Impact of Brexit on Scottish Trade

New figures show possible cost of increased trade barriers

Analysis published yesterday by the Office of the Chief Economic Advisor has estimated Brexit trade barriers could impact Scotland’s economy by £4 billion.

This estimated economic cost is from the reduction in trade alone – not counting changes to productivity, investment or migration.

Business Minister Richard Lochhead said the report demonstrated the urgent need to reverse the damage of Brexit to boost living standards and revenue for the NHS.

According to the Trade Modelling Report, Scottish exports could be lower by 7.2% or £3 billion compared to continued EU membership.

The chemical and pharmaceutical sector is estimated to be one of the hardest hit by post-Brexit trade barriers, with an estimated 9.1% reduction in output, followed by the computer and electronics sector with an estimated 7.7% fall. The 4.9% output drop estimated for the agrifood sector represents a loss of £827 million.

Business Minister Richard Lochhead said: “On the eve of the fifth anniversary of Brexit, these new figures highlight the urgent need to change course to boost the economy and increase public revenue for the NHS.

“This is the latest in a long line of studies highlighting how badly Brexit continues to impact Scotland and should cause the UK Government to consider its approach to economic growth.

“The Scottish Government has been clear that Scotland’s place is in the EU and the huge European single market. But we are also a voice for greater co-operation with the EU right now and we urge the new UK Government to forge a much closer relationship with our fellow Europeans.”  

Scottish Government’s Brexit Trade Modelling Report

Action to reduce prison population

Legislation to come into force

A new law to bring about an immediate and sustained reduction in the prison population will take effect from 11 February.

The Prisoners (Early Release) (Scotland) Act – passed by the Scottish Parliament in November 2024 – will change the release point for those serving prison sentences of less than four years from 50% of their sentence to 40%.

There will be no change to the release point for prisoners serving sentences for domestic abuse or sexual offences.

It is expected this change will bring about a 5% reduction in the sentenced prison population compared to if no change had been made. At the point of commencement the change will apply to eligible prisoners already serving sentences of less than four years and those sentenced from then on.

This will mean that an estimated 260-390 short-term prisoners who have served 40% of their sentence will be released by the Scottish Prison Service in three tranches over six weeks.

The commencement regulations laid in the Scottish Parliament today, which bring the Act into force, set out this will be done on:

Tranche 1: 18th – 20th February

Tranche 2: 4th – 6th March

Tranche 3: 18th – 20th March

The Bill does not make any changes to the Victim Notification Schemes. Victims who have already signed up to the Victim Notification Scheme (VNS) will be told automatically by the Scottish Prison Service if there is a change to the date of release of the prisoner in their case.

Victims who are not signed up to the VNS, can also contact the Scottish Prison Service directly to receive information. Victims will also be able to nominate Victim Support Scotland, Rape Crisis Scotland, ASSIST or Children First to receive information about prisoner release on their behalf.

Justice Secretary Angela Constance said: “The prison population has significantly grown in recent years and I recognise that the impact is being felt in prisons and across the justice system.

“While not a complete solution, this Act will bring sustained reduction to prisoner numbers so the prison estate can continue to function effectively.

“We need the prison system to focus on those who pose the greatest risk to the public and provide a range of support to help reduce reoffending and integration back into the community. That is why this Act is backed by both the Prison Officers’ Association and the Prison Governors Association.

“I absolutely recognise that the release of prisoners can be distressing for victims of crime and that changing the release point for short-term prisoners has the potential to raise questions and cause concern.

“That is why we will continue to work closely with victim support organisations to ensure that accessible information is available to victims on the change to the release point for short-term prisoners.”

In November 2024, the Scottish Parliament voted in favour of the Prisoners (Early Release) (Scotland) Act.

Investing in community energy

£9 million for community energy generation and energy efficiency improvements

Communities across the country will benefit from £9 million Scottish Government funding for measures to help cut energy costs and support the development of locally-owned renewable energy projects.

