Business leaders ‘do not have confidence’ to fund DRS firm Circularity Scotland

Business leaders have said they no longer have the confidence to fund Circularity Scotland – the company set up to run the country’s stalled deposit return scheme.

While First Minister Humza Yousaf issued a plea to firms to get behind Circularity Scotland Limited (CSL) as it appears to be on the verge of collapse, a statement from retailers, soft drinks firms and the body which represents pubs and breweries said that given the ongoing political uncertainty, “we don’t have the confidence required to provide further voluntary funding”.

The statement, issued jointly by the British Beer and Pub Association, the British Soft Drinks Association and the Scottish Retail Consortium, added: “It is now a matter for the CSL board to determine how it wishes to administer the company’s affairs.”

It came after Mr Yousaf had appealed to business leaders to continue to provide the cash to fund CSL, even though the deposit return scheme (DRS) will not now begin in Scotland for more than two years.

He insisted problems at Circularity Scotland are linked to the UK Government’s actions to “sabotage” the DRS.

He also told the PA news agency that Green MSP Lorna Slater’s position as circular economy minister in the Scottish Government is “absolutely” secure.

His comments came after it emerged staff at Circularity Scotland have been sent home, with no certainty about whether this month’s wages will be paid.

That followed on from the Scottish Government’s announcement of a fourth delay to the DRS, after the UK Government ruled the scheme north of the border could not go ahead with glass bottles included.

The Scottish scheme will not now come into force until October 2025 at the earliest, when the UK Government introduces its own initiative.

Mr Yousaf said: “Unfortunately, Circularity Scotland find themselves in a difficult position because of the 11th hour intervention of the UK Government.”

Adding that the Scottish Government had “made the point that that intervention would undoubtedly be damaging not just to the deposit return scheme but to Circularity Scotland too”, he called on businesses to get behind the DRS administrator.

The First Minister said: “We know that a separate Scottish scheme can’t go ahead, but of course we’re looking to align with the UK scheme in October 2025, that’s the date the UK Government have provided.

“So I think it would be important to make sure Circularity Scotland continue, to make sure industry in Scotland is ready for when that scheme comes into place.”

Speaking from Jersey where he was attending a meeting of the British-Irish Council, Mr Yousaf said he hopes industry will now take a “pragmatic approach” to continue to fund Circularity Scotland.

However in their statement, the business leaders said: “Our members have collectively invested significant time and tens of millions of pounds in good faith to help establish a scheme administrator in Scotland to meet a deadline originally set by the Scottish Government.

“Sadly, a high degree of political uncertainty has now disrupted plans and timings, putting the future of Circularity Scotland Limited (CSL) at risk.”

Mr Yousaf also insisted Ms Slater had done “everything she possibly can” on deposit return.

“She’s put every effort, every ounce of energy into getting the deposit return scheme up and running,” the First Minister said.

He blamed the “last-minute intervention” from the UK Government to “derail our scheme” for the latest delay, saying: “They have done that purposely to sabotage the deposit return scheme.

“They have unfortunately succeeded in sabotaging a separate Scottish deposit return scheme and that’s why we have to align with the UK scheme.

“That’s why we are urging the industry to continue to find the funds for Circularity Scotland so they can help to ensure that business is ready for and that scheme comes into place.”