The firm which was due to manage Scotland’s controversial deposit return scheme (DRS) appears to be on the brink of collapse.

Staff have been sent home from Circularity Scotland and the board said it is unable to confirm whether the workers will be paid for the month or even if they will be able to return to the office.

The board said it recognises that this is an “extremely difficult time” for the staff, with bosses “working tirelessly” to find a solution.

Scotland’s DRS was due to start in August but was pushed back to March 2024 after Humza Yousaf was installed as first minister.

It has since been delayed to at least October 2025 after the UK government ruled it could only go ahead without glass bottles included.

Announcing the delay at Holyrood last week, Lorna Slater, the minister for green skills, circular economy and biodiversity, said the Scottish government had been left with “no other option”.

Circularity Scotland released a statement on Thursday afternoon.

It 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 8 June.

“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.”

Read more:
Deposit return scheme delayed until at least October 2025
Minister avoids questions over compensation
Government accused of ‘sabotage’
Forbes: Scheme needs reworking to ‘avoid job losses’

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With similar schemes in the rest of the UK not due to come into effect until 2025, the Scottish government sought an exemption from the Internal Market Act – which regulates trade in the different parts of the UK following Brexit.

Westminster granted a limited exemption, but stipulated glass could not be part of it.

Environmental campaigners called on Mr Yousaf to “hold his nerve” and soldier on with the scheme with cans and plastic bottles.

The first minister wrote to Prime Minister Rishi Sunak, calling for glass to be included. The request was knocked back to ensure “simplicity and interoperability”.

Ms Slater previously admitted that the industry has “invested hundreds of millions of pounds” towards the scheme.

The Scottish Greens co-leader said she was committed to a DRS and has pledged to work with the UK government and others to “play the hand we have been dealt” for a cleaner environment, less waste and to meet climate targets.

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