The funding – which builds on the successful Community Energy Generation Growth Fund pilot – will be used to scale up community energy projects across Scotland as part of a drive to cut carbon emissions, create local jobs, reduce energy costs and stimulate local investment.

It includes:

  • £3.5 million for a new Community Energy Generation Growth Fund to support communities to develop their own renewable energy projects – such as installing wind turbines and solar panels
  • £4.5 million to help local groups decarbonise their buildings through the installation of renewable measures such as heat pumps and solar PV panels, alongside energy efficiency measures, that reduce energy costs and emissions
  • £1 million for capacity building and development support to help develop and progress early ideas for new community energy projects

Announcing the funding at the annual Community and Renewable Energy Scheme (CARES) conference in Glasgow, Acting Climate Action Minister Alasdair Allan said: “Communities must be at the heart of our transition to net zero and must see the benefits of this just transition.

“This transition is about both the outcome – a fairer, greener future – and the way we get there in partnership with those most likely to be impacted by these changes.

“That is why I am pleased to announce this £9 million investment from the Scottish Government will be available to communities through CARES over the next year.  

“Scotland has diverse communities – from those in our cities, to those in rural areas and on our islands. I am committed to supporting all these communities to take part in and benefit from the growth of Scotland’s energy sector.” 

Chief Executive Officer of Community Energy Scotland Zoë Holliday said: “The Scottish Government’s continued commitment to community energy is welcome news for groups across Scotland.

“The reintroduction of funding for stand-alone generation projects has the potential to lever in significant funds locally and play a key role in the just transition.

“We are also delighted to see a new fund focussing on capacity building for communities; we have been calling for such support to ensure that when it comes to the energy transition, no community is left behind.”

More information about Community Energy Generation Growth Fund

Creative Scotland announces Multi-Year Funding Outcomes for arts and culture organisations

  • A record number of cultural organisations to receive stable, year-on-year funding to deliver culture and creativity for Scotland’s people 
  • All organisations currently funded by Creative Scotland to receive a significant uplift after years of standstill funding 
  • An additional 141 organisations will receive a multi-year funding commitment for the first time 
  • Significant increase in community-focused organisations being supported, alongside established cultural organisations, better representing Scotland’s geography and diversity 
  • Overall funding to the portfolio will increase further in 2026/27 
  • This cultural shift has been made possible thanks to a significant budget commitment from the Scottish Government 

Today, Thursday 30 January 2025, in a significant moment for culture in Scotland, Creative Scotland has announced the largest portfolio of cultural organisations ever to be supported on a multi-year basis.​ 

The recent uplift in Grant-in-Aid funding from the Scottish Government, releasing the largest budget ever available to Creative Scotland, enables more than £200m in support to be provided to 251 organisations over the next three years. 

Further to this, 13 other organisations, will be supported by a £3.2m Development Fund, with a view to them joining the Multi-Year Funding portfolio in 2026/27. 

Over half of the organisations in the portfolio are being offered a multi-year funding commitment for the first time, reaching more parts of Scotland, and more parts of our society, than ever before. 

Those organisations which have an existing regular funding relationship with Creative Scotland will receive an average uplift of 34% in their funding in 2025/26, increasing to an average of 54% from 2026/27, bringing certainty and stability. 

North Edinburgh Arts is one of the organisations to receive three year funding. They said: ‘We are delighted to share that North Edinburgh Arts has been awarded Multi-Year Funding from Creative Scotland! We are looking forward to re-opening our venue in the coming weeks, so the confirmation of Multi-Year Funding has come at the ideal time.

“NEA’s venue is owned, used, and loved by our community. The stability of long-term funding will allow us to plan with confidence and make a real difference for the hundreds of artists, participants, volunteers, and visitors coming through our door.”

Hidden Door also received good news. They announced: “We’re proud to be one of 13 organisations to receive Creative Scotland development funding with a view to joining their Multi-Year Funding portfolio in 2026 ❤️

This is a huge vote of confidence in our support for emerging artists, connecting audiences with inspirational cultural experiences.

