Tag: deposit return scheme

Concerns over Deposit Return Scheme delays

Devolved governments and businesses facing further uncertainty

Circular Economy Minister Lorna Slater has written to the Secretary of State for Environment, Food and Rural Affairs to express her frustration at a further significant delay to the Deposit Return Scheme launch, despite repeated requests for DEFRA to set out its plans.

The full text of the Circular Economy Minister’s letter: 

To: Stephen Barclay Secretary of State for Environment, Food and Rural Affairs
From: Lorna Slater Circular Economy Minister

Dear Stephen

I am writing to you to express my deep concerns at your comments about the future of a Deposit Return Scheme (DRS) to the Environment, Food and Rural Affairs Committee on Tuesday 26 March.

Despite our continued requests for Defra to set out its plans for DRS, and my recent correspondence dated 8 March on such matters, it is extremely frustrating to hear about details of a further significant delay to the DRS launch from media reports.

Your Government committed to develop and consult on a DRS in England for metal, plastic and glass drinks containers in 2018, a commitment also set out in your 2019 manifesto. We are now five years on from that commitment, which has been significantly weakened following your Government’s decision to remove glass from the scheme in 2023. It is clear now that it will be further delayed.

As you know, Scotland would now have an operational DRS if the UK Government had not prevented it from moving forward as planned. This would have provided a launchpad for wider DRS across the UK meaning we would all be experiencing the environmental and economic benefits much sooner.

Instead, the UK Government’s refusal to provide that IMA exclusion created enormous uncertainty for businesses on what a scheme across the UK would look like and on how it would be delivered, and severely undermined confidence. Even though the main premise for undermining Scotland’s scheme was the need for a UK-wide approach, almost one year on, there is no further clarity on the details of your Regulations. We, the other devolved governments, and businesses now find ourselves facing even greater uncertainty as a result of these latest comments.

It is also now clear from your comments that the UK Government won’t hesitate to continue to use the IMA to undermine, override and re-write devolved legislation, disregarding four-nation agreements and good-faith engagement in Common Frameworks to so do.

Despite the continued shifting of goal posts and delays by the UK Government, which we have set out in an annex to this letter, officials across the four nations have been working closely since May last year to design and agree interoperable schemes.

Minister Moore’s letter to devolved Ministers on 1 March particularly emphasised the valuable input from Scottish officials, and that the preparations we had already put in place to deliver DRS in Scotland has helped inform the four nations approach, including the amendments to our regulations in May and September last year, based on significant feedback from business.

We have said from day one that we we’re committed to all schemes across the UK to work together. We designed our scheme in good faith so it would be interoperable with the proposals agreed and consulted upon by all UK nations. I would ask that you focus on working with all devolved nations to finalise an interoperable DRS, which still recognises the devolved nature of this policy, to provide businesses with the certainty they need to make the scheme a success. This includes setting out a realistic timescale for delivery which is agreed across the four nations, rather than creating speculation without consultation.

I am copying this letter to Robbie Moore MP Parliamentary Under Secretary of State, Huw Irranca-Davies AS/MS Minister for Climate Change and Andrew Muir MLA, Minister of Agriculture, Environment and Rural Affairs. I have also copied to the Secretary of State for Scotland, Secretary of State for Wales, and Secretary of State for Northern Ireland, the Permanent Secretary for Defra and the Defra Director for Resources & Waste for their information.

Kind regards

LORNA SLATER

https://www.gov.scot/publications/deposit-return-scheme-letter-uk-government/ 

Scotland property: Average Edinburgh worker needs almost 5 years to save up for a deposit for an average home

A new study by Cala Homes looked at the median weekly salary in over 130 UK towns and cities and worked out how long it would take a single person to save for a 10% deposit for the median house price in the same area. The data was based on a person saving just 10% of their salary, to account for bills, rising costs and other outgoings.

The research revealed that the residents in Scotland are in a far better position than the rest of the UK when it comes to achieving the first step to getting on the property ladder. Overall, saving for a house deposit in the UK takes 13 years, while the average saving time in Scotland was found to be just 4 years and 245 days.

The study found that out of the Scottish locations analysed, Aberdeen offered the shortest time, 2 years and 182 days, to save for a 10% deposit of the median detached house price of £79,720.

