Out-Law Analysis 2 min. read

Scottish deposit return scheme a victim of UK regulatory divergence


The postponement of the Scottish Government’s flagship deposit return scheme (DRS) is only the latest example of the challenges caused by divergent approaches to food and drink regulation in Scotland and the rest of the UK.

The Scottish Government has announced that its DRS, initially scheduled to launch in March next year, would be delayed until October 2025 at the earliest. The recycling reform will place a 20p charge on drinks bottles and cans which can be redeemed by customers if they return the containers to ‘reverse vending machines’ operated in larger stores, shopping centres and community hubs.

The UK government approved a partial exemption to the Internal Market Act for the Scottish DRS last week, but insisted that glass bottles must be excluded, meaning that the scheme would only cover PET plastic, aluminium and steel cans. The Scottish Government said the decision by UK ministers meant it could no longer give Scottish businesses the assurances they needed over how the DRS would operate. 

It added that it had received “overwhelming feedback” from producers, retailers and hospitality that the exclusion of glass and other as yet unspecified conditions required by the UK government made it impossible for them to prepare for a DRS launch in March 2024. Circular economy minister Lorna Slater told MSPs yesterday: “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.”

Calorie labelling

Calorie labelling has been a requirement for large businesses operation in the out of home food sector in England and Wales since April 2022. While not a requirement in Scotland, many of the large businesses affected have, perhaps unsurprisingly, decided to provide the same information for their supply points north of the border too.

To do otherwise would almost inevitably result in increased costs for the businesses concerned. The Scottish Government has acknowledged the issue for food businesses operating in England and Scotland but has decided that more preparation will be required before ministers will mandate similar labelling rules.

In a statement it said it was “committed to assessing the impact of our policies and are reflecting on all the responses that have been gathered, including the views of people who are affected by eating disorders.” The Scottish Government added that it would hold further discussions with the hospitality sector before making a decision on the measures.

Multibuy restrictions

The Scottish Government has also consulted on restricting the promotion of less healthy food and drink, including buy-one-get-one-free and other ‘multibuy’ deals. Last May the UK government announced a delay to the introduction of its own restrictions on multibuy deals and advertising for foods high in fat, salt or sugar (HFSS) in England.

It said the delay came in light of the “unprecedented global economic situation” causing higher-than-expected energy and goods prices and leading to increased costs affecting businesses and consumers. The change would also give industry more time to prepare for the restrictions on advertising and allow ministers to monitor the impact of the ban on the cost of living.   Location restrictions that apply in several areas of stores came into force in England and Wales in October 2022.

The Scottish Government has since decided that introducing new primary legislation to restrict the promotion of less healthy food and drink is not required. Instead it plans to consult on regulations designed to encourage healthier options and make it easier for people to spend less and make healthier choices. That consultation is expected this autumn.

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