Here's why your takeaway coffee is set to cost 25p more in Scotland - Natasha Durkin

The Scottish Government’s consultation on the introduction of a single-use beverage cup charge is now open, and closes on 14 November. The proposed minimum charge is 25p per single-use cup, and biodegradable or compostable single-use cups will be included and will be subject to the charge.

The use of single-use cups is a significant environmental concern, given single-use cups:

• are estimated to have risen in Scotland from 200 million in 2018 to 388 million (71 single-use cups per person a year) in 2021–22;
• create an estimated 5,400 tonnes of waste each year (one of the highest volumes compared to nations in the EU); and
• cost local authorities approximately £1 million a year in waste collection/disposal.

​The Scottish Government says the proposed 25p levy on single-use cups reflects ‘the available evidence about the level of charge that would be required to significantly influence consumer behaviour’ (Picture: stock.adobe.com)

The policy is designed to change behaviour by reducing disposable item usage and increasing reusable alternative usage.

The proposal for single-use cups is broadly based on the existing plastic-bag charging scheme, which produced dramatic results. Let’s look at some key elements of this proposal:

Timing. All suppliers of drinks in single-use cups in Scotland are to apply the charge at the point of sale to the consumer (with minimal exceptions).

Exemptions. Vending machines, schools, impractical events (for example, festivals, event spaces), and drink-only purchases (excluding hospitals and social care settings in particular) are proposed to be excluded.

Natasha Durkin is a Senior Associate, Shepherd+Wedderburn

Scope. It will apply to all single-use disposable cups, regardless of composition.

Charge. The minimum charge is 25p (including any chargeable VAT), which is separate to the drink price and visible to the customer.

One-off costs. Suppliers can reclaim “reasonable costs for administering the system out of the proceeds of the charge”. This matches the single-use carrier-bag model.

Administration (suppliers). Suppliers must record the numbers of single-use cups that they have charged for, how much they have paid for them, the amount they are entitled to deduct (to calculate net proceeds, such as costs to administer the system and VAT), and the net amount raised by the charge. This replicates the record-keeping system for the single-use carrier-bag charge.

Enforcement. To be modelled on the single-use carrier-bag charge. A failure to charge/ comply with recording requirements is a criminal offence and liable to a fine (current maximum of £10,000). Local authorities will have the power to issue fixed penalty notices following a breach.

What are the main issues to be considered?

Is the minimum charge too high? The Scottish Government considers that the proposal reflects “the available evidence about the level of charge that would be required to significantly influence consumer behaviour”.

Cup cost is variable. The Scottish Government notes that suppliers can charge more for the cup if they wish, and/ or offer additional discounts for customers who bring a reuseable cup.

Disproportionate impacts on lower incomes, those with disabilities (who have difficulty using reusable cups), rural communities, and people experiencing homelessness.

Inclusion of biodegradable single-use cups. The Scottish Government’s position is that compostable/ biodegradable materials are “not circular solutions to the problem of over consumption”, and exempting these could lead to “loopholes”.

Charge proceeds. The consultation is clear that further stakeholder engagement on this topic is required to ensure the final policy does not exceed the devolved powers of the Scottish Parliament. Practicalities of the proceed allotment should also be taken into account, questioning where they should go and who should distribute them.

Natasha Durkin is a Senior Associate, Shepherd+Wedderburn