The next one on the list is the wider county of Aberdeenshire, where a single resident saving 10% of the median weekly salary of £640 for the area, would need 3 years and 36 days to save up for a 10% deposit of the median detached property price of £102,060. This would mean just over 1 and a half years for a couple saving.

And in third, East Renfrewshire, with a very respectable weekly median salary of £800, it would take someone just under 4 years to save 10% of their salary to get the deposit needed for the £166,020 median house price in this area.

Deposit saving times in each Scottish location

RankLocal authority nameMedian detached house price (Sep 2022)Median Weekly PayYear to save for 10% deposit
1Aberdeen£79,720£621.302.47
2Aberdeenshire£102,060£639.903.07
3East Renfrewshire£166,020£799.703.99
4East Dunbartonshire£157,290£739.904.09
5Angus£130,140£603.804.14
6South Ayrshire£140,330£641.104.21
7North Ayrshire£140,620£618.504.37
8Highland£143,450£630.204.38
9Inverclyde£141,380£621.104.38
10South Lanarkshire£148,060£635.204.48
11Perth and Kinross£151,880£648.604.50
12Scottish Borders£141,180£587.604.62
13Renfrewshire£156,860£631.204.78
14Dundee£141,260£566.004.80
15Clackmannanshire£161,230£644.104.81
16Edinburgh£163,920£646.504.88
17North Lanarkshire£160,550£630.804.89
18Fife£153,480£594.404.97
19Stirling£161,650£618.105.03
20West Dunbartonshire£154,990£592.605.03
21East Ayrshire£159,270£607.705.04
22East Lothian£167,410£632.105.09
23Moray£143,890£541.605.11
24Falkirk£162,340£605.605.16
25West Lothian£167,180£616.805.21
26Midlothian£168,220£615.605.26
27Dumfries and Galloway£150,990£538.905.39
28Argyll and Bute£157,110£546.305.53
29Glasgow£183,270£616.805.71

Scotland’s highest median detached house price is in its biggest city – Glasgow, at £183,270. But, even there, where it would take 5 years and 259 days for a single person to save for a 10% deposit, it has nothing on locations in England such as London, where on average it would take a single person 37 years and 182 days to save 10% of the median detached house prices.

The figures from the study only represent how long it would take a single person to save for the full 10% deposit, based on saving 10% of the median salary, so those that are buying with someone else could cut this figure in half and there are schemes available that can also help reduce this time.

.Glenn Copper, Sales & Marketing Director for Cala Homes (North Home Counties) said: “Against the backdrop of a housing and cost of living crisis, some schemes such as Deposit Unlock could offer more people an opportunity to own a new home by giving them access to low-deposit mortgages.

“It could also help buyers to significantly reduce the time it takes to save for a new home, and it isn’t just for first-time buyers, the scheme is open to home movers and those looking to return to the market following separation or divorce.

“If you are currently paying money towards your rent and you would prefer to pay this towards buying a new home, then it could be worth exploring what Deposit Unlock could do to make buying a new home more affordable for you.”

You can view the whole study here: https://www.cala.co.uk/about-cala/cala-news-lifestyle/blogs/2023/jun/26/the-quickest-and-slowest-places-to-save-for-a-house-deposit-in-the-uk/

SUNK: Deposit Return Scheme delayed until October 2025 at the earliest

‘These delays and dilutions lie squarely in the hands of UK Government that has sadly seemed so far more intent on sabotaging this parliament than protecting our environment’ – LORNA SLATER, Circular Economy Minister

The launch of Scotland’s Deposit Return Scheme will be delayed until at least October 2025 as a consequence of the UK Government’s refusal to agree a full exclusion from the Internal Market Act, Circular Economy Minister Lorna Slater has told Parliament.

Last week the UK Government imposed a number of highly significant conditions on the scheme, including the removal of glass and the requirement to align aspects of the scheme with schemes across the UK – none of which exist at the moment or have regulations in place.

Following consultations with key businesses including producers, Ministers have concluded that certainty on critical elements of the scheme cannot be provided to businesses until the UK Government publishes more detail and therefore Scotland’s deposit return scheme will not go live until October 2025 at the earliest.

