The proposed Deposit Return Scheme (DRS) could significantly raise costs for UK retailers.
- The British Retail Consortium forecasts an annual cost of £1.8bn for the DRS starting in 2025.
- Previous government estimates placed the DRS cost at £171m annually.
- Retailers may transfer these increased expenses to consumers through higher prices.
- The British Retail Consortium urges the government to reconsider the scheme’s feasibility.
The proposed Deposit Return Scheme (DRS) could significantly raise costs for UK retailers. The scheme is designed to reduce litter and plastic pollution by imposing a 20p charge on drinks containers. Consumers can reclaim this charge upon returning the containers, thus incentivising recycling.
The British Retail Consortium forecasts an annual cost of £1.8bn for the DRS starting in 2025. This figure is based on industry analysis, which contrasts sharply with the government’s 2019 estimate of £171m per year, highlighting a substantial discrepancy in projected expenses.
Previous government estimates placed the DRS cost at £171m annually. This initial estimate has been revised significantly upwards by the British Retail Consortium, suggesting the need for a reassessment of the implementation strategy.
Retailers may transfer these increased expenses to consumers through higher prices. The significant rise in costs linked to the DRS means consumers might face higher prices at a time when inflation pressures are easing, potentially impacting household budgets.
The British Retail Consortium urges the government to reconsider the scheme’s feasibility. Andrew Opie, Director of Food and Sustainability at the Consortium, has voiced concerns about the scheme’s complexity and expense. He advocates for a delay, allowing time for household collection and packaging levy reforms to guide a more effective approach.
The proposed Deposit Return Scheme presents significant financial challenges for retailers, necessitating careful policy consideration.
