy, helping create 25,000 jobs and we will continue to listen and work with trade and industry bodies as they are implemented.”

Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.