Addressing Parliament yesterday, Circular Economy Minister Lorna Slater said: “As of today, it is now clear that we have been left with no other option than to delay the launch of Scotland’s DRS, until October 2025 at the earliest based on the UK Government’s current stated aspirations.

“I remain committed to interoperable DRS schemes across the UK provided that we can work in a spirit of collaboration not imposition.  I wrote again last night to the UK Government, to urge ministers to reset a climate of trust and good faith to galvanise and retain the knowledge that has been built in Circularity Scotland and DRS partners in Scotland.

“This Parliament voted for a Deposit Return Scheme. I am committed to a Deposit Return Scheme. Scotland will have a Deposit Return Scheme. It will come later than need be. It will be more limited than it should be. More limited than Parliament voted for.

“These delays and dilutions lie squarely in the hands of UK Government that has sadly seemed so far more intent on sabotaging this parliament than protecting our environment.”

The Scottish Beer & Pub Association has welcomed the decision to delay:

BACKGROUND

The Scottish Parliament legislated to create a deposit return scheme including glass in May 2020. The Internal Market Act was passed in December 2020.

Of the 51 territories and countries operating deposit return schemes, 45 include glass.

Following correspondence from the First Minister to the Prime Minister, the UK Government confirmed on 5 June it would not reconsider the conditions attached to the Internal Market Act exclusion.

The First Minister and Circular Economy Minister met with businesses on 7 June to discuss the implications of the UK Government’s decision.

The conditions for an exclusion include a maximum cap on deposit levels agreed across all nations, one administration fee to cover all schemes across the UK, one barcode for use across all parts of the UK and one logo for all schemes.

Is the Scottish economy really growing at FOUR times the rate of the UK?

The big political news of the week in Scotland was undoubtedly the further disputes about the Scottish Government’s troubled Deposit Return Scheme (writes Fraser of Allander Institute’s MAIRI SPOWAGE).

This followed the decision by the UK Government to allow the scheme in Scotland to proceed, granting a “temporary and limited” exemption from the Internal Market Act, but only if the Scottish scheme excluded glass – and therefore include PET plastic, aluminium and steel cans only.

The justification from the UK government’s point of view is that the exemption is temporary only until UK-wide schemes are introduced (planned to be in 2025); and that the exemption does not include glass because the scheme that the UK Government are planning to introduce does not include glass.

The Scottish Government have made it clear, through a statement by the responsible Minister Lorna Slater on Tuesday, that this may mean that the scheme as designed in Scotland is not viable. The SG are now examining the implications of how and if the scheme can proceed on this basis.

If the decision by the SG was to scrap the scheme, or even to proceed without glass, there are likely to be calls for significant compensation for the businesses who have invested money to comply with the scheme, including the glass elements.

This is not just an issue about DRS, or actually about Scotland. Wales had also planned to introduce a similar scheme, also including glass, and Mark Drakeford intervened yesterday to say that he would “dispute the use of the internal market for these purposes”, flagging that the UK Government had also initially planned to include glass in their scheme.

This row is now firmly in the area of constitutional grievance, with both the Welsh and Scottish Governments accusing the UK Government of meddling in devolved areas. We await to see how the Scottish Government will respond, but it is likely to include significant condemnation of the UK government no matter which course of action is chosen.

More questions over the cost of the National Care Service

While the fate of the National Care Service overall is uncertain, despite the new First Minister reiterating his commitment to the idea in recent weeks, there have been further exchanges between the Finance and Public Administration Committee at Holyrood and the Minister responsible Maree Todd.

In a letter published on Tuesday, the acting convener Michael Marra MSP has outlined the displeasure of the committee at not being given any more details of the costs of the scheme, given the formal role that this Committee has in scrutinising Financial Memorandums which accompany legislation and the fact they had formally requested more information after what they saw as an inadequate first draft.

A deadline of 21st June for the Minister to respond – watch this space for updates!

Scotland’s economy growing faster than the UK in recent months

This week the Scottish Government published monthly data for March, which also meant they published the first estimate of quarterly growth for Scotland. This showed that Scotland had grown 0.4% in the four months to March, compared to 0.1% for the UK as a whole.

This led to headlines saying “Scottish economy grows at four times rate of the UK” and the like.

