Retail concerns over Deposit Return Scheme

When the new Deposit Return Scheme (DRS) is rolled out in October 2027 Defra hopes to ‘increase recycling rates of single-use drinks containers to at least 90%, to significantly cut littering and to expand opportunities to collect and reprocess high quality materials’.

But concerns have been raised by Bira over the practicalities of the scheme for smaller retailers, such as health stores which house coffee bars within their premises.

The new regulations will require retailers selling drinks in single-use containers (made from PET plastic, aluminium or steel, between 150ml and three litres) to host post-consumption return points, unless they meet the exemption criteria (for example, stores under 100m sq in urban areas). The DRS will require retailers to charge customers with a refundable deposit at point of sale.

Bira says that although backing environmental initiatives is important, ‘careful consideration of the scheme's impact on independent retailers and High Street vitality’ is advisable.

Andrew Goodacre, CEO of Bira, comments: “While we support environmental initiatives, we have significant concerns about how the Deposit Return Scheme will impact independent retailers. This scheme will add more costs to running a shop at a time when retailers are already facing unprecedented pressures. Smaller shops will find it particularly challenging to accommodate the self-return machines, and storage of returns could become a significant problem. Most recycling will likely take place in the large supermarkets on retail parks, potentially driving even more footfall away from our town centres as consumers combine bottle returns with their shopping trips."

By Rosie Greenaway, editor