Prime minister Rishi Sunak is being urged to directly intervene to save Scotland's deposit return scheme amid reports that it could be axed later this month if UK ministers do not give the go-ahead.
Lorna Slater said if an exemption from the Internal Market Act was not confirmed then the Scottish government would have to decide on its future. The BBC states that it understands UK ministers are unlikely to reach an early decision.
Slater told the Scottish Grocers' Federation that a lack of response could render the scheme "unviable". She said she was still working closely with the UK government to make the launch happen.
A UK government spokesman said it received a formal request for an exemption on 6 March, with the Scottish government having since paused the scheme until March of next year.
"It therefore hasn't been possible yet for us to fully assess the impacts of the exclusion request on cross-UK trade, firms and consumers," BBC quoted the spokesperson as saying.
"We will continue to engage with the Scottish government to realise our shared ambition to improve the environment while meeting the needs of consumers and businesses across the UK."
Meanwhile, groups such as Greenpeace UK, Keep Britain Tidy and the Marine Conservation Society have signed an open letter to Sunak, demanding the UK government grants an exemption for DRS in Scotland under the Internal Market Act – which regulates trade in the different parts of the UK following Brexit.
The exemption is needed as the scheme in Scotland is due to begin in March 2024, ahead of similar initiatives in England, Wales and Northern Ireland.
The letter, which has also been signed by the Association for the Protection of Rural Scotland, Friends of the Earth Scotland, WWF Scotland, Keep Scotland Beautiful, Keep Northern Ireland Beautiful and Keep Wales Tidy, also calls on Sunak to include glass bottles in the DRS schemes planned for England and Northern Ireland.
“The rollout of deposit return in Scotland in March 2024 will require an Internal Market Act exemption which we know is under discussion across Whitehall. Such an exemption will protect the substantial investment industry has already made in Scotland and ensure we start to see the environmental benefits as soon as possible," states the letter, adding that Scotland launching a DRS first could be “actively beneficial for England, Wales and Northern Ireland”, where the initiative is not due to come in until 2025.
“There remains one key obstacle to a truly UK-wide approach to the litter problem. While Wales and Scotland intend to include glass drinks bottles, as things stand glass is excluded for England and Northern Ireland.
“If this remains the case, it would either undermine the long-term interoperability of the various systems, or cost English businesses more, unnecessarily, when glass is subsequently brought in, as happened in Finland in 2011 and elsewhere.
“We would therefore urge you to intervene and bring forward a straightforward solution to this problem by including glass on the same basis as Scotland and Wales, alongside the Internal Market Act exemption for the Scottish system.”
The DRS in Scotland was delayed after Humza Yousaf was installed as First Minister.
The scheme will see shoppers north of the border charged a 20p deposit every time they buy a drink in a can or a glass or plastic bottle, with that cash given back to them when the empty containers are returned for recycling. It had been due to come into force in August, but its launch date has now been pushed back to March 2024.
The majority of UK households are heading into 2025 feeling financially secure, but more people think the health of the economy is worsening than improving, a recent report has shown.According to KPMG UK’s Consumer Pulse survey, nearly three times more people feel secure (fifty-seven percent) than insecure (twenty-one percent) about their financial situation.
While the picture for financial security is largely positive, consumer opinion regarding the health of the UK economy was more mixed – with four in ten consumers saying the economy is worsening, compared to a quarter saying it’s improving.
Pessimism about the UK economy is highest among two-thirds of those aged sixty-five and over, with those aged 25-34 the most optimistic. Regionally, London is the most upbeat, with the North East the most downbeat about the economy.
A wage rise would be the most likely reason to increase an individual’s spending beyond 2024’s levels.
A third of consumers say that retailer promotional events could convince them to part with more money during the course of the year, with a quarter saying improved loyalty scheme prices would.
Reflecting upon the findings, Linda Ellett, head of consumer, retail and leisure for KPMG UK, said, “Whether due to confidence in their ability to spend or their ability to manage household bills, it is positive news that the majority of UK households are heading into 2025 feeling financially secure.
“Despite four in ten people saying the UK economy is worsening, a higher amount than those thinking it is improving, planned spending on big ticket items over the next twelve months looks healthy. Whether that spend comes to fruition will depend on a range of factors, including continued reduction in interest rates and whether perception about economic worsening becomes a reality in the form of increased job insecurity.”
Comparing their spending in the last three months (Sept, Oct, Nov) to the previous (June, July, Aug), groceries was the number one category for those spending more money while eating out was the activity consumers most commonly spent less money on.