‘We’re acutely aware of the challenges facing the creative sector, and we know that not everyone will have received good news today. But we warmly congratulate all those who secured funding, and we look forward to collaborating with many more wonderful projects in the years to come.’

Together, the organisations in this portfolio deliver cultural and creative work of quality, breadth and depth to audiences across Scotland and internationally and the portfolio is more representative of Scotland’s geography, diversity, people and communities than ever before. All this underlines Scotland’s reputation as a thriving creative nation where culture is valued and developed for all.  

​Importantly, the portfolio also provides significant support to Scotland’s local and national economy, through direct employment, by creating opportunities for freelancers, and by supporting individual artists and creative practitioners of all types. 

Robert WilsonChair of Creative Scotland said: “This is an extremely positive moment for culture in Scotland, bringing with it a renewed sense of stability and certainty to Scotland’s culture sector. 

“Thanks to the vote of confidence in the culture sector, demonstrated by the recently announced budget from the Scottish Government, Creative Scotland can offer stable, year-on-year funding to more organisations than ever before.  

“I’m particularly pleased that this funding will increase further from next year, enabling even more fantastic artistic and creative work to be developed here in Scotland.  

“Stable, long-term funding for as many organisations as possible is the underlying principle of the Multi-Year Funding programme, and we are delighted to be able to bring it to fruition.  

“This funding means that we are able to bring so many new, community focused organisations into the portfolio, while also providing significant increases to those more established organisations which have been on standstill, regular funding for so many years. 

“I’m also very pleased to be able to offer 13 further organisations significant amounts of development funding, to enable them to come into the portfolio in its second year. 

“This signals a significant moment of positive change for Scotland’s cultural community, and I hope that, after the deeply challenging time of the pandemic, and the difficulties that have faced the sector in the subsequent years, that now is the time that we can look forward with confidence and the Scottish culture sector can get on with what it does best, producing outstanding art and creativity for everyone to enjoy.” 

Download short audio statement from Robert Wilson, Creative Scotland Chair.

Angus RobertsonCabinet Secretary for Culture said: “This is a foundational moment for culture and the arts in Scotland. More organisations than ever, in more parts of the country will benefit from the stability of Multi-Year Funding with the number of funded organisations more than doubling, from 119 to 251. 

“Funded as part of a record £34 million increase for culture in the draft 2025-26 Scottish Budget, this significant increase in both the number of funded organisations, and the level of grant funding they will receive, has the potential to be truly transformational. It secures the future of key cultural organisations of all sizes across Scotland, which are major assets to our communities and our economy, supporting thousands of jobs and creating new opportunities for freelancers, artists and other creative practitioners. 

“It means 251 culture organisations across Scotland, from Argyll and Bute to Shetland, Na h-Eileanan Siar, and the Borders, will receive Multi-Year Funding from April this year and a further 13 have the possibility of doing so from 2026-27.

“I am also reassured that the remaining unsuccessful applicants will all be offered bespoke support from Creative Scotland to adapt their business models.”

Following the ministerial statement in the Scottish Parliament, Labour Lothians MSP Foysol Choudhury welcomed  the funding: “This funding decision is a step forward for Scotland’s cultural community. It  reflects the collective determination of local groups, artists, and advocates who have worked  tirelessly to highlight the importance of the arts in our society.

“I am proud to have played a  role in advocating for multi-year funding, and I hope this provides some temporary relief to  the culture sector. Festivals  have struggled with standstill government funding for years, stunting their growth. The  culture sector should not just be fighting for its survival.”

The list of organisations being awarded Multi-Year Funding, and their award for the next three years, is available on our website

The list of organisations being offered development funding, and their conditional award for the next three years, is also available on our website

Improving lives for people with learning disabilities

Fund to support third sector organisations

People with learning disabilities will be supported to reach their full potential through a £1.6 million fund.

The Learning Disability Support Fund will be available to third sector organisations to enable them to promote equality and inclusion and improve access to health services and social activities for people with learning disabilities.