As folks who comment a lot on this sort of data, our heart sinks a little when seeing the growth figures being described like this. Yes, 0.4 is 4 times the size of 0.1. (Although to be technical, the figures are actually 0.13 and 0.36 – so not quite). But headlines like this somewhat exaggerate the meaning of such a difference in a quarterly figure and what it tells us about economic performance in Scotland vs the UK.

Digging under the data, the differences mainly come from the figures from March itself, where we see a contraction in the UK figure – driven by a contraction in consumer-facing services. It is really interesting to see these services in Scotland holding up a bit better, at least according to this first estimate of monthly growth.

 ScotlandUK
Monthly growth to March0.0%-0.3%
Quarterly growth to March0.4%0.1%
Annual Growth to March2.1%1.9%
Growth since pre-pandemic level (Feb 2020)1.2%0.1%
Growth over the last 5 years1.6%2.6%
Growth over the last 10 years9.8%15.5%

If we look over the last year, Scotland still performs better – growing at 2.1% compared to 1.9% at the UK level. Although, we should all be aware that such differences could change as data get revised.

Over the longer term, we can see that growth in Scotland has been more muted – driven partly by the oil price shock in 2015/16, and also over the medium term in the differences in population growth in Scotland compared to the UK average.

We’ll continue to dig under these data to understand more about differential economic performance in Scotland and the UK!

Summer has definitely arrived over the last week, and I’m sure we won’t be the only ones cracking out the barbeque this weekend. Enjoy the sunshine (with the factor 50 on, of course)!

Scotland’s Bottle Deposit Return Scheme: Have visually-impaired people even been considered?

Sight Scotland: people with vision impairment will not be able to take part in the bottle return scheme

Sight Scotland and Sight Scotland Veterans have welcomed the delay to the Bottle Deposit Return Scheme and are urging the Scottish Government to use this time to consider the implications it will have for visually impaired people.

The Bottle Deposit Return Scheme, which is used by many other countries to encourage recycling, will charge people a small deposit on certain types of containers, which will be given back to them when they return it to a recycling point. People return their items to a reverse vending machine where they scan their bottles to receive cash back.

The sight loss charities are concerned that people with vision impairment will not be able to take part in the scheme and will incur the increased costs with no way of getting their money back, thus increasing cost of living pressures further.

Craig Spalding, Chief Executive, Sight Scotland and Sight Scotland Veterans, explains: “Although we support environmental initiatives like the Bottle Deposit Return Scheme, we are extremely worried that the rights of visually impaired people have not been taken into consideration when the scheme has been developed. We urge the Scottish Government to take this time to review several unacceptable accessibility issues.

“For many blind and partially sighted people online food shopping is key to being able to shop independently. This is also true for many older people. We are concerned that those unable or who find it challenging to physically go to a supermarket will not be able to participate in the return scheme and will bear a disproportionate cost on bottled items.

“We are aware that new regulations state that some large retailers will provide a vital takeback service. However, we are very concerned about recent reports of one large supermarket possibly cancelling online shopping deliveries to get out of offering a takeback service. If this is the case, it is likely other supermarkets will follow suit which will isolate more people with visual impairment from the scheme.

“For those who are able to shop in person, we are also concerned about how someone with visual impairment will be able to identify what bottles are included in the scheme and how will they be able to operate the reverse vending machine. Will they be required to scan the bottles manually? It is essential the codes are in large print and have a tactile marker to indicate where they are on the bottle. We feel it is a necessity that reverse vending machines should include audio instructions and large print on the screen. The test machines which are currently in some shops around the country have none of these unfortunately.” 

Spalding adds: “We have written to the Scottish Government raising our concerns and are currently awaiting a reply. As it stands just now, the Bottle Deposit Return Scheme just does not work for blind or partially sighted people.”

For more information on Sight Scotland, and Sight Scotland Veterans, please visit sightscotland.org.uk or sightscotlandveterans.org.uk.

Common sense prevails: Changes announced to deposit return scheme

Craft drinks producers and pubs that provide off-sales are among those that will benefit from changes to Scotland’s deposit return scheme.

Circular Economy Minister Lorna Slater has announced a range of measures to make it easier for drinks producers and retailers to prepare for the scheme, while making sure environmental benefits are still delivered, and repeated the call on the UK Government to issue an exclusion for the scheme from the Internal Market Act.

