Steve Reed Portrait (2)

Steve Reed

Environment secretary Steve Reed has said he believes the UK’s DRS rollout will be “better” after the decision by the Welsh government to pull out.

Drinks industry bosses were left stunned this week, after Welsh deputy first minister Huw Irranca-Davies issued a statement announcing Wales was withdrawing from the planned UK-wide rollout of DRS in October 2027.

Leading industry figures have told The Grocer the decision will mean it is “impossible” for the timeframe to be met, with just four months before the first scheme administrator is due to be appointed by Westminster.

However, Defra issued a defiant statement saying it was pushing ahead with the regulation to allow the rollout across the remaining three nations.

A Defra spokesman said: “We are firmly committed to our timeframe of launching a deposit return scheme in October 2027.

“As the next step in delivery of the scheme, we intend to lay regulations for England and Northern Ireland in November 2024, when parliamentary time allows, which will enable us to progress with the appointment of the deposit management organisations in April 2025.”

Speaking at an FDF investment summit in London yesterday, Reed said the breakdown of negotiation with Wales meant the other three nations were “now in a position to move ahead”. Wales had wanted to include glass in its scheme, an idea dropped by the other nations amid huge industry opposition.

“I think it will work much better that way,” he added.

However, drinks firms have warned of cross-border chaos without a UK-wide scheme.

Read more: UK-wide deposit return scheme in tatters as Welsh government pulls plug

In a joint statement the BRC, FDF, ACS and INCPEN said the Wales withdrawal was “extremely disappointing”, adding: “With industry preparing to invest billions in a UK-wide DRS system, on top of new costs arising from the Chancellor’s budget, it is essential that any approach to DRS is aligned across all four nations and delivers improved recycling rates and a reduction in litter across the UK.

“This announcement will only increase uncertainty for the scheme and cause confusion among consumers, who may feel cheated by their inability to redeem a deposit and perplexed by the inconsistent approaches just a few miles across the border.

“Industry will need time to understand the full implications and will need to see the full detail of the Welsh government’s approach.

“However, it seems highly likely this announcement and the uncertainty it brings will make the already very challenging 2027 implementation deadline even harder to deliver for England, Scotland, and Northern Ireland.”

One leading drinks source told The Grocer: ”Earlier this year, with no progress on DRS, the industry warned that the UK was in danger of becoming the ‘dirty man’ of Europe.

“Now, thanks to the Welsh government’s decision, we have become the laughing stock of Europe.”