The fund will run for 30 months from October 2025, with a total of £325,000 available for the first year and £650,000 per year for the following two years. Organisations can apply for grants of between £75,000 and £250.000.

Minister for Wellbeing, Social Care and Sport Maree Todd said: “The last 30 years have seen enormous changes in how people with learning disabilities are supported in society, however we recognise there is more work to be done.

“We know the third sector plays a crucial role in improving the lives of people with learning disabilities and this fund will support organisations to enable those they work with to lead fulfilling, independent, and active lives as equal citizens.

“The grants will be used to provide people with education and information on matters such as accessing health services and developing safe relationships.

“In developing the fund, we have taken into account the views expressed by people with learning disabilities in recent consultation and research and we will work closely with the third sector to ensure it makes a difference.”

Celia Tennant, Chief Executive Officer at Inspiring Scotland said: “We are pleased to be managing the application process for the new phase of the Scottish Government’s Learning Disability Support Fund.

“We know from the past few years managing the Inspiring Inclusion fund the positive impact that empowering third sector organisations can have to deliver support for people in Scotland with learning disabilities to lead happy, healthy lives and create a more inclusive society.”

The Learning Disability Support Fund replaces the Inspiring Inclusion Learning Disability Fund.

Brexit cost: higher energy bills and lower investment

Scottish Government calls for closer energy links with Europe

The Scottish Government is calling for closer co-operation with Europe to help lower energy bills and boost investment.

Ahead of upcoming UK Government talks with the EU the Scottish Government has published a report, identifying  a number of opportunities to more closely align with the European Union on energy matters.

These include:

  • accelerating the adoption of more efficient UK-EU electricity trading arrangements to bring down energy costs for consumers
  • linking the UK and EU Emissions Trading Schemes (ETS) to help reduce costs and barriers to trade

Estimates from the UK energy industry predict that unless the UK moves toward closer cooperation with the EU on energy and climate, it may lead to additional costs of up to £10billion in 2024-25, through higher energy bills and lower Treasury revenues.

The Scottish Government’s wants Scotland to be an EU member state, however the report published today sets out immediate actions which would rebuild closer collaboration with the EU on energy and climate matters and offset some of the damage caused by Brexit.

Acting Cabinet Secretary for Net Zero and Energy Gillian Martin said: “As we approach the fifth anniversary of Brexit, the costs to the people of Scotland are becoming ever clearer.

“The best future for Scotland is to be a member state of the EU. But we will always be a voice for closer co-operation with our fellow Europeans – in particular around issues which impact us all such as lowering energy bills and driving up investment in renewables.

“This paper highlights the key areas where working together is vital for achieving our shared ambitions – driving economic growth, reducing costs, strengthening energy security and substantially contributing to our shared climate goals.

“We have a pivotal role to play and stand ready to work collaboratively with the UK Government and wider partners to re-build a closer relationship with Europe in this space.”

Read the Closer energy and climate cooperation with the EU report

Energy UK Explains: the cost of the UK-EU relationship for energy – Energy UK

Scottish Government: New approaches to eradicating child poverty

Wrap-around support delivering improved outcomes for families

Lessons learned from innovative work with families in Inverclyde are helping deliver new approaches to eradicating child poverty. 

Social Justice Secretary Shirley-Anne Somerville will visit Home-Start Renfrewshire and Inverclyde in Greenock today (Wednesday 29th January) to see work funded under the Scottish Government’s Child Poverty Practice Accelerator Fund, which is helping to reshape services locally and elsewhere in Scotland. 

The Social Justice Secretary will meet staff at the project as well as parents who have benefited from the work which focuses on providing early intervention to support families, particularly those with children under five and those affected by poor mental health.  

Learning from the project is supporting Inverclyde’s Fairer Futures Partnership, which is supporting local services to test and improve how they deliver services to promote family wellbeing, maximise incomes and support people towards education and into sustained employment.   