The changes announced are:

  • drinks containers of under 100ml will be excluded, removing miniatures and other smaller containers from the scheme
  • products that sell fewer than 5,000 units per year will be excluded, which will particularly benefit craft producers
  • all hospitality premises that sell the large majority of their drinks products for consumption on the premises will be exempt from acting as a return point
  • the online application process for retailers to apply for an exemption from providing a return point has been simplified

Circular Economy Minister Lorna Slater said: “Scotland’s deposit return scheme will reduce litter on our streets, massively increase the recycling of drinks containers and help meet our net zero ambitions.

“However, to realise these benefits DRS needs to be delivered in a way that works for businesses, especially for small drinks producers. The changes I have set out will make the scheme easier for industry to deliver – especially for craft producers – while still making sure the vast majority of drinks containers are captured for recycling.

“To move forward with certainty, the UK Government must stop delaying the long overdue exclusion from the Internal Market Act. This damaging Act was imposed on the Scottish Parliament after Brexit without its consent and creates confusion and uncertainty for businesses.

“After that Act was passed, we engaged in good faith, following the agreed process, and have done so for nearly two years now to agree an exclusion. The UK Government needs to at long last issue an exclusion, and recognise the right of the Scottish Parliament to enact legislation in devolved areas without interference.”

Back to the Drawing Board!

YOUSAF ANNOUNCES ‘A FRESH START FOR SCOTLAND’

PRIORITIES OF ‘EQUALITY, OPPORTUNITY, COMMUNITY’ SET

First Minister Humza Yousaf has published a new ‘policy prospectus’, setting out how the government will deliver for Scotland over the next three years – but his big policy announcement was overshadowed by the news that SNP treasurer Colin Beattie had been arrested by police as they continue to investigate the SNP’s finances.

In his first major statement to Parliament, the First Minister said three missions, centred on the themes of equality, opportunity and community, will be central to his government.

Announcing he will seek to reach agreement on a ‘New Deal for Scottish Business’, the statement revealed that the launch of Deposit Return Scheme will be set for March next year, that proposals on alcohol advertising will go “back to the drawing board” and that the Scottish Government will look at ways to use Business Rates to boost business and further support communities.

Titled ‘New Leadership – A Fresh Start’, the prospectus details the key aims the government intends to achieve in each Cabinet portfolio, working with the Scottish Green Party to build on the success of the Bute House Agreement.

equality-opportunity-community-new-leadership-fresh-startDownload

Actions set out by the First Minister and the prospectus document to tackle poverty, build a fairer, greener and growing economy, and improve public services by 2026 include:

  • a ‘New Deal for Scottish Business’ will be sought, with urgent discussion to agree how government can better support businesses and communities using policy levers such as Non-Domestic Rates.
  • an extension of the Deposit Return Scheme launch date to March 2024, from August this year.
  • an explicit commitment to support economic growth for a purpose – to help business and trade to thrive and maximise the opportunity for a fair, green economy.
  • confirmation of a further £1.3 billion investment for the Scottish Child Payment over the next three years
  • improved cancer outcomes through better prevention and diagnostics, including expanded Rapid Cancer Diagnostic Services in Lanarkshire and Borders by June 2023
  • investment of up to £25 million to convert suitable properties into affordable homes for key workers and others, as part of an action plan to increase housing in remote, rural and island areas
  • confirmation of a six-month pilot removing peak-time fares from ScotRail services from October to make rail travel more accessible, available and affordable.
  • the delivery of six new vessels to serve Scotland’s ferry network and a doubling of the charge point network for electric vehicles to at least 6,000
  • reinstating Scotland’s participation in the Trends in International Mathematics and Science (TIMSS) and Progress in International Reading Literacy (PIRLS) studies to increase the availability of internationally comparable data on Scotland’s education performance
  • seeking a new agreement with the Convention of Scottish Local Authorities (COSLA) to support the delivery of shared priorities, and legislation to give councils powers to apply a Local Visitor Levy on overnight stays in commercially let accommodation as additional means to raise revenue
https://twitter.com/i/status/1648362128712126465

The First Minister said: “Scotland is a land of opportunity, I’m very proud of that fact, I’m proud to be a product of that.

