Circularity Scotland future in doubt as industry withdraws funding

 

Drinks industry

The British Beer & Pub Association, British Soft Drinks Association and Scottish Retail Consortium have said they no longer have the confidence required to continue funding Circularity Scotland.

A joint statement issued by the British Beer & Pub Association, British Soft Drinks Association and Scottish Retail Consortium, 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.

“Given this ongoing political uncertainty we don’t have the confidence required to provide further voluntary funding for the company. It is now a matter for the CSL Board to determine how it wishes to administer the company’s affairs.”

The British Soft Drinks Association has previously confirmed it’s seeking compensation from the Scottish government following the delay to Scotland’s DRS.

Given this ongoing political uncertainty we don’t have the confidence required to provide further voluntary funding for the company.

However, Scottish first minister Humza Yousaf ruled out paying compensation to businesses that invested in Scotland’s DRS on the basis it would go live before other UK nations and include glass.

Speaking to the BBC’s Sunday with Laura Kuenssberg, the Scottish first minister said he doesn’t believe there is a “case” for the Scottish government paying compensation.

The organisations blamed “political uncertainty” for Scotland’s DRS being delayed until October 2025 and put the future of CSL “at risk”. They continue that it’s now up to the CSL Board to determine how it wishes to administer the company’s affairs.

Manufacturers and retailers have committed “tens of millions” in joint investments into CSL, as well as their internal operations to meet the implementation challenges of the Scottish DRS.

The companies say drinks producers remain committed to working with the UK and Devolved governments to deliver an “aligned and interoperable” DRS that meets the needs of UK consumers, businesses and the environment.

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