The company set up to administer Scotland’s delayed Deposit Return Scheme (DRS) appears to be on the verge of collapse, with staff sent home and uncertainty over whether this month’s wages will be paid.
The board of Circularity Scotland said it is “working tirelessly” to find a solution, after the Scottish Government announced a fourth delay to the DRS.
The scheme will not now begin until October 2025 at the earliest, after the UK Government ruled that glass bottles should not be included.
The Scottish Government said this left it with no option but to shelve the DRS until a similar scheme launches south of the border.
On Thursday, reports emerged that Circularity Scotland’s staff may not be able to continue in the intervening period.
Set up as a not-for-profit company funded by the drinks industry, it was appointed as the scheme administrator by the Scottish Government.
There are 66 staff in total.
The company 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.”
A report in the Daily Record suggested there have been talks around putting the company into “hibernation” until the DRS launches – though this would still put staff at risk of redundancy.
Last week, First Minister Humza Yousaf said he had spoken to leaders in the drinks industry following the decision to delay the DRS.
He said they had all agreed to take a “pragmatic approach” towards supporting Circularity Scotland in the months and years ahead.
The Conservatives blamed the Scottish Government for the uncertainty over Circularity Scotland’s future.
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.
“The Scottish Government has shrouded Circularity Scotland and the wider process in secrecy, and this is what happens when proper scrutiny and accountability cannot be applied.
“A deposit return scheme could have been launched in Scotland next year with the support of business and consumers, but the SNP-Green government preferred to pick a fight with the UK Government instead.”
A UK Government spokesperson added: “The operation of Circularity Scotland is a matter for them and the Scottish Government.
“Earlier this year the drinks industry raised concerns about the Scottish Government’s DRS differing from plans in the rest of the UK.
“The UK Government listened and worked at pace to accept the Scottish Government’s request for a UK Internal Market exclusion on a temporary and limited basis to ensure the Scottish Government’s scheme could proceed while aligning with planned schemes for the rest of the UK.
“The chief executive of Circularity Scotland was categorical that the scheme remained viable on this basis and that many other successful schemes run without glass. But the Scottish Government decided not to proceed and instead further paused the scheme until October 2025.
“Delaying the Scottish scheme was entirely a decision made by the Scottish Government.”
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