Scottish Deposit Return Scheme: UK internal market exclusion

Saturday, 27 May 2023 19:10

The rationale behind the UK Government’s conditional agreement to the Scottish Government’s request for a UK internal market exclusion. From: Department for Levelling Up, Housing and Communities Published 27 May 2023 Documents Policy statement: Scottish Deposit Return Scheme - UK internal market exclusion HTML Details The UK internal market creates a strong presumption of mutual recognition and non-discrimination across our shared market because...Request free trial

The rationale behind the UK Government’s conditional agreement to the Scottish Government’s request for a UK internal market exclusion.

From:

Department for Levelling Up, Housing and Communities

Published 27 May 2023

Documents

Policy statement: Scottish Deposit Return Scheme - UK internal market exclusion

HTML

Details

The UK internal market creates a strong presumption of mutual recognition and non-discrimination across our shared market because the free flow of trade across the United Kingdom is vital to businesses and consumers.

The implementation of a deposit return scheme (DRS) in Scotland is a matter for the Scottish Government. However, to ensure it is operable the Scottish Government has requested an exclusion from the internal market’s market access principles.

The UK Government has considered the Scottish Government request for an exclusion from the UK Internal Market Act 2020 with respect to its impact on the UK internal market as a whole. This policy statement sets out the rationale behind this decision.

Updated statement from the Scottish government on the Deposit Return Scheme

Commenting following receipt of the official response from the UK Government to the request for an exclusion from the UK Internal Market Act 2020 for Scotland's Deposit Return Scheme (DRS), Circular Economy Minister Lorna Slater said:

“Once again the UK Government has shown utter disregard for devolution. Scottish ministers received the UK Government’s decision letter at 10pm on a Friday night, more than 12 hours after its contents being briefed to press. This is treating the Scottish Parliament with contempt.

“Despite discussions over the last two years this is an eleventh hour attempt by the UK Government to sabotage Scotland’s Deposit Return Scheme by forcing us to remove glass bottles. This is at odds with all the evidence that says the biggest benefits, economically, financially and environmentally, are from including glass. We are now going to have to look very seriously at where this leaves the viability of the Scottish scheme and talk to businesses, delivery partners and other organisations over the coming days and weeks.

“Removing glass also means taking out around six hundred million bottles that would have been collected by the scheme, despite businesses in Scotland having invested millions of pounds in preparation to include them. Many of these bottles will unnecessarily end up as broken glass on our streets, our parks and our beaches.”

Background

The Scottish Parliament legislated to create a deposit return scheme in May 2020. Any changes to the scheme in relation to glass would need to approved by the Scottish Parliament.
The UK Internal Market Act passed in December 2020 and did not receive consent from the Scottish or Welsh parliaments
The Scottish Government has engaged with the UK Government on securing an exclusion from the Internal Market Act since July 2021: https://www.gov.scot/publications/internal-market-act-correspondence/
All but 6 of the 51 deposit return schemes worldwide include glass. Excluding glass will mean that like the rest of the UK, glass recycling rates will remain stuck at unacceptable low levels (63% in Scotland).
The UK Government’s response to their consultation on introducing a deposit return scheme in England, Wales and Northern Ireland published in January 2023 states “Since waste management is a devolved policy area, it is the responsibility of each nation of the UK to decide the scope of its own DRS in a way that fits its policy needs.” (page 10)
The UK Government’s own analysis of deposit return schemes across the UK showed that the social benefits of reduced litter, emissions saved and to the economy are increased by 64% when glass is included (from £3.6bn to £5.9bn)
https://consult.defra.gov.uk/environment/consultation-on-introducing-a-drs/supporting_documents/DRS%20Consultation%20FINAL%20.pdf
Keep Britain Tidy and the Association for the Protection of Rural Scotland have called on the UK Government to include glass in their proposed scheme: https://aprs.scot/press-release/why-glass-should-be-included-in-scotlands-deposit-return-scheme/

ACS Responds to Scotland DRS Temporary Exclusion from Internal Market Act

ACS chief executive James Lowman said: “We are supportive of the introduction of deposit return schemes across the UK and have been working hard to help our members prepare for DRS to go live in Scotland, producing comprehensive guidance. The announcement of the exclusion of glass from DRS in Scotland is welcome news for many local shops that were concerned about asking their store colleagues to handle and store glass that could be broken or soiled”

“We now need clarity from governments across the UK how they plan to implement DRS so we can prepare. The best outcome for local shops and our supply chain partners would be for an aligned introduction of DRS across the UK”

The UK Government’s policy statement is available here: https://www.gov.uk/government/publications/scottish-deposit-return-scheme-uk-internal-market-exclusion/policy-statement-scottish-deposit-return-scheme-uk-internal-market-exclusion