³ÉÈË¿ìÊÖ

Under the Verity House Agreement, local government funding in Scotland will not be ring-fenced or directed, unless there is a clear joint understanding to do so. However, the extended producer responsibility for packaging funding purpose - to pay for the cost of managing household packaging waste - is clearly set out in legislation.

I refer the member to the answer to question S6W-36501 on 23 April 2025. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at /chamber-and-committees/written-questions-and-answers.

Under the Verity House Agreement, local government funding in Scotland is not ring-fenced or directed, unless there is a clear joint understanding to do so.

Extended producer responsibility for packaging (pEPR) has exemptions to avoid unnecessarily burden on small producers. Producers with an annual turnover less than £2m and 50 tonnes of packaging supplied are exempt from pEPR payments, but are required to report packaging data. This exempts approximately 70% of the UK's smaller producers from paying scheme fees. The four UK nations will keep these thresholds under review.

The Scottish Government has considered the impact on businesses through the publication of a

We will be evaluating the impacts of extended producer responsibility for packaging in future years through a four nation evaluation of the policy. The evaluation is being led by Department for Environment, Food and Rural Affairs and will run from
2024-2029.

Extended producer responsibility for packaging (pEPR) fees are intended to incentivise producers to use less packaging and ensure packaging they do use is environmentally sustainable. It also ensures that producers take full responsibility for the environmental impacts of the packaging they place on the market, transferring these costs away from taxpayers.

Producers with an annual turnover less than £2m and 50 tonnes of packaging supplied are exempt from pEPR payments, but are required to report packaging data. This exempts approximately 70% of the UK's smaller producers from paying scheme fees.

Packaging within the scope of Scotland’s Deposit Return Scheme (cans and PET plastic) is exempt from packaging EPR. The use of reusable/refillable packaging such as beer kegs or reusable bottles is also encouraged under pEPR, as producers are only required to report and pay disposal cost fees for household packaging the first time it is placed on the market, and can then offset these fees when they recycle this packaging at the end of its life, thereby avoiding the vast majority of pEPR fees.

PackUK is the scheme administrator for extended producer responsibility for packaging (pEPR), operating on behalf of the four nations. PackUK is responsible for calculating and distributing local authority payments.

The requirements that PackUK must consider when assessing funding to local authorities are set out in the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024.

In November 2024 indicative payments were shared with local authorities, along with guidance to help local authorities understand how payments have been calculated and allocated. PackUK has also engaged with local authorities through online forums and gathering stakeholder feedback to ensure accuracy of payments. Scottish Local Authorities have been indicatively allocated a total of £160m in 2025-26, out of a total of £1.4bn in pEPR funding across the UK.

Scottish Government officials have continued to work closely with COSLA throughout the development and implementation of pEPR.

I refer the member to the answer to question on 23 April 2025. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at /chamber-and-committees/written-questions-and-answers.

Table 1 presents the estimated gross cost of setting the Higher Property Rate equal to the Standard Multiplier in England, from 2016-2017 until 2020-2021.

The Higher Property Rate in Scotland was 1.3p higher than the Standard Multiplier in England from 2016-2017 until 2018-2019, and 1.2p higher in 2019-2020 and
2021-2022. The Higher Property Rate and the Standard Multiplier in each year are shown in Table 2.

Figures for years from 2021-2022 until 2025-2026 are available in answers to questions S6W-25972 on 18 March 2024, S6W-25588 on 1 March 2024 and
S6W-32778 on 7 January 2025.

In 2016-2017, the threshold for the Standard Multiplier was £18,000, while the threshold for the Higher Property Rate was £51,000. Both thresholds were set to £51,000 from 2017-2018 until 2019-2020. From 2020-2021, the threshold for the Higher Property Rate was increased to £95,000, while the threshold for the Standard Multiplier remained at £51,000.

All figures are gross estimates, and are not adjusted for any relief. Figures are broken down by property class, as the Scottish Government does not hold property-level data on industry sectors. Property class is a classification used by Scottish Assessors to describe the type of property, and does not necessarily accurately reflect the use of a property.

This table is based on the valuation roll as at 1 October 2016, 1 October 2017, 1 October 2018, 1 October 2019, and 1 October 2020.

Figures in this table are rounded to the nearest £1,000, and may not sum due to rounding.

Table 1: Estimated gross cost of reducing the Higher Property Rate to the level of the English Standard Multiplier (£), broken down by property class

The Scottish Government has a range of measures to communicate information and raise awareness about the Non-Domestic Rates (NDR) reliefs which are available in 2025-26, including specific relief for the hospitality sector. This includes:

• information on the Scottish Government webpages at and ;
• a Short Guide to NDR Rates and Reliefs 2025-26 which is issued to a wide range of stakeholder groups including trade representative bodies;
• which provides more detailed information for local authorities on NDR reliefs for 2025-26 and is published on Scottish Government webpages; and
• regular engagement and dialogue with industry stakeholders and representatives through the consultative sub-group on Non-Domestic Rates, regular roundtable meetings with Ministers and the Scottish Ratepayer Forum. The membership of these groups includes representatives from the Scottish Hospitality Group, UK Hospitality, Scottish Tourism Alliance, Scottish Licensed Trade Association, Scottish Beer and Pub Association, and Night-Time Industries Association.

Local Authorities also publish information on non-domestic rates reliefs, including hospitality relief, on their individual websites.