Deposit and Return Scheme for Scotland Regulations 2020 (as amended): business and regulatory impact assessment

Section 2: Engagement and information gathering

Engagement approach

127. DRS is being developed across the UK between Scotland, England, and Northern Ireland with engagement being undertaken in a collaborative manner. A range of public and business consultations have already been undertaken. Considering these previous engagement efforts which have contributed to the development of DRS in the UK, the Scottish Government, in conjunction with the UK Government and DAERA will ensure further opportunities for public and business engagement are undertaken. The Scottish Government will also ensure any relevant engagement efforts undertaken by other UK nations are used for the benefit of the design and implementation of the Scottish scheme.

Internal SG engagement/ engagement with wider Public Sector

128. Officials have engaged with colleagues in the following policy areas to discuss the proposed amendments to DRS legislation:

• Equality, Inclusion and Human Rights Directorate
• Age Equality and Older People
• Island Communities Policy Team
• Rural Communities Policy Team
• Trade Policy Division

129. Engagement with relevant policy colleagues across Government will continue as the scheme progresses towards October 2027, this will include colleagues from the New Deal for Business Team.

UK/ Devolved Administrations

130. The DRS is being developed and implemented utilising a joined-up approach between the Scottish Government and the UK Government and DAERA. Therefore, the Scottish Government remains in close collaboration with partners across the UK, including the Welsh Government and continues extensive engagement with these partners to ensure smooth interoperability.

Wider Public Sector

131. The Scottish Government has frequent engagement with SEPA on enforcement issues that will impact upon Scottish stakeholders. The Scottish Government are in regular contact with The Convention of Scottish Local Authorities (COSLA) to discuss a range of environmental legislation, including DRS, and will continue to engage with relevant public bodies as we work towards the launch of DRS in October 2027.

International

132. As DRS is operational in at least 56 countries globally, a wealth of evidence collected on experiences in implementing and managing DRS schemes has been used to inform the development of DRSs in the UK.^[82] Where relevant, the Scottish Government, in partnership with the UK Government and DAERA, will consult with international partners to ensure that benefits are maximised whilst costs and unintended consequences are minimised and mitigated where possible.

133. To date, the Scottish Government has engaged with representatives from Latvia, Hungary, the Netherlands, Ireland, Norway, Finland, Germany and Sweden in the development of the DRS. This provides a mix of countries with long-established and more recently launched DRSs.

134. In December 2024, the draft Deposit and Return Scheme for Scotland Amendment Regulations 2025 and the draft Deposit and Return Scheme for Scotland (Designation of the Scheme Administrator Order 2025 were notified to the World Trade Organisation under the terms of the Technical Barriers to Trade agreement. The notification (G/TBT/N/GBR/96) was circulated on 8 January 2025, allowing for more than 60 days for comments before the introduction of the legislation.

Business / Third Sector engagement

135. 12 businesses were interviewed in 2018 for the Scottish Firms Impact Test (SFIT) (now known as business engagement following updated BRIA guidance) for more detailed and substantive input on how the scheme may affect the wider supply chain associated with drinks containers.^[83] Additionally, in 2021-2023, independent Gateway Reviewers interviewed a cross-section of key stakeholders with a particular focus on activities on the critical path for delivery of DRS, such as establishment of the scheme’s infrastructure and implementation of the regulatory function; this included a range of business representatives. To supplement the findings of the review, the Scottish Government met with representatives of a wide range of businesses to understand the impact of the pandemic on them and to ensure that their views were taken into account, in respect of the timetable and other changes to the DRS legislation.

136. There was also the DRS Implementation Advisory Group (IAG) in Scotland.^[84] While no longer operational by 2025, the group provided industry expertise and advice on practical issues related to the operation of the DRS and how it interacted with production, retail, and hospitality industries. The group comprised of trade bodies in the sectors who will have most influence on the scheme’s operation. The membership included:

• British Soft Drinks Association
• Federation of Small Businesses
• Natural Hydration Council
• Scotch Whisky Association
• Scottish Beer & Pub Association
• Scottish Grocer’s Federation
• Federation of Independent Retailers
• Scottish Wholesale Association
• Scottish Licensed Trade Association
• Scottish Retail Consortium
• UK Hospitality

137. In 2022 the DRS System-Wide Assurance Group was formed to support the implementation of Scotland’s Deposit Return Scheme – a recommendation of the independent Gateway review, conducted in 2021. This group consisted of representative organisations and Scottish Government, and monitored progress towards implementing DRS, as well as emerging risks. This group is no longer operational.

138. As noted earlier, there is now a three-nation approach to engagement with DRS stakeholders. This includes a regular Industry Forum, attending ‘Steer Co’ meetings, a cross section of industry who have come together to form a potential Scheme Administrator candidate, as well as regular meetings with environmental groups and individual stakeholder meetings. However, Scottish specific industry engagement will continue to address any issues surrounding the scheme here.

139. Officials attended the Regulator Review Group (RRG) on the 6 February 2025 to consult stakeholders on the proposed DRS Amending Regulations and Designation Order. In follow up correspondence, RRG members highlighted several recommendations for consideration during implementation of DRS. Specifically, clear communication to consumers on circular economy aims, to maximise consumer participation; clearly articulating the cost to businesses; and costs to retailers’ who act as return points. Officials will continue to keep the RRG informed during implementation of the scheme.

Public consultation

140. There was extensive engagement undertaken in the design of the original Scottish DRS. In 2018, the Scottish Government undertook a public consultation, ^[85] which received 3,215 responses, comprised from 159 organisations, 2,008 individuals, and 1,048 postcard campaign responses submitted by supporters of Have you Got the Bottle (HYGTB) campaign. Relevant for business impacts in particular, the public consultation received responses from retail, vending, and retail representative bodies; recycling and waste management organisations; and packaging manufacturers. These responses contributed to the design of the scheme.

141. The UK Government has conducted two consultations for the implementation of DRS in England and Northern Ireland that are relevant for this impact assessment. The first consultation was held in February 2019, with results published in July 2019, and indicated strong support for the introduction of a DRS.^[86] In response, the UK Government for England, and DAERA in Northern Ireland indicated that the introduction of a DRS was subject to receiving additional evidence and carrying out further analysis on the costs and benefits of such a scheme.

142. This work was undertaken and presented in a second 12-week consultation published in March 2021, with results published in June 2021.^[87] This consultation recognised the disruption caused by the Covid-19 pandemic. Despite these challenges, support for introducing a DRS remained strong, at 83%. More specifically, respondents cited that the pandemic had perverse impacts on the environment, with the creation of more waste due to increased outdoor and on-the-go consumption of drinks, resulting in higher levels of littering, creating a stronger rationale for the introduction of a DRS. Respondents also noted that there could be economic benefits in the form of increased investment and job creation. Supporting those consultation findings, a polling exercise by TOMRA Collection in 2024 also highlighted strong support for the introduction of DRS across the UK.^[88]

143. Despite this, respondents also noted concerns over the costs and implementation time required, suggesting a delay to implementation as many businesses continued to recover from Covid-19. In its overall engagement approach, this BRIA recognises previous work undertaken by other UK nation governments to inform development of the Scottish DRS to ensure it remains interoperable and acutely aware of the challenges previously and currently faced by Scottish businesses in preparing for the implementation of this DRS.

Other stakeholders

144. Where relevant and possible, the Scottish Government will seek to engage with other stakeholders who are not covered in the above sections, and use their input to ensure the successful implementation and management of the DRS.