The UK Government is preparing to block Scotland's deposit return scheme, reports suggest.
The flagship SNP/Greens initiative is aimed at increasing recycling via a 20p deposit on single-use drinks bottles and cans.
Companies are required to register for the scheme by Wednesday ahead of its planned launch on August 16 this year.
But a source told The Times: “The present scheme is in deep trouble and that is before the UK government has been asked to relax laws protecting cross-border trade.”
Scottish Greens co-leader Lorna Slater has admitted the scheme needs an exemption from the UK Internal Market Act for it to go forward.
Scottish Secretary Alister Jack said the bar for an opt-out “is very high indeed” in the House of Commons on Wednesday .
He said: “Aldi will sell 12 bottles of Scottish water for £1.59. Under this scheme, that will become £3.99. If that is not inflationary, if that is not adding to people’s cost of living, I do not know what is.”
He also asked the Scottish government to pause the scheme and work with the UK Government on a nationwide approach.
The UK Government has not yet been approached by Scottish ministers for an exemption to the Internal Market Act.
Slater also said on Sunday that small drinks producers may be given a one-year exemption from the scheme.
Her comments came as SNP leadership candidate Kate Forbes has said she would put the scheme on hold in response to a “wave of concern” from business.
Meanwhile, her rival Humza Yousaf has said he would go ahead with a similar exemption to the one being considered by Slater if he becomes first minister
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