“My grandparents came to this country in the 1960s, barely speaking English, little money in their pockets. Despite the challenges they faced, and at times hostility they faced, due to their background, they overcame those barriers and provided a life for their children, and for their grandchildren that I will forever be grateful for.

“It is my responsibility to ensure every family in Scotland has that equality of opportunity, regardless of their background or where they live in Scotland.

“I am optimistic we can achieve that equality of opportunity, and the three missions that I have set out today, will determine the priorities of the government that I lead for the rest of this parliamentary session, and help us to achieve that.

“Together, we will be focused on the delivery, we will ensure that we have affordable, ambitious measures in place, which protect our environment, which protect business prosperity, they improve people’s well-being, and they reduce poverty.

“They will ensure the actions we take over the next three years, stand Scotland in good stead for the next decade to come. And they will use our present, very significant, strengths to deliver a fresh start for Scotland.”

Environmental campaigners are dismayed by the news that Scotland’s deposit return scheme, which was due to launch in August 2023, has been delayed until next year.

The deposit return scheme has already been delayed twice, with its initial launch date set for April 2021. The latest postponement will mean that 2.5 billion more drinks containers will have been littered, landfilled or incinerated than if it had gone ahead as planned.

Hundreds of Scottish producers and businesses, accounting for over 95% of Scottish drinks containers, have already registered to take part in the scheme from August and completed the necessary preparation to do so, including the biggest producers of single use drinks cans in the country.

Kim Pratt, circular economy campaigner at Friends of the Earth Scotland, said: “This delay marks a shameful breaking of promises which will ultimately be paid for by the people of Scotland and the environment. Over 70% of people in Scotland support the deposit return scheme, but the First Minister has decided to put corporate interests and politics before people and the planet.

“The repeated delays by the Scottish Government to deliver this scheme are as damaging as doing nothing. Companies have had five years to prepare, and the majority of them are ready to go as planned in August.

“We are living in a climate emergency, and this simple scheme should be an exciting bit of progress. It’s a concerning start to Humza Yousaf’s leadership.”

Dr Kat Jones, director of APRS, which is running the Have You Got The Bottle? campaign, said:

“Yet another delay to Scotland’s deposit return system should send a chill down the spine of everyone who understands the environmental crisis we face. Both the Scottish and UK governments need to get their act together if a third delay is not to become a fourth or worse.”

Calum Duncan, head of conservation Scotland at Marine Conservation Society, said: “Bottles and cans were littered on 95% of Scottish beaches cleaned and surveyed by our volunteers in 2022. We’re disappointed that, yet again, Scotland’s Deposit Return Scheme will be delayed.

“We know deposit return schemes have huge potential to turn the tide on this kind of pollution, for the benefit of both people and the planet. Scotland’s seas cannot, and should not, be paying the price for our waste.”

The deposit return scheme will work by people paying a fully refundable 20p deposit when they buy a drink in a single-use container made of plastic, metal or glass.

First Minister’s speech – 18 April 2023

Equality, opportunity, community: New leadership – A fresh start 

Drinks producers urged to register for deposit return scheme

First Minister calls on businesses to sign up

The First Minister has encouraged drinks producers to register for Scotland’s deposit return scheme, which will go live on 16 August 2023.

Drinks producers are asked to register with the scheme administrator, Circularity Scotland, in order to participate in the recycling scheme and to help ensure that they meet their regulatory requirements.

The scheme is expected to cut littering by a third, reducing the amount spent by local authorities on litter clean up, and will increase recycling rates of single-use drinks containers from the current rate of approximately 50% towards 90%.

The First Minister has also written today to the UK Prime Minister, reiterating that the UK Government must exclude the deposit return scheme regulations from the Internal Market Act. The Scottish Government first requested an exclusion in July 2021.

The First Minister said: “Scotland’s deposit return scheme will be a major part of our efforts to reduce litter, cut emissions and build a greener, more circular economy. Good progress is being made by industry ahead of the scheme’s introduction on 16 August, and I am aware of the significant private investment that has already been made by many businesses to be ready for the scheme, and the many jobs that are being created to operate it.

“I would strongly encourage drinks producers to register with the scheme administrator, Circularity Scotland. This is a vital step to ensuring everyone who needs to be is compliant with the regulations and is the best way to make sure that their products can be sold without issue in Scotland.

