Rishi Sunak left hopes for the UK’s first deposit return scheme “dangling by a thread” this week, as he called on the Scottish government to shelve its proposals.
In what sources described as a hugely significant shift in the UK government’s position on DRS, the PM said the landmark scheme would limit choice and add to food inflation.
Sunak clashed with Stephen Flynn, leader of the SNP in Westminster, at PMQs this week, calling on him to get a grip on inflation by ditching plans for DRS.
Last week the Scottish government admitted it may be forced to pull the plug on its already delayed launch, scheduled for next April, unless the UK government approved it under internal market rules by the end of this month.
The chance of that happening, already regarded as slim, now appears non-existent, with Sunak telling the Commons DRS would “reduce choice and increase prices for consumers” and calling for the Scottish government to abandon it.
Opposition
Although other ministers, notably Scotland minister Alister Jack, have warned of the inflationary impact of DRS and threatened to block its rollout, sources said it was the first time Sunak had positioned himself in opposition.
“For the PM to come out and openly attack a policy which the UK government supposedly supports as a landmark environmental measure is an extraordinary move and leaves the rollout of DRS dangling by a thread,” said one source.
At last week’s No 10 summit, the PM faced calls from industry leaders to shelve the plans, as well as those for Extended Producer Responsibility, to allow businesses to concentrate on fighting inflation.
Pete Cheema, CEO of the Scottish Grocers’ Federation, said Sunak’s move was another massive blow to DRS.
“There are now huge questions about what will happen with the rollout not just in Scotland but the UK too,” he said.
Earlier this week The Grocer revealed that supermarkets, producers and reverse vending machine manufacturers are said to be among those lining up claims for “huge” compensation in the event of the UK’s first deposit return scheme being axed.
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