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Could we see a 25p 'latte levy'?

MPs are calling for a 25p "latte levy" on disposable coffee cups- and a total ban unless recycling improves.

A report by the Environmental Audit Committee says the tax should be used to improve the UK's recycling and reprocessing facilities. The MPs also say throwaway cups should be prohibited altogether by 2023 if they are not all being recycled. Although disposable coffee cups are technically recyclable, most are not because the UK has just three facilities that can split the paper cup from the plastic liner to make it suitable for recycling.

In response, major retailer Starbucks said it would try out a 5p cup charge in 20 to 25 central London outlets, as well as continuing the offer of a 25p discount to customers who bring their own reusable cups. However this discount is currently only used by less than 2% of takeaway coffee consumers.

The UK throws away 2.5 billion disposable coffee cups every year, with almost none being recycled and half a million a day are littered. The UK's coffee shop market is expanding rapidly, so the tax hopes to kick start the recycling revolution needed to match the growing demand.