Ms Somerville said: “Eradicating child poverty is the Scottish Government’s top priority and a national mission.   

“I’m keen to hear more about how whole family, person-centred support is being developed in Inverclyde through the Child Poverty Practice Accelerator Fund and the Fairer Futures Partnership. 

“Through close partnership between Home-Start and Inverclyde Council, this project provides holistic support so that families can maximise their household incomes, and parents can improve their employment prospects through upskilling and volunteering. Putting this kind of vital support in place means that we don’t just help families in a  crisis but enable them to thrive in the longer term. 

“The Child Poverty Practice Accelerator Fund was set up to support local areas to test new ideas and innovate to improve local approaches to eradicating child poverty. I’m pleased to  have the opportunity to learn more about how this funding is informing Inverclyde’s overall approach to supporting families out of poverty.” 

First Minister sets out major increase in NHS capacity

‘Protecting, strengthening and renewing the NHS’

People across Scotland will have better access to NHS treatment through increased capacity, expanded primary care services, enhanced use of digital innovations and a range of other measures, First Minister John Swinney announced yesterday.

Speaking to representatives from across the health and social care sector, the First Minister set out action to drive down waiting times and reduce pressure on frontline services.

The First Minister was joined by Health Secretary Neil Gray and announced a range of actions including:

  • A substantial increase in capacity, with 150,000 additional appointments and procedures per year
  • Increased investment in primary care, making it easier for people to get appointments with their GP
  • Improved use of data and new digital innovations including the roll-out of a Scottish health and social care app – a ‘Digital Front Door’ to the NHS for patients

The First Minister said: “Protecting, strengthening, renewing our National Health Service – that is a goal I think we can all get behind. A real focus of common purpose.

“That requires action from me, as First Minister, from my Health Secretary Neil Gray, and from my Government. We can offer the leadership and direction – as the measures outlined today seek to do.

“So, today, we commit to a substantial increase in capacity in order to significantly reduce people’s waits.

“Our plan will ensure that a greater proportion of new NHS funding goes to primary and community care. GPs and services in the community will have the resources they need to play a greater role in our health system.

“This increased investment will result in GP services that are easier for people to access. That is important in terms of people’s confidence in the health service – but equally, it will make it more likely that health issues are picked up quickly and dealt with earlier.

“Our National Health Service is there when we need it. No other public institution supports us with so much care through life’s biggest moments. We must support it in return.

“The approach I set out today charts our course to do that. It addresses both the challenges and the opportunities. It sets the NHS on a path of modernisation and renewal.”

Improving Public Services and NHS Renewal – First Minister’s speech – gov.scot

Fraser of Allander: What next for social care in Scotland?

HOW STRONG IS THE SCOTTISH LABOUR MARKET?

LAST WEEK the Scottish government confirmed that plans for a National Care Service (NCS) in Scotland have been scrapped in favour of an advisory board and smaller, more targeted reforms (write FRASER of ALLANDER INSTITUTE’s MAIRI SPOWAGE and EMMA CONGREVE).

The decision came after months of declining support from key organizations and stakeholders including COSLA, key trade unions and representative bodies for social care providers in Scotland.

Beyond the wavering support for the NCS plans, there is clear support for social care reform, particularly in enhancing access to and the quality of services.

Our interest in the National Care Service, and wider social care reform stems back to 2022, in which we conducted analysis of the NCS bill published in June of that year. Following this work, published in August 2022, we engaged with a number of stakeholders across the private, public and third sector.

Among concerns around governance and funding of the NCS, one of the key concerns from stakeholders we engaged with was the lack of good quality and timely data that is crucial to ensuring that any reforms to social care are well informed. In particular, the need to better understand what future levels of social care demand might be, the workforce requirements to accommodate this, and the associated expenditure on social care.

Our concerns about the lack of investment in social care research were highlighted in our response to the Wave 2 consultation. The Scottish Government has not commissioned any work in this area, and we have not been able to find independent funders willing to fund work of this nature in Scotland.

