There is no case for the Scottish Government to compensate businesses that have spent money on its delayed Deposit Return Scheme (DRS), the First Minister has said.
Humza Yousaf said the UK Government sought to “sabotage” the scheme at the 11th hour through its objection to glass bottles being included.
On Wednesday, the DRS was delayed for a fourth time until at least October 2025 to align it with a planned scheme in England.
The Scottish Government blamed Westminster for the delay, saying the lack of an exclusion for glass under the UK-wide Internal Market Act undermined the scheme.
The Federation of Independent Retailers said it is taking advice on possible legal action, stating that its members have been left out of pocket by the need to prepare for the DRS.
The First Minister was asked about requests for compensation when he spoke to the BBC’s Sunday with Laura Kuenssberg show.
He 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.”
Yousaf said the DRS is an example of how “devolution is becoming unworkable” due to Westminster’s intervention.
Earlier, Circular Economy Minister Lorna Slater said industry figures felt aligning with the UK Government’s DRS was the way forward, even if it meant another delay.
Slater accepted businesses have made “significant investment” to prepare for the DRS – but said the sector supported the decision to delay until the UK Government’s scheme is ready.
Speaking on Thursday, she said she was “very, very sceptical” UK ministers will meet the October 2025 deadline for introducing its DRS.
But the Scottish Conservatives said Yousaf is creating a constitutional row to hide his government’s failings.
MSP and party chairman Craig Hoy said: “Businesses across Scotland will be appalled that Humza Yousaf has dismissed out of hand their calls for compensation.
“Claims that the UK Government sabotaged this scheme simply do not wash when ministers were aware for years that they would need to apply for an internal market exemption.
“Businesses which are already struggling with rising costs know who is to blame for the constant delays to the deposit return scheme.
“The fault lies squarely with Lorna Slater and this SNP-Green government who should be footing the bill for the millions of pounds businesses shelled out in good faith to prepare for the scheme going live in Scotland.”
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