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Circularity Scotland informed the Scottish Government in March 2023 that a substantial delay to the scheme would pose significant financial challenges for them. This issue was highlighted to the UK Government via a letter to the Prime Minister which urged the UK Government to agree to an exclusion from the Internal Market Act for the deposit return scheme.

Copies of the correspondence between the Scottish Government and UK Government have been published as part of an EIR and can be found on the .

As part of deposit return scheme governance, the Scottish Government meets with a range of stakeholders via the Ministerial Assurance Group, Executive Oversight Group and Producer, Retailer and Hospitality Sectoral Groups. Many of these businesses have told us that, because of the 11th hour decision of the UK Government to impose vague and unworkable conditions on Scotland’s scheme and make progress impossible, their businesses have been impacted - both operationally and financially.

Ministers and officials did meet with Circularity Scotland in April, May and June. A range of issues were discussed at these meetings including matters relating to operational aspects of the Deposit Return Scheme, milestones and planning, and the impacts of the 11 th hour decision by the UK Government to grant only a partial and temporary exclusion to the Internal Market Act. All Ministerial engagements are published on the Scottish Government website .

As part of deposit return scheme governance, the Scottish Government meets regularly with businesses stakeholder across the producer, wholesaler, retailer and hospitality sectors. Many of these businesses have told us that, because of the 11th hour decision by the UK Government to impose vague and unworkable conditions which undermined our deposit return scheme and made progress impossible, their businesses have been impacted - both operationally and financially.

Circularity Scotland Limited is a private not for profit company set up by industry. As an independent private company, it is not required to report to the Scottish Government and is responsible for its own financial planning. Therefore the Scottish Government has not undertaken any planning in relation to Circularity Scotland’s financing.

Circularity Scotland is currently in administration. More information on this can be found at: :

The Scottish Government was first informed that Circularity Scotland was likely to go into administration late on 19 June 2023 and was formally told that they were appointing administrators on 20 June 2023. The administrators confirmed they had been appointed on their website on 21 June 2023.

We had told the UK Government that Circularity Scotland were likely to go into administration should they not provide a full exclusion to the Internal Market Act for the Deposit Return Scheme in Scotland to allow it to go ahead as planned on 1 March 2024.

Officials from the Scottish Government met with the administrators of Circularity Scotland on 23 June 2023 and also on 3 July.

The Scottish Government assesses and monitors a range of risks relating to the delivery of the Deposit Return Scheme in Scotland and takes appropriate action.

Circularity Scotland is now in administration and the Scottish Government is considering the next steps in accordance with the Deposit and Return Scheme for Scotland Regulations 2020.

We remain committed to the delivery of the Deposit Return Scheme but as stated in Parliament on 7 th June, this will not now launch until October 2025 at the earliest due to the UK Governments 11 th hour intervention through their decision on the Internal Market Act exclusion.

The Scottish Government does not hold this information. The respective Enterprise Agencies are best placed to answer this question. This question should be directed to them.

SEPA and Zero Waste Scotland were informed that Circularity Scotland was going in to administration on 20 June 2023.