Scotland’s deposit return scheme firm on brink of collapse following delay until 2025

Circularity Scotland said it is unable to confirm whether staff will be paid this month

The firm set up to administer Scotland’s controversial deposit return scheme is on the brink of collapse after the plans were delayed until at least October 2025.

Circularity Scotland said staff had been sent home and there was uncertainty over whether this month’s wages will be paid.

The scheme was shelved last week after the UK Government ruled glass bottles should not be included. First Minister Humza Yousaf accused Westminster ministers of “sabotage”.

Picture: PA Wire

A spokesman for Circularity Scotland said: "The board of Circularity Scotland have been working to manage the impact of the Scottish Government's announcement and find a way for the business to continue to operate. While this work is ongoing, we instructed staff to go home on Thursday, June 8.

“The unfortunate reality is that, at this point, we are not able to confirm whether our staff will be paid for this month or whether they will be able to return to the office.

"The board recognises that this is an extremely difficult time for our people and is working tirelessly to find a solution. We have remained in communication with our staff throughout and will provide updates to them at the earliest possible time.”

An email obtained by the Daily Record suggested the firm could exist “in hibernation” until the Scottish scheme launches in 2025, adding: “If stakeholders agree to fund this proposal, all employees would be at risk of redundancy and a consultation period would begin. In this scenario, it is likely that the company would be able to pay June salaries, any outstanding holiday pay and pay in lieu of notice to those made redundant.”

The email added: “If stakeholders do not agree to fund this proposal, Circularity Scotland may go into administration. If the company becomes insolvent, it may be unable to pay contractual monies due to employees, including June wages.”

Circularity Scotland, which has a staff of 66, was set up as a not-for-profit company funded by the drinks industry. The deposit return scheme would have seen consumers charged a 20p deposit every time they buy a drink in a can or bottle, with that money then refunded when they return the empty container for recycling.

Labour MSP Sarah Boyack said it was “an appalling way to treat staff and yet another sign of the SNP-Green government’s disastrous incompetence”. She added: “It is a disgrace that people are at risk of losing their jobs because our two dysfunctional governments can’t work together."

Conservative MSP Maurice Golden said: “The SNP and Greens, who have botched this scheme from the outset, must have known this could happen. Now their inexcusable failure means good people face losing their jobs through no fault of their own.”

Circular economy minister Lorna Slater said: “As a direct consequence of the eleventh hour decision by the UK Government to impose unworkable conditions on Scotland’s deposit return scheme, we were no longer able to proceed as planned. I have written to Circularity Scotland to thank their staff for their hard work to get to a position where the deposit return scheme was ready to launch in Scotland and to express our deep regret that we are now in this position.

“Circularity Scotland is a not-for-profit company led and funded by industry, and it would not be appropriate for the Scottish Government to fund it. Deposit return will still go live in Scotland, and across the UK, in 2025, so it is in industry’s interest to preserve the expertise and skills that Circularity Scotland has built up.”