Scotland's bottle deposit return scheme delayed again

Automatic recycling machines are found in every supermarket in Denmark and a similar approach is being planned for Scotland

Scotland's bottle and can deposit return scheme looks set to be delayed again, with ministers blaming Covid-19, Brexit and a row over tax rules.

The government had hoped the "flagship" scheme to boost recycling via a 20p deposit on single-use drinks containers would launch in April 2021.

This was then put back to July 2022 after the Covid-19 pandemic hit.

Circular economy minister Lorna Slater told MSPs she wanted the scheme up and running "as soon as possible".

But she did not put a timetable on the process despite questions from opposition politicians, saying officials were "working hard to agree a final timescale and milestones for delivery".

• What's holding up Scotland's bottle deposit scheme?

The Scottish government originally proposed setting up a deposit return scheme (DRS) in 2017, saying it represented "a step change in our level of ambition" for recycling.

It would see 20p added to the price of a single-use drinks container bought from a shop, with the customer getting the deposit back when they return to empty bottle or can to the retailer.

However plans for it to go live in April 2021 were pushed back to July 2022 due to the Covid-19 pandemic, and to "give businesses more time to prepare their premises for the scheme".

And Ms Slater told MSPs on Wednesday that a number of other issues were holding up the system.

Shoppers would be charged a refundable extra fee when buying single-use drinks

She said: "The global pandemic and Brexit had a major impact on businesses, particularly retailers and those involved in their supply chains, and challenges persist today.

"Unfortunately the very businesses which will be most instrumental in making the DRS operate - including hospitality businesses, small convenience stores and small breweries - were and still are badly affected by the pandemic and the mismanagement of Brexit."

The Green MSP also said there had been a "lack of clarity" from the UK government over the tax status of the 20p deposits, saying she had only heard from the Treasury on Tuesday that "they do not see a route to remove VAT from deposits".

Ms Slater said this was "deeply disappointing", but said she was working with officials to resolve the issue.

'Dismal record'

Scottish Conservative MSP Maurice Golden said Ms Slater had "blamed everyone and answered no-one when questioned about the hold-up in the deposit return scheme".

He added: "The SNP-Green government has a dismal environmental record, after missing targets three years on the trot. They must get their act together or the DRS will be added to the litany of failure."

Labour's Mercedes Villalba said VAT issues had not been a barrier to the implementation of deposit return schemes in other European countries.

She added: "That this delay is indefinite demonstrates how low down the government's agenda this vital legislation is."

And Lib Dem Liam McArthur asked why the government was "making such a mess of introducing DRS in Scotland", given international examples of working systems.

In May - before the Greens had joined the SNP in government - Ms Slater had complained on Twitter that the scheme had been "repeatedly" delayed, saying "it needs doing".

Environmental group Greenpeace was critical of her position, adding that another delay would mean "millions more cans and bottles needlessly dumped and burned".