The Scottish Government’s Deposit Return Scheme Full Business Case Stage 1 was published on 8 May 2019 and includes assessment of the range of impacts on local authorities as a result of the introduction of a deposit return scheme. We continue to discuss those impacts with local government.

The Scottish Government has ambitious targets for recycling and there will continue to be a need for effective household collection arrangements alongside DRS. We have recently concluded a public consultation on proposals for a reformed packaging producer responsibility scheme which would result in more money going from producers to local authorities to cover the costs of operating those services.

The valuation of all non-domestic property is a matter for independent Scottish Assessors and it will be for them to consider the appropriate practice pertaining to the valuation of reverse vending machine sites in accordance with valuation law. The Scottish Government will continue to consider the implications of the scheme on those businesses acting as return points.

The Scottish Government is clear that the desired outcome is that the deposit should not be subject to VAT. Discussions are ongoing with the UK Government to reach a final position on this matter.

Where a single-use drinks container sold online is delivered to a consumer in Scotland, a deposit will be applied to that container. Retailers that provide a delivery service will be required to provide a doorstep takeback service. We are considering further what duties should apply to online sales which are fulfilled using a postal or courier delivery service.

The Scottish Government will bring forward regulations to establish a deposit return scheme for single-use drinks containers in the coming months.

The Scottish Government will shortly publish a Business and Regulatory Impact Assessment offering an analysis of the costs and benefits to business associated with implementation of a deposit return scheme.

We are working with the UK Government on the interaction between DRS and the existing packaging obligations. Our intention is that producers will not pay into the PRN system for containers obligated under the DRS .

The Scottish Government’s proposals are based on retailers receiving a handling fee to cover their costs. Hospitality businesses will be reimbursed the costs of any consumables required when acting as a return point and will accrue a benefit from having free uplift of materials where they generally have to pay a collection fee at present. The Deposit Return Scheme Full Business Case Stage 1 was published by the Scottish Government on 8 May and provides further detail on the operation of these arrangements.

Where businesses choose to accept automated returns, the Scottish Government is committed to exploring how the financing of reverse vending machines can be supported.

The Scottish Government published its Deposit Return Scheme Full Business Case Stage 1 on 8 May 2019. That Business Case sets out the cost to producers of operating the scheme once all revenues generated from unredeemed deposits and material sales are accounted for. This is presented in the form of a producer fee.

The Deposit Return Scheme Full Business Case Stage 2 will be progressed over the remainder of this year, providing further technical and commercial detail on the scheme’s operation. As part of this, further information will be gathered in respect of the processing costs per material in order to derive a producer fee by material type.

The Scottish Government has established an Implementation Advisory Group to provide industry advice on the implementation of the deposit return scheme.

The Implementation Advisory Group has established a dedicated Sub-Group to consider the range of existing retail activities and processes which will be affected by the scheme’s introduction.