Ministers urged to abandon ‘nonsensical’ plans for so-called latte levy

Retailers and hospitality chiefs are calling on Scottish ministers to ditch “nonsensical” plans to charge a new fee on drinks sold in single-use cups.

The Scottish Government wants to bring in a charge of at least 25p when drinks such as tea and coffee are sold in disposable cups.

The charge, which has been dubbed the latte levy, is being introduced in a bid to encourage more people to opt for reusable alternatives.

With an estimated 388.7 million disposable cups used in Scotland each year, plans for a charge were included in legislation already passed by Holyrood which aims to reduce waste and encourage recycling.

But retailers have voiced concerns that the fee will hit both businesses and customers in the pocket.

UKHospitality said the charge will increase the cost of an “affordable drink” such as a takeaway coffee, and will “disproportionately hit lower-income customers”.

Speaking as a Scottish Government consultation on the charge closed, Leon Thompson, executive director of UKHospitality Scotland, said: “At a time when Scottish consumers are understandably being more discerning with their disposable income, the prospect of a tax on disposable cups is nonsensical.

“There is an overwhelming amount of evidence and international precedent that sets out why this charge doesn’t work, and the Scottish Government should save itself time and money by abandoning these proposals.”

Mr Thomson said existing initiatives encouraging customers not to use single-use cups are “nudging consumer behaviour in the right direction”, adding the Scottish Government should work with businesses to “build on this success, rather than introducing an ineffective tax that will only penalise consumers”.

Meanwhile Ewan MacDonald-Russell, the deputy head of the Scottish Retail Consortium, said shops, cafes and restaurants are “already taking significant steps to reduce waste, increase reuse and recycling of cups, and help move to a more circular economy”.

He added: “A cups charge will do very little to help that, whilst hitting both businesses and consumers in the pocket.

“Adding a charge to drinks on the go is more likely to affect whether consumers buy the drink in the first place rather than encourage them to use a reusable cup.

“Whilst we recognise Government wants to take action to improve recycling and reuse rates across Scotland, that can only be done with proportionate policy making.

“We don’t believe a new charge on cups passes that test.”

A Scottish Government spokesperson said: “An estimated 388 million single-use cups were used in Scotland in 2021-22, equating to 71 cups per person, per year – one of the highest rates compared to nations in the European Union.

“Introducing a minimum charge for single-use cups is designed to drive forward sustainable behaviours and reduce the consumption of these items, which currently create 5,400 tonnes of waste a year in Scotland.”