“I also want to reassure drinks producers with concerns about the impact of the scheme. SEPA has made clear that they will take a proportionate approach to compliance. They will work with businesses to help them get ready – advice and guidance, not fines, will be the first step for any business that is clearly taking action but struggling to meet their obligations.

“The Scottish Government will continue to listen to the concerns of small producers and will consider if there is any further action we can take to support them ahead of the scheme going live.”

Deposit Return Scheme support ‘should end delay calls’

Circularity Scotland has today (21st February 2023) announced £22 million of cashflow support measures to help Scotland’s brewers, distillers, importers and drinks manufacturers prepare for the introduction of Scotland’s deposit return scheme.

The package includes:

  • Up front charges removed for lower sales volumes
  • Improved payment terms for lower sales volumes
  • Simple labelling option for niche products, alleviating administrative burden

The support package is particularly designed to help SMEs, who have previously voiced concerns about the impact of the scheme on their business’ cashflow.

To address these concerns, Circularity Scotland is removing the day one and month one charges for all producers, up to a threshold of three million units per year. It is also providing two month credit terms on deposits and fees up to the same volume threshold to reduce the working capital impact on all producers.

The three million unit threshold has been established to ensure that the thousands of smaller scale producers selling in Scotland benefit more proportionately from the cashflow support. This will particularly help companies like craft brewers, wine importers and craft spirit producers. The two month credit terms will be made available to all producers, regardless of their size, ensuring all producers within the scheme are treated equally.

Circularity Scotland has also confirmed that it will be offering the option to use self-adhesive barcode labels for producers placing less than 25,000 units per year of a specific product on to the Scottish market. This will provide a simple and straightforward administrative solution for independent producers and importers for whom the cost of changing packaging to introduce new barcodes could be prohibitive.

David Harris, Chief Executive of Circularity Scotland said: “Circularity Scotland was established by industry to meet their obligations under the deposit return scheme as efficiently and cost-effectively as possible.

“This announcement is further evidence of how we are continuing to innovate and identify additional ways to mitigate the pressure on businesses. We know that smaller producers in particular have been concerned about the cashflow impacts of the scheme, and these measures will address those concerns.

“Circularity Scotland has successfully secured over £100m of third-party funding to establish the infrastructure of the deposit return scheme, with only minimal up-front funding from the very largest producers. This funding approach allows producers both large and small to benefit on equal terms from this investment in world-class infrastructure and leading-edge technology and only pay their share of the costs once the scheme is in operation.

We have already announced reductions in producer fees of up to 40%, while also being able to offer the highest return handling fees of comparable schemes anywhere in the world. These additional support measures further demonstrate our confidence in being able to deliver ongoing operational efficiencies once the scheme has gone live. We are committed to ensuring that the deposit return scheme works for Scotland, is cost effective for business and helps protect our environment for generations to come.”

Circular Economy Minister Lorna Slater said: “This is a big and welcome change that responds directly to many of the concerns that have been raised, particularly those from smaller producers like craft brewers.

“It addresses initial cash flow challenges, and provides a pragmatic and simple solution to the issues raised around barcodes for smaller product lines. This is a package that gives businesses the clarity and confidence they need to be part of Scotland’s deposit return scheme.

“Over the last few months I have been meeting industry regularly to listen to their feedback and this industry-led solution has been designed in direct response to its concerns. I remain committed to a pragmatic approach to implementation between now and the 16 August.

“By working together we can lead the UK in delivering a deposit return scheme which will increase Scotland’s recycling rates from around 50% to 90%, cut emissions, tackle littering and address public concerns about the impact of plastic and other waste.”

Businesses looking for more information on these measures or how they can register for the scheme should contact Circularity Scotland’s customer support team at www.circularityscotland.com or on 0141 401 0899.

Campaigners have welcomed the news that small businesses will be supported to launch Scotland’s deposit return scheme on time this year in August 2023.

Kim Pratt, circular economy campaigner at Friends of the Earth Scotland, said: “The announcement today demonstrates commitment from Circularity Scotland and the businesses they represent to start the scheme on time in August 2023, and we’re pleased to see that support is being given to smaller businesses to address their concerns.

“This announcement should end calls for further delays. To undo the building momentum for the scheme would be counterproductive for producers and retailers planning for an August introduction, as well as risking further environmental pollution from discarded drinks containers.