It is our view that projections of demand and cost of the current service, and any future reforms, is urgently required.

New labour market data published

The latest data on the labour market in the UK was published last week. There are many documented issues with the data at the moment due to the challenges faced by the Labour Force Survey, which means the headline figure are no longer considered accredited Official Statistics.

If you can set that aside for a moment, the headline results show on the surface a strong Labour market in Scotland, with high employment (74.1%) and low unemployment (3.8%). Inactivity rates remain slightly higher than the UK at 22.9%.

There are a number of other data sources published alongside the LFS data which is used to supplement our understanding of what is going on in the Scottish economy. One of these is the payrolled employment data, known as the PAYE Real-Term Information, which is published every month by the ONS. This draws on administrative records, and so is likely to be more reliable in terms of employment (although, of course, tells us nothing about unemployment or inactivity).

This data shows that payrolled employment is almost 3% higher in Scotland than pre-pandemic levels. However, we had a look at replicating the sectoral breakdowns in this interesting piece by think.ing, which looks at government-dominated sectors vs the rest.

Chart: Payrolled employment in all sectors, government dominated sectors (public administration, health and education, and total excluding government, Scotland, January 2020=100

Source: ONS

This shows that once the government dominated sectors are excluded, payroll employment has been falling since March 2024, and is now almost back at the levels seen in January 2020. In contrast, government dominated sectors are 8% about pre-COVID levels.

Given some of the challenges facing the private sector in the first half of 2025, including large increases in employer National insurance contributions which will come in in April, the trend in private sector employment is concerning, and points to a weakness masked if we just look at employment in total.

However, it is worth emphasising again that this is just payrolled employment, and does not cover self-employment.

UK Government to ‘clean up communities’ with deposit return scheme for plastic bottles and cans

The Westminster Government has today (Monday 27 January) pledged to end the throwaway society and clean up Britain, as it implements legislation for the deposit return scheme for drinks containers in England and Northern Ireland. 

Once the scheme launches in October 2027, consumers will have a financial incentive to return empty containers to a collection point, such as at their local supermarket, so that the bottle or can will be recycled. 

Used in more than 50 countries worldwide as a common-sense means of encouraging people to recycle more single-use bottles and cans, a DRS sees people being paid back for returning the container.  

Countries such as Germany, Sweden and the Republic of Ireland have successfully implemented schemes, ensuring valuable materials are collected, recycled and made back into new drinks containers – a truly circular approach easily grasped by the public. The average return rate for European countries with a DRS is 90%, according to global eNGO Reloop, with Germany showing the best results at 98%. 

Introducing such a scheme in England, Northern Ireland and Scotland is a simple yet hugely effective way of addressing problems with rubbish building up on our streets and in our rivers and oceans, while also ensuring the public gets money back on their bottle.  

Across England, Northern Ireland and Scotland, consumers buy an estimated 30 billion single-use drinks containers each year – including 12 billion plastic drinks bottles and 13 billion drinks cans. An estimated 6.5 billion single-use drinks bottles and cans per year go to waste rather than being recycled, with many ending up littered. Research from the Marine Conservation Society shows 97% of surveyed beaches were polluted with drinks-related items in 2023. 

Encouraging everyone to get involved in recycling, the DRS will be introduced in October 2027, with 150ml to three-litre single-use drinks containers made from plastic and metal included in the scheme. 

Delivering these reforms and driving investment in the recycling sector delivers on the Government’s Plan for Change through kickstarting growth, ensuring economic stability, greater efficiency, and jobs fit for the future. 

Circular Economy Minister Mary Creagh said: This Government will clean up Britain and end the throwaway society.  

“This is a vital step as we stop the avalanche of rubbish that is filling up our streets, rivers and oceans and protect our treasured wildlife. Turning trash into cash also delivers on our Plan for Change by kickstarting clean growth, ensuring economic stability, more resilient supply chains, and new green jobs.

