Thousands of retailers are set to be given an exemption from the rollout of the UK’s first deposit return scheme, amid rising fears over the soaring cost and lack of readiness for the rollout.
The Grocer understands Green minister Lorna Slater, who is spearheading the scheme for the Scottish government, has agreed to reduce the scale of the initial rollout in order to hit the promised 16 August deadline.
The move could see vast swathes of smaller retailers allowed to duck out of the scheme either temporarily or permanently. It comes as the scheme faces a challenge from judicial review legal proceedings over the costs of implementation, backed by the Scottish Grocers’ Federation.
The Scottish government has held crisis talks with industry leaders. The Grocer revealed earlier this month that senior figures had warned of chaos due to the cost of the scheme, the lack of readiness of the industry and the different approaches being taken to DRS by the devolved nations.
It is understood Slater “doubled down” during the talks in her commitment to launch the scheme on time on the new schedule. It has already been twice delayed by the pandemic, as well as the commitment for the scheme to include glass as well as plastic.
However, with the estimated number of return points for the scheme’s reverse vending machines in Scotland alone having swollen to 36,000, the government is considering either a phased approach or allowing many small businesses to be permanently excluded.
Insiders say the compromise would take the number of return points closer to 10,000, though this would be seen as a huge backtrack by green campaigners.
“There’s a big push to get that number reduced and the minister has signalled that the Scottish government will look at easing the process for interventions,” said a source.
Another source added: “I think there will be exceptions for pretty much everybody but out-of-town supermarkets and major in-town retailers.
“Or it could be billed as DRS phase 1 for large retailers and they may then look at a hybrid system, including digital, along with the rest of UK further down the track.”
Meanwhile, The Grocer understands the UK government is also considering a major backtrack over its plans for DRS, with a review led by Defra minister Mark Spencer due to re-examine whether it should include glass bottles.
Previously the UK government has said its scheme, unlike Scotland, would exclude glass, though it has faced criticism from some Tory MPs claiming it represents a “betrayal” of its election promises.
However, such a move would face strong opposition from many quarters in the industry who claim the inclusion of glass would ramp up the cost and complexities of the scheme, as well as hit local authorities.
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