‘Single-use’ cup charge proposed in Scotland

The proposals for imposing a new minimum charge for single-use disposable beverage cups were opened to consultation on Thursday and, subject to the outcome of the consultation process, are envisaged to take effect before the end of 2025.

The plans form part of the Scottish government’s wider drive to deliver a more circular economy and address what it described as the “throw-away culture” within society – it cited research undertaken in 2019 that suggests that imposing a charge of between 20 and 25 pence could encourage behavioural change in 49% of the Scottish population.

“The purpose of the planned charge is to reduce our consumption of single-use disposable beverage cups through establishing a robust system which leads to widespread acceptance and increased use of reusable cups; while creating an opportunity for innovative approaches to reusable cup schemes to develop,” the Scottish government said in its consultation paper.

Under the plans, suppliers would be required to apply the charge at the point of sale when consumers are purchasing a drink. Few exceptions to the charge are envisaged – the Scottish government said the charge would generally apply regardless of the cup’s composition, meaning cups marketed as biodegradable or similar would not be exempt. The proposed new charge would also apply regardless of the type of drink the cup is intended to be used for.

According to the proposals, the charge would not apply where the drink is supplied for free or in a reusable cup, and the Scottish government also said that other exemptions could cover the supply of drinks in schools or via some vending machines. However, loyalty schemes would not by exempt from the charge.

Public policy expert Scott Wright and Hannah Burton, who supports hospitality businesses with legal compliance, both of Pinsent Masons, highlighted significantly increased record-keeping duties drinks retailers would face if the proposals are implemented. They said those duties would be similar to existing methods that apply to charges on single-use carrier bags.

The Scottish government said: “We propose that suppliers will be able to deduct reasonable costs for administering the process out of the proceeds of the charge so that the system is not financially burdensome. We would expect suppliers to keep records of: the number of single-use disposable beverage cups which they have collected a charge for annually; the level of charge set by the supplier and paid for those cups; the cost of administering the charge; the net proceeds raised by the charge. Any necessary updates to systems, staff training and promotion of the charge would be considered as a one-off deduction from the proceeds.”

According to Burton, the planned new measures add to the new regulation that hospitality businesses were told to expect to emerge in 2024.

In Scotland, they follow on from the postponement of the implementation of a new deposit return scheme (DRS) – a recycling regime that, when in effect, will place a 20 pence charge on drinks bottles and cans which will be able to be redeemed by customers if they return the containers to ‘reverse vending machines’ operated in larger stores, shopping centres and community hubs.

In England, regulations were introduced in 2023 that impose a ban on certain plastic tableware products.

The Scottish government’s new consultation is open until 14 November 2024. A business and regulatory impact assessment and an environmental assessment on the proposed scheme have been published alongside the consultation paper.

Subject to the outcome of the consultation, the Scottish government will come to a decision on how a charge could be implemented and will work with stakeholders to develop the policy further before regulations are laid.