Deposit Return Scheme: Retailers call for shake-up after Scotland’s delays

A strategy to boost recycling rates with a Deposit Return Scheme (DRS) has been called into question, with independent retailers saying a shake-up is needed following “extraordinarily poor” guidance for small companies.

Businesses in Scotland have threatened to sue the Scottish government for tens of millions of pounds after its troubled Deposit Return Scheme, set to be implemented this summer, was delayed until October 2025.

The delay was welcomed by industry bodies for bringing Scotland’s scheme in line with UK-wide plans, but Mo Razzaq, national vice president of the Federation of Independent Retailers, told Speciality Food retailers were losing confidence.

“Confidence in Deposit Return Schemes has been severely affected by the failure of the Scottish government scheme, including the failure to pay compensation to retailers who invested in machines and shopfitting for the aborted launch,” he said. Many retailers and producers had invested heavily in preparation for the scheme, including buying machines for returns and preparing barcodes on products. Lorna Slater, circular economy minister in Scotland, previously said around £300m had been spent by drink producers, retailers and other businesses in the supply chain. 

Will Docker of Balgove Larder in Fife told Speciality Food the DRS plan had been “extremely unclear”.

“There is absolutely no doubt that [a Deposit Return Scheme] is very necessary, and there is no question we’re dragging our heels massively. But the implementation, the advice and the detail was incredibly poorly thought through,” he said.

Despite seeking advice through various meetings with Circularity Scotland – the not-for-profit company administering the scheme – Will said the lack of detail around key elements, such as admin and processing, was causing “panic” for small retailers, including members of local food group Food From Fife, which he chairs. “We’ve all had an extremely tough three years, and we want to crack on and try and make the next period as positive as possible. But not getting full detail was very challenging,” he said.

Future of DRS called into question
A public spending watchdog has also criticised the Department for Environment, Food and Rural Affairs (Defra) over the DRS scheme, saying its effectiveness to reduce litter from drinks containers was “uncertain”.

“Defra does not have effective long-term plans for how it will achieve its ambitions for reducing waste,” said Gareth Davies, the head of the National Audit Office. “Defra must now establish a clear and coherent plan for its work on waste and resources, addressing the weaknesses in the reforms already in progress. If Defra takes these steps, it will be in a much stronger position to achieve its ambitions.”

However, questions remain over how the plans will be introduced in England, Scotland and Wales. Jamie Delap of the Society of Independent Brewers (SIBA), welcomed the news that the delay in Scotland would bring its DRS in line with the whole of the UK in a more joined-up scheme, but he warned, “[There] are still questions about differences in Wales and its inter-operability.”

Some industry insiders are even calling for the DRS plans to be dropped completely, according to reports in The Grocer.

For fine food retailers, many of whom champion a locally focused and sustainable approach, a workable DRS plan would be welcome. “As many other countries have successfully brought in Deposit Return Schemes, there is no reason the UK cannot join their ranks,” Mo said. 

Will agreed, calling on the government to look to neighbouring countries who already have similar models in place. “It seems like we’re trying to reinvent the wheel,” he said. “I have absolute respect for how challenging implementing these sorts of policies is, but I have very little respect if the guidance is poor, and my feeling as a retailer and hospitality provider was that the guidance was extraordinarily poor,” he continued.

In order to make the scheme a success, Will said a big shake-up is needed, and the government must seek industry advice. “Learning from mistakes is vital, and this was a huge error that has cost a lot of people.”