Deposit and Return Scheme for Scotland Regulations 2020 (as amended): island communities impact assessment

Impacts which are not significantly different for island communities

38. The following areas were highlighted as having the potential for differential impacts in Island communities. However, subsequent desktop-based research has determined there would not be different impacts. Reasoning for these decisions is outlined in more detail below.

Impact on the price of goods

39. The Scottish Government estimates that the cost of living in rural Scotland including island communities, is between 15% and 30% higher than urban parts of the UK.^[16] This has been described as a “rural premium”, with rural poverty being described as a “hidden issue”. The budgets that households need to achieve a ‘minimum acceptable living standard’ in remote rural Scotland are typically 10-40% higher than elsewhere in the UK.^[17]

40. When analysed further, this increase is primarily attributed to motoring costs. This data shows that for food and groceries there is only an observed 1% difference with mainland UK.

41. The DRS may result in new associated fees and/or costs for producers being passed on to the consumer in the retail price of the goods.

42. The 2019 DRS Fairer Scotland Duty Assessment^[18] based on the 2020 scheme design, included a forecast of the likely additional costs faced by consumers. That assessment included glass drinks containers and assumed a 20p deposit rate. It estimated that DRS would result in an initial additional outlay of around £1.40 for those individuals falling within the lowest 10% household income group, rising to approximately £1.80 for the second lowest household income decile (as defined by the Office for National Statistics). While this money can be reclaimed, the assessment suggested this would be spent on servicing further deposits and so could not be redirected to other priorities.

43. This forecast assumes that there is high public participation in the DRS and acknowledges it will be more expensive for customers who choose not to, or cannot, redeem their deposits.

44. Provided the scheme items are returned, the deposits can be reclaimed reducing any financial impact, however costs will increase if the deposit cannot be redeemed.

45. At this stage, it was considered that any potential impact of costs was unlikely to be significantly different for island communities compared to the mainland.

46. The accompanying Fairer Scotland Duty Assessment^[19] also considers this issue.

Increased costs - Impacts on producers, distributers and retailers

47. It was determined that impacts of increased costs would be the same for businesses across Scotland. No reason was found to suggest this would be disproportionately expensive or problematic for those operating in island communities.

Communication materials in Gaelic

48. Gaelic is an integral part of Scotland’s national identity, cultural heritage and history and the Scottish Government is committed to the promotion and inclusion of the Gaelic language and speakers where possible.^[20]

49. The number of Gaelic speakers in Scotland is significantly higher in island communities compared to mainland Scotland. According to the 2022 census, around 2.5% of people across Scotland aged 3 and over had some skills in Gaelic, up from 1.7% in 2011. This increases to more than 57% in Comhairle nan Eilean Siar, and around 6% in Argyll & Bute and Highland Council areas.^[21]

50. As service providers and retailers operating in island communities already incorporate Gaelic into their communications, it is expected this would continue to be the case with this proposal without further intervention. No further exploration of provision for Gaelic language communications is required.