Exclusive:SNP ministers told to ditch 'latte levy' on disposal coffee cups as tax will not come into force this year

Business leaders say the ‘latte levy’ deserves to be thrown in the bin.

Scottish ministers are being told to ditch their ‘latte levy’ proposals for good after it was confirmed the charge will not come into force this year.

The Scottish Government wants to charge at least 25p on drinks such as tea and coffee sold in disposable cups. An estimated 388.7 million disposable cups are used in Scotland each year.

Scottish businesses had expected this charge to be brought forward this year, but it has now been confirmed this will not be happening.

The government wants to introduce a 25p charge on disposable cups. | Christopher Furlong/Getty Images.

Business leaders say imposing an extra charge on single-use cups will stop Scots buying takeaway drinks altogether as opposed to encouraging them to bring a reusable cup with them. They also say they are worried about independent retailers’ ability to cover any extra costs.

Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, said: “The cups levy remains a terrible idea, which deserves to be dumped in the bin. Adding a charge to drinks on the go is more likely to affect whether consumers buy the drink in the first place rather than encourage them to use a reusable cup.

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“The idea consumers will treat cups the same way as shopping bags is implausible. The reality is many hospitality businesses cannot effectively offer reusable alternatives because they sell self-service drinks, deliver drinks or don’t have the capacity to safely clean customers’ cups.”

He added: “We’re glad Scottish ministers have listened to our representations and those of shops and cafes and delayed bringing forward legislation.

“We hope the focus will now be on working collaboratively with industry on more realistic options to reduce single cup use - such as the national cup recycling scheme, borrow cup, and the use of discounts and rewards to incentivise the use of a reusable cup over a single-use one, along with investing in recycling capacity and infrastructure.

“Scotland’s retailers want to encourage consumers to make more sustainable choices. That is best done by incentives rather than ineffective levies.”

The Federation of Small Businesses said a ‘latte levy’ could put retailers off using disposable cups made from recycled materials.

​The Scottish Government has wanted to bring in a 25p levy on single-use cups

Mo Razzaq, national president of the federation and owner of Premier Mo’s in Blantyre, said: “This could push coffee drinkers to larger outlets as they can absorb the tax better than smaller retailers.”

He added: “We are pleased that the Government is acting on Fed members’ concerns. We agree that action is needed to better protect our environment, but this ‘latte levy’ is not the right way to go about it.

“Instead of adding at least 25p to the cost of disposable hot and cold drinks cups, Fed members believe that litter louts should be given heftier fines of £500 or £1,000 and community service picking up litter.”

A date of 2025 for this levy was included in a draft circular economy route map by the Government. However, no date was included in the final route map.

The Scottish Government has now confirmed no levy will be brought in this year.

A Government spokeswoman said: “The Scottish Government is working closely with stakeholders to develop a single-use cups charge that is deliverable and allows businesses and consumers time to prepare.

“We are taking time to fully consider the issues raised in the consultation to ensure the charge is effective, proportionate and fair.”