“It is fundamental to the long-term success of the scheme that the costs of Scotland’s  Deposit Return Scheme come from industry. Part of the purpose of a scheme like this is to make sure the responsibility for cleaning up is held by the companies that are producing the waste, rather than from the public purse, as is currently the case.”

‘Baffled’: Still another year until Scotland’s deposit return scheme

Recycling initiative will help deliver a circular economy

Scotland’s deposit return scheme will go live for consumers on this day in one year’s time (16 August 2023), giving businesses and consumers an easy way to boost recycling – but campaigners are concerned the initiative is falling behind.

The scheme, which will be the first in the UK, will play an important part in Scotland’s journey to a circular economy. Estimates by Zero Waste Scotland suggest that the scheme will reduce emissions by an average of nearly 160,000 tonnes of carbon dioxide a year – the equivalent of 109,000 return flights from Edinburgh to New York.

The 20p deposit will also provide an incentive to reduce littering, helping to cut the number of bottles and cans discarded in streets and green spaces.

The scheme is being delivered by Circularity Scotland Ltd., an industry-led body representing drinks producers, retailers and trade bodies of all sizes. This business-led approach is common among many of the most successful schemes in Europe, include Denmark, Finland, and The Netherlands.

Infrastructure for the scheme is now beginning to be rolled out across Scotland, and businesses of all sizes are being encouraged to act now to make sure they are ready for the scheme launching this time next year.  

Businesses can register with Circularity Scotland, to make sure they receive information that will help them prepare.

The Scottish Environment Protection Agency (SEPA), who are the regulator for the scheme, has also launched a campaign that will help businesses understand their legal responsibilities and the steps they need to take to prepare.

.

Circular Economy Minister Lorna Slater said: “Scotland is leading the way in the UK on delivering a circular economy. By putting in place a deposit return scheme, we are delivering on the public’s desire to see action on plastic and other waste, and making an important contribution to the response to the climate emergency.

“With thousands of return points across the country, it will be as easy to return your empty bottle or can as it was to buy it in the first place. This will help to nearly double recycling rates for the containers included in the scheme, while reducing the amount of litter on our streets and cutting CO2 emissions.

“This scheme is being delivered by industry for industry. By putting businesses in charge, we are making sure that it works for them. With one year to go until the scheme goes live for consumers, I would encourage all businesses and organisations that produce, ship or sell drinks to get involved with the scheme now.”

After delaying its introduction twice, the Scottish Government published a set of milestones to deliver a high-quality scheme next year. However, with significant delays to the first milestone being met earlier this year and no sign yet of a public awareness campaign as promised, campaigners are concerned that this timetable may be slipping.

Kim Pratt, circular economy campaigner at Friends of the Earth Scotland said: “We must change the way we use materials to drastically reduce the impact of our consumption.

“Across Europe, deposit return schemes are well established, successful and popular. They have a direct impact on the climate by reducing the need for new materials, and they help reduce plastic pollution at the same time.

“We’re concerned that the Scottish Government is falling behind with implementation of this important scheme. The public awareness campaign is a crucial part of roll out and must be delivered on time. It’s vital that there are no further delays to Scotland’s deposit return scheme so that we can begin to see the benefits.”

John Mayhew, Director of APRS, which is running the Have You Got The Bottle? campaign, said: “Across Europe and beyond, more and more countries are getting on board with deposit return. Places like Latvia, Malta and Slovakia have introduced their systems at a pace which makes it all the more baffling that Scotland’s launch date is still a year away.

“Deposits will eventually bring major benefits to Scotland in terms of reduced litter, lower emissions, and cost savings for local government, but it is concerning for the rest of the circular economy agenda that such a simple step has proved so difficult for the government to implement here.”

Scotland’s material consumption accounts for 82% of our entire carbon footprint. Each tonne of plastic recycled saves 0.5 tonnes of carbon, recycling a tonne of metal saves 2.5 tonnes of carbon and recycling a tonne of glass saves 0.75 tonnes of carbon.

The Scottish Government has published a delivery plan for the system but has acknowledged that challenges still remain. The complexities of a VAT charge have yet to be agreed with HM Treasury. The scheme administrator, Circularity Scotland, is organised and run by the private sector, which has limited transparency.