Northern Ireland’s Agriculture, Environment and Rural Affairs Minister Andrew Muir said: “I have ambitious goals to protect our climate, drive green growth and reduce unnecessary waste. The creation of a Deposit Return Scheme plays a key part in delivering those goals. 

“The introduction of the new parliamentary regulations is a significant step in that process and signals our commitment to move forward together to make those ambitions a reality.

“New legislation for England and Northern Ireland has now come into force, enabling the appointment of the scheme administrator – known as the Deposit Management Organisation – in April 2025. This will be a not-for-profit, industry-led body responsible for the administration and day-to-day running of the scheme.    

With Scotland’s own regulations also progressing, this marks a major step forward for the introduction of the scheme across the three nations.   

The three governments will ensure the scheme is implemented effectively, working closely with businesses to provide the infrastructure and investment to make it a success.   

The Scottish Government first announced it’s intentions to introduce our own Deposit Return Scheme back in September 2017, but plans were scuppered. Holyrood has yet to comment on the UK Government’s announcement this morning.

Allison Ogden-Newton OBE, Chief Executive of environmental charity Keep Britain Tidy, said: “A Deposit Return Scheme really is a silver bullet that will get plastic drinks bottles and aluminium cans out of our parks, off our streets and away from our rivers and seas.  

“Depressingly we litter, burn or bury millions of drinks containers each and every day. This legislation will end all that, save the taxpayer millions in clean-up costs and give recycling a real shot in the arm.  

“Backed and paid for by producers, this method of retrieval and recycling is tried and tested the world over so at Keep Britain Tidy we are putting out the bunting that this government is committed to make it happen, for us all.”

Stephen Moorhouse, Vice President and General Manager of Coca-Cola Europacific Partners GB Business Unit, said: “We’ve been supportive of launching a DRS across the UK for a number of years as they are a proven way of increasing recycling, reducing waste and tackling litter.

“Therefore, we welcome the clarity provided by the regulation for England and Northern Ireland and are encouraged by recent developments that will ensure an aligned scheme with Scotland, despite wider challenges around a UK-wide approach. 

“Delivering to the timelines will be challenging but achievable, and now is the time for industry to roll up its sleeves to create a well-designed system that works for businesses, shoppers and the environment.”

Association of Convenience Stores chief executive James Lowman said: “We are pleased to have certainty on the DRS regulations so local shops can start to prepare for October 2027 and our communities can realise the benefits of reduced litter and higher quality recycled materials.  

“Now the real work begins to make the deposit return scheme a success through cross-industry partnership and a planned network of return points that work for customers.”

Sandy Luk, Chief Executive at the Marine Conservation Society, said: “Today marks a fantastic win for our seas, as MPs voted in favour of a deposit return scheme in England and Northern Ireland.

“With plans already in motion in Scotland and the Welsh Government exploring an ambitious scheme to include reuse, this is a great step towards schemes starting across the UK in October 2027.  

“Last year, 97% of surveyed UK beaches were polluted with bottles and cans, posing threat to marine life like seabirds and seals. Deposit return schemes will not only boost recycling and move us towards a circular economy where nothing is thrown away but also significantly reduce this kind of beach pollution.  

“We’re excited to support governments and industry in launching these schemes as soon as possible.”

Hitting this milestone is another big step forward for the Government’s collection and packaging reforms, which together will support 21,000 new jobs and stimulate more than £10 billion of investment in recycling over the next decade. 

The action to clean up Britain doesn’t end there – there is more to come as the Government moves to ensure the throwaway society is ended for good.  

Legislation has been laid to ban the sale of single-use vapes from 1 June 2025 and prevent the waste of precious resources – eNGO Material Focus estimates almost five million single-use vapes were either littered or thrown away in general waste every week in 2023.  

In December 2024, the Government moved to stop recycling rates stagnating and the reliance on the burning of household waste by announcing that new waste incinerators will only receive planning approval if they meet strict new local and environmental conditions.  

The Government has also announced that a £15 million government fund will help deliver thousands of tonnes of food from farms which would otherwise go to waste to those who need it most.