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Carrier Bag Charging in the UK

Carrier Bag Charging in the UK

Single Use Carrier Bags - Statutory Reporting 2018

Red text = 2016/17 figures

Carrier bags sold in the period from 7 April 2017 to 6 April 2018
  No. of single use bags sold Gross proceeds of charge VAT Net proceeds
ENGLAND £130,540,076 144,836,755 £6,527,004 £7,241,837 £1,087,834 £1,206,972 £5,439,170 £6,034,864
ONLINE 52,731,124 46,671,895​ ​​£2,636,556 £2,333,594 £149,239 £132,090 £2,487,317* £2,201,504
SCOTLAND 17,481,620 874,081 145,680 £728,401
WALES 7,860,445 393,022 65,504 £327,519
UK TOTAL 157,288,087 7,864,404 1,310,734 £6,553,671

*£2,154,966 ​was used to support the recycling incentive we offer to our online customers. The remaining £332,351 was used to support the Morrisons Foundation.

Online

Bags charged for use in our stores attract VAT at the standard rate of 20%. The net proceeds from bags sold in store were donated to the Morrisons Foundation and our national charity partner, CLIC Sargent (the UK’s leading cancer charity for children and young people). Bags charged for use in our online operations attract VAT at a blended rate agreed with HMRC (hence the reported figure of VAT which does not equate to 20% of net proceeds). After the deduction of a blended rate of VAT from the charge applied in our online business, net proceeds equate to £2,487,317​. £2,154,966 ​was used to support the recycling incentive we offer to our online customers. The remaining £332,351 was donated the Morrisons Foundation.

Single Use Carrier Bags - Statutory Reporting 2017

Carrier bags sold in stores in the year to 6 April 2017 (the “charging year”)
  No. of single use bags sold Gross proceeds of charge VAT Net proceeds
ENGLAND 144836755 £7,241,837.75 £1,206,972.96 £6,034,864.79
SCOTLAND 20244918 £1,012,245.89 £168,707.65 £843,538.24
WALES 9233672 £461,683.60 £76,947.27 £384,736.33
UK TOTAL 174315345 £8,715,767.24 £1,452,627.87 £7,263,139.37

Stores and online combined:

Carrier bags sold in stores and online in the year to 6 April 2017 (the “charging year”)
  No. of single use bags sold Gross proceeds of charge VAT Net proceeds
ENGLAND 144,836,755 £7,241,837.75 £1,206,972.96 £6,034,864.79
ONLINE 46,671,895​ ​​£2,333,594.75 £132,090.27 £2,201,504.48
TOTAL 191,508,650 £9,575,432.5 £1,339,063.23 £8,236,369.27

Online

Bags charged for use in our stores attract VAT at the standard rate of 20%. Bags charged for use in our online operations attract VAT at a blended rate agreed with HMRC (hence the reported figure of VAT which does not equate to 20% of net proceeds).

After the deduction of a blended rate of VAT from the charge applied in our online business net proceeds equate to £2,201,504.48​. £​1,823,312.59 ​was used to support the recycling incentive we offer to our online customers. The remaining £​378,191.89 has been used to support the Morrisons Foundation.

After the deduction of a blended rate of VAT from the charge applied in our online business net proceeds equate to £2,201,504.48​. £​1,823,312.59 ​was used to support the recycling incentive we offer to our online customers. The remaining £​378,191.89 has been used to support the Morrisons Foundation.

In line with legislation we charge 5p for all single use carrier bags in England, Scotland and Wales.

Morrisons use of carrier bag proceeds

All net proceeds generated from the charge on our single-use carrier bags are used to support good causes, with the Morrisons Foundation being the main beneficiary. Launched in 2015 to support registered charities throughout England, Scotland and Wales, the Morrisons Foundation awards grants for charity projects, and match funds the money that Morrisons colleagues raise for charity. Visit the Morrisons Foundation's website to find out more and apply for funding.

The figures


£4,602,295 generated in net proceeds across the UK in the 2015/16 reporting period.
£4,130,847 has been donated to the Morrisons Foundation
£314,299 has been donated to our national charity partner Sue Ryder
£157,150 will be donated to the University College London to support the development of a new world class dementia research centre

Proceeds generated in English stores

Reporting year 2015/16

Number of Single use carrier bags Gross Amount Received VAT Net Proceeds
75,431,771 £3,771,589 £628,598 £3,142,990


Proceeds generated in Scottish stores

Reporting year 2015/16

Number of Single use carrier bags Gross Amount Received VAT Net Proceeds
20,965,690 £1,048,285 £174,714 £873,570


Reporting year 2014/15

Number of Single use carrier bags Gross Amount Received VAT Net Proceeds
9,204,124 £460,206 £76,701 £383,505


Proceeds generated in Welsh stores

Reporting year 2015/16

Number of Single use carrier bags Gross Amount Received VAT Net Proceeds
9,356,263 £467,813 £77,969 £389,844


Reporting year 2014/15

Number of Single use carrier bags Gross Amount Received VAT Net Proceeds
9,596,430 £479,822 £79,970 £399,851


Reporting year 2013/14

Number of Single use carrier bags Gross Amount Received VAT Net Proceeds
9,940,959 £497,048 £82,841 £414,207


Proceeds generated from online sales

Proceeds generated from the charge for bags used in our online deliveries support a recycling incentive we offer to customers. We do not keep a penny of profit from the incentive scheme, and because not all of our customers choose to return their bags to the delivery driver for recycling, £195,890 was generated in net proceeds, which has been donated to the Morrisons Foundation.




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