The British Retail Consortium foresees a significant financial impact on retailers from the upcoming bottle recycling scheme.
- Analysis suggests costs might be tenfold higher than government estimates, raising concerns about price inflation for consumers.
- Calls have been made to delay and reassess the scheme’s implementation to mitigate complexities and expenses.
- The scheme’s planned introduction has already been postponed in Scotland, signalling potential disruptions.
- Industry leaders express apprehension over potential economic repercussions and the scheme’s efficacy.
The British Retail Consortium (BRC) has raised alarms regarding the financial burden that the net zero bottle recycling scheme might impose on retailers, estimating an annual cost of at least £1.8 billion. This figure starkly contrasts with the government’s previous estimation of £171 million per year for the Deposit Return Scheme (DRS), which was outlined in their 2019 impact assessment. The BRC’s analysis indicates that these costs could feasibly surge, significantly impacting retail operations.
The DRS aims to implement a 20p levy on drink containers, refundable upon return of bottles and cans. This initiative is designed to reduce litter and promote recycling across England. However, the financial implications of the scheme, particularly the possibility of increased product prices as costs are transferred to consumers, have been highlighted by industry analysts and retailers alike.
In light of these concerns, the BRC has urged the government to reconsidering and delay the DRS. Andrew Opie, the BRC’s director of food and sustainability, described the scheme as “costly and complicated,” suggesting that it might not achieve the desired improvements in recycling rates to justify its implementation. Opie further warned that escalating costs, estimated to approach £2 billion annually, could exacerbate household financial pressures amidst declining inflation.
The scheme’s launch has already been deferred in Scotland, now anticipated to commence no earlier than October 2025. This delay follows appeals from industry leaders who advised against proceeding without broader support from Westminster. As discussions continue, the potential economic fallout from the DRS remains a pivotal concern among stakeholders.
Further complicating matters, the government has postponed its Extended Producer Responsibility (EPR) scheme for packaging fees. The grocery sector has cautioned that such measures could lead to substantial increases in food prices, adding another layer of complexity to the ongoing debate around sustainable policy solutions.
The British Retail Consortium’s analysis calls for a measured reconsideration of the Deposit Return Scheme to avert unintended economic consequences.
