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OPINION: Deposit Return Scheme needs to compensate retailers fairly

Mo Razzaq, national president, The Fed, uses his experience running a Deposit Return Scheme trial in his store to outline how they can be a success

Finally, it looks like a Deposit Return Scheme for England, Northern Ireland and Scotland will be up and running by October 2027.

A year ago, many of us wondered if a Deposit Return Scheme could ever become a re­ality, after several false starts in Scotland. So, it is pleasing to see that regulations are now in place and there is a clear road map.

Under the propos­als MPs have agreed, plastic bottles and metal cans will be returned to shops in these three UK countries. Wales will have its own scheme. Unlike the others, it will include the return of glass bottles and containers.

The Fed has been behind the introduc­tion of an effective and well-run scheme from day one. However, we will continue to be in active dialogue with all governments of the UK – including as a member of the advisory board of the forthcom­ing deposit management organisation. We will push to ensure the scheme is as flexible as possible, particularly for shops with limited floor space.

We are also backing calls to support full in­teroperability throughout the UK. This would allow a seam­less transfer of plastic and metal containers in scope of the scheme.

Successful Deposit Return Scheme trial shows shoppers’ enthusiasm for it

To illustrate the potential opportunities and challenges facing the scheme, I recently estab­lished a Deposit Return Scheme trial at my shop in Blantyre, South Lanarkshire.

The main focus of the trial was to raise mon­ey for local worthy causes. However, it also tested the public’s appetite for the scheme. I must admit it has been very positive.

But amid all this positivity, I must sound a word of caution. If a DRS scheme is to work effectively, those who will bear the brunt of the extra work and respon­sibility for operating it must be compensated appropriately.

The handling fee for retailers must be at a level that helps small business­es cope with the extra burden and costs placed upon them. Otherwise it will fail.

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