Retailers slam first minister over DRS compensation

The Scottish government set out its plans for a DRS in 2019, first supposed to be operational by 2021.

After a series of delays, the most recent operational target of March 2024 was scrapped, after Scottish ministers accused Westminster of trying to “sabotage” the legislation by excluding glass (see letsrecycle.com story).

Following the decision to rollout the DRS In line with the rest of the UK in October 2025, there have been calls for the Scottish Government to pay compensation to businesses which have already spent money preparing for the DRS to be rolled out next year.

However, speaking with the BBC over the weekend, the first minister Humza Yousaf said: “We don’t believe there’s a case for the Scottish government to need to compensate because the action we’ve had to take is because of that 11th hour, last-minute intervention from the UK Government, which has meant that a Scottish scheme, unfortunately, isn’t viable.”

The government’s claim to seek an improved relationship with business will have faint credibility if it seeks to evade paying compensation

• Federation of Independent Retailers

‘Ill-afford’

National deputy vice president Mo Razzaq, hit out at the remarks from Mr Yousaf, saying retailers were “told repeatedly” to prepare for the scheme, and many took out leasing contracts at almost £4,000 a year for “now redundant machines to process returned bottles and cans”.

Mr Razzaq added: “Some retailers have also paid thousands for structures to house the machines outside or shop fitting to accommodate them inside. This is money they can ill afford. The number of store closures in towns and villages across Scotland confirms small shops have a fragile economic existence.

“The Scottish government’s claim to seek an improved relationship with business, will have faint credibility if it seeks to evade paying compensation.”

The association represents over 1,000 independent retailers including newsagents, convenience stores, post offices, coffee shops, card & stationary shops, and greengrocers.