Scottish retailers required to accept the return of single-use drinks containers under the government’s controversial deposit return scheme could qualify for rates relief, first minister Nicola Sturgeon has said.
Shops across the country have been guaranteed their rates would not rise if they chose to install a reverse vending machine to allow automated returns of bottles.
In May, ministers announced plans for a DRS in Scotland - with draft legislation submitted in September - which would lead to all retailers that sell bottles or cans of drink having to reimburse customers 20p per returned container. The Scottish government aims to introduce DRS in April 2021.
Nicola Sturgeon, speaking at the Scottish Grocers Federation annual conference in Glasgow, said: “The consequences of our throwaway culture can be seen in our streets, our countryside and our waters. But as well as being a depressing eyesore, the damage it causes our environment is irreversible.
“We recognise the global climate emergency and the need for everyone to work together to improve the lives of current and future generations. Retailers will be critical to the success of our planned deposit return scheme and by introducing rates relief, we are supporting them to play their part.”
SGF CEO Pete Cheema added: “I look forward to the introduction of the scheme and the positive change in behaviour it will lead to.
“We have made a very strong case for this rates relief and we are proud to say that the Scottish government has listened and delivered something of real benefit to the industry.”
A new 100% non-domestic rates relief for reverse vending machines would take effect from 1 April 2020, in preparation for the scheme going live, and would run indefinitely.
A consultation on the scheme closed earlier this month, with the FWD warning the Scottish parliament that DRS could have an initial cashflow impact for wholesalers of more than £300,000.
Soft drinks suppliers warned the delay in introducing a similar scheme in England and Wales had blown a £600m hole in the Scottish government’s budget for the system.
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