The introduction of Scotland's flagship recycling initiative has been pushed back by at least two years in the latest delay to the controversial policy.
The deposit return scheme (DRS) will not begin until October 2025 at the earliest following discussions between businesses and the Scottish Government.
Lorna Slater, the Green minister responsible for the scheme, told MSPs today the previously agreed start date of next March was no longer viable following an intervention from the UK Government.
She accused Westminster of "sabotage" after Tory ministers demanded glass was excluded from the scheme in order to comply with the UK Internal Market Act.
The DRS was supposed to boost recycling rates and reduce littering by charging a 20p deposit on each single-use drinks container bought in shops.
But it has faced repeated criticisms from small businesses across Scotland amid fears it would massively push up costs at a time of already soaring inflation.
Slater told MSPs: "It is now clear that we have been left with no other option than to delay the launch of Scotland’s DRS, until October 2025 at the earliest based on the UK Government’s current stated aspirations.
"I remain committed to interoperable DRS schemes across the UK provided that we can work in a spirit of collaboration not imposition. I wrote again last night to the UK Government, to urge ministers to reset a climate of trust and good faith to galvanise and retain the knowledge that has been built in Circularity Scotland and DRS partners in Scotland.
"This parliament voted for a deposit return scheme. I am committed to a deposit returnsScheme. Scotland will have a deposit return scheme.
"It will come later than need be. It will be more limited than it should be. More limited than Parliament voted for.
"These delays and dilutions lie squarely in the hands of UK Government that has sadly seemed so far more intent on sabotaging this parliament than protecting our environment."
Labour MSP Sarah Boyack accused the SNP and Green ministers of losing the confidence of businesses over the latest delay.
She said: "This is a huge blow to our recycling aims and to businesses who have spent years of their time and millions of pounds preparing for an ever-shifting deadline.
"The Tories have provided a convenient excuse to delay, but this scheme has been in chaos for months because of the SNP-Green government’s incompetence.
"It is utterly absurd that our two governments are too dysfunctional to deliver a working recycling scheme without it descending into yet another constitutional row.
"Lorna Slater has lost the confidence of businesses and proven herself to be a liability – she must now have her DRS responsibilities removed.
"Both governments need to get round the table and come up with a way forward so we can boost Scotland’s recycling rates and protect our planet without further delay.”
Business leaders welcomed the delay and called for ministers to learn lessons from it.
Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, said: "Retailers will need to take time to fully understand the implications of today’s decisions and consider what the most appropriate next steps are.
"In the short-term retailers are likely to pause any further investment until we have a clear operational plan and a final credible critical path to delivering the scheme.
"Lessons must be learned from this sorry DRS saga. In the longer term this announcement provides an opportunity for the four home nations of the UK to come together to develop a comprehensive delivery plan, focused on consumers, based on delivering a coherent, comprehensive, clear, and cost-effective deposit return scheme which can increase recycling and move to a more circular economy."
Gavin Partington, director general of the British Soft Drinks Association, said they welcomed the delay which would align the scheme with the rest of the UK.
"Our members have long supported the introduction of an industry-led DRS run on a not-for-profit basis to help support a circular economy, reducing litter and increasing recycling," he said.
"They have made significant investments of money, resource and time over the last few years to help get DRS off the ground.
"We now urge the UK Government to publish a blueprint for how it intends to achieve an October 2025 start date, particularly regarding how it intends to fulfil the conditions set out in its letter to the Scottish Government."
But environmental campaigners reacted with dismay to the announcement.
Kat Jones, director of Action to Protect Rural Scotland, said: "This is a bleak day for anyone who cares about Scotland’s litter crisis, or indeed the global climate crisis.
"The UK Government’s own documents show that the October 2025 date is at best provisional, describing it as 'a stretching target date' and that the feasibility of it is still being assessed.
"Effectively, this puts deposit return on hold indefinitely, and as a result we will continue to see cans and bottles littered in substantial numbers across Scotland for years to come.
"It is a victory for those in industry who have never wanted to pick up the costs of their irresponsible business model.”
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