The controversial deposit return scheme looks like being delayed for a further 12 months after the UK government was told the October 2025 launch date is a “non-starter”.

Scottish ministers have already been forced to push back the start of the scheme in Scotland after objections from retailers, drinks producers and opposition politicians.

A start date of this month was scrapped in favour of next March and Circular Economy minister Lorna Slater had been insistent on no further delays. But she finally caved in to pressure for it to be launched alongside the UK scheme in October 2025 – at the earliest.

It has now emerged that UK government and industry bodies have agreed that even that start date is unachievable.

It is understood the devolved governments have made progress in talks on a way forward, albeit with changes to the timeframe.

But one industry source told trade publication The Grocer: “It’s become clear that October 2025 is a non-starter. Even 2026 is a very big question mark for the industry.”

It is now possible that the scheme will not launch before the next Scottish General Election, due by May 2026, and may not survive the SNP-Green coalition.

Talks have focused on how the industry could back the launch of a scheme administrator for DRS following the collapse of  Circularity Scotland which was plunged into administration and forced to lay off staff.

“We need agreement on a way forward from all parties, including governments and businesses,” said the industry source.

“Unless we have that and a clear 18-month run it’s going to be impossible to get DRS off the ground. The banks wouldn’t touch it with a bargepole for a start.”

Supermarket bosses claim DRS will land the industry with a £1.8bn annual bill for the network of vending machines and other costs in running the system, though that has been disputed by soft drinks bosses.

Responding to the latest speculation, the Federation of Independent Retailers’ national vice president Mo Razzaq said: “If the deposit return scheme is indeed delayed, it is perhaps not the worst thing that can happen.

“After the disappointing end to the Scottish government scheme, we need to have a properly planned one which truly works when it comes into contact with the real world.  

“The new scheme will get off the ground quicker if we accept soon that we need one standard scheme for the whole of the UK and one organisation running it.

“Right now we’re spending endless time in talks trying to work out the impossible – how the different practices in each part of the UK can work seamlessly together.”