Delivering the Deposit Return Scheme (DRS) by October 2027 will be even tougher for Scottish retailers and their English and Northern Irish counterparts, following Wales’ announcement that it will not proceed with a UK-wide initiative. Its decision to abandon the latter in favour of running a separate DRS scheme has been met with disappointment and concern by the UK’s retail and food industries.
In a written statement published on 18th November, Deputy First Minister of Wales, Huw Irranca-Davies, said: “We have been working to initiate a joint process to appoint the Deposit Management Organisation for our respective schemes later this month. However, in the time available it has not been possible to address the issues to the operation of devolution caused by the United Kingdom Internal Market Act 2020, inherited by the UK Government from the previous administration. This unfortunately means that we are not able to proceed with the joint process or notify the WTO in relation to the scheme at this point.
“As a Government, we remain committed to bringing forward a DRS which will deliver for Wales by supporting our ongoing transition to a circular economy. We will therefore continue our active engagement to develop a scheme that supports the transition to reuse for all drinks containers including those made from glass.”
The announcement means that there will be two separate schemes set up in the UK, working on different timelines and management systems. Under the Welsh scheme, there will be a greater focus on the reuse of materials.
Association of Convenience Stores (ACS)chief executive James Lowman said: “We are extremely concerned that the Welsh Government is doubling down on insisting on a different approach to a DRS (deposit return scheme) than the rest of the UK. A unified approach across the UK is best for consumers, retailers and producers, and has the best chance of achieving meaningful change in recycling rates. The Welsh Government’s separate approach will be confusing for everyone involved and disruptive to the delivery of DRS across the rest of UK.”
The British Retail Consortium, The Food and Drink Federation, ACS and The Industry Council for Packaging and Environment issued the following statement:
“The decision by the Welsh Government to step away from the four nation approach to the Deposit Return Scheme (DRS) is extremely disappointing. With industry preparing to invest billions in a UK wide DRS system, on top of new costs arising from the Chancellor’s budget, it is essential that any approach to DRS is aligned across all four nations and delivers improved recycling rates and a reduction in litter across the UK. The announcement will only increase uncertainty for the scheme and cause confusion among consumers, who may feel cheated by their inability to redeem a deposit and perplexed by the inconsistent approaches just a few miles across the border. Industry will need time to understand the full implications and will need to see the full detail of Welsh Government’s approach. However, it seems highly likely this announcement and the uncertainty it brings will make the already very challenging 2027 implementation deadline even harder to deliver for England, Scotland, and Northern Ireland.”