A quarter of consumers reported buying promotional or discounted items more over the last three months, while half of consumers said they bought big ticket items – most commonly on a holiday, followed by household appliances.
Price was the top purchasing driver for both everyday purchases and one-off higher cost items.
Ellett added, “Promotional periods and the value consumers place on loyalty pricing throughout the year have all demonstrated that shoppers remain savvy when it comes to searching out better deals.
"This will continue in 2025 and our research shows that up to a third of consumers may increase their overall spending levels if retailer offers are sufficiently appealing to them.
"Retailers will be looking to capitalise on this by using customer data and AI to ensure offer targeting is increasingly personalised in the coming twelve months.”
The Scottish Government has been urged to introduce a robust licensing system for vape and tobacco sales as part of its regulatory strategy.
Currently, retailers in Scotland are only required to register to sell tobacco and vaping products, with no licensing fees and limited enforcement mechanisms.
Gillian Mackay, the Scottish Green health spokesperson, argued that this lenient system has enabled vape sales to proliferate in unconventional locations such as barbers and phone shops.
Mackay is advocating for a licensing framework similar to alcohol sales, where local councils have the authority to refuse licenses and impose stricter penalties on non-compliant retailers. Unlike the current system, which relies on fixed penalty notices with limited financial impact, the proposed scheme would involve more stringent repercussions, including the potential for license revocation.
“The tobacco and vaping industries are doing a huge amount of damage to the health of people in Scotland and beyond, yet they remain very poorly regulated,” Mackay said. “A robust licensing scheme can tip the balance and ensure that we are taking action to put health before the profits of an industry which all too often targets young people and encourages addictive and harmful behaviours.”
Mackay highlighted the forthcoming ban on disposable vapes as a critical milestone for public health. However, she added that retailers must also contribute by providing recycling points and services, potentially as a condition of their license.
“Local authorities should have the power to refuse licences and introduce proper repercussions including the removal of a licence for retailers who flout the rules,” Mackay said. “We also need retailers to play their part by making their licence conditional on providing recycling points and services.”
Additionally, she proposed that a licensing fee could not only cover administrative costs but also generate revenue for local councils to support essential services.
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Totally Wicked store at its head office in Blackburn
Vaping firm Totally Wicked has reported a pre-tax profit of £8.1 million for the financial year ending March 31, 2024, more than doubling its previous year’s profit of £3.3 million.
The Lancashire-based company said the “continuing growth” of single use vapes, particularly in convenience and grocery channels, has been a “disproportionate driver” of the strong growth, with turnover also surging to £118.1 million, up from £90.4 million the prior year and £54.4 million in 2022, according to its latest filing to the Companies House.
The financial results, however, come as the UK government confirmed in October 2024 that the sale of single-use disposable vapes will be prohibited from June 2025 in the UK. Additionally, a vaping products duty of £2.20 per milliliter of e-liquid is set to be introduced from October 1, 2026.
Addressing the upcoming regulatory changes, Totally Wicked stated: “There are concerns that introducing so many new regulations at once could adversely impact smokers and former smokers by restricting access to vaping products, potentially leading to increased tobacco use. However, we believe the combination of the licensing scheme and the new tobacco vaping duty will result in enhanced HMRC enforcement against illegitimate sellers, creating significant opportunities for legitimate operators like Totally Wicked.”
The company’s UK turnover climbed from £77 million to £96.9 million, while European turnover rose from £12.9 million to £20.8 million. However, sales in other regions declined slightly, falling from £441,696 to £396,079.
Segment-wise, wholesale turnover increased sharply from £53.8 million to £76.4 million, and retail turnover grew from £16 million to £18.9 million. Online and telephone sales also showed growth, rising from £20.6 million to £22.7 million. To support its expanding operations, the company’s headcount increased from 372 to 411 during the year.
In a statement, the board noted a shift in consumer preferences toward cost-effective and environmentally sustainable vaping solutions. “Our owned channels to market have enabled customers to transition to more sustainable products and strategically advantageous branded propositions earlier than would be possible through third-party routes,” the statement said.
Lidl said its sales exceeded £1billion in the four weeks up to 24 December for the first time, as the discounter celebrated its most successful Christmas yet.
Lidl added that it increased its British supply base by 20 per cent this holiday season, stocking its shelves with locally-sourced festive favourites at the lowest prices. Over 16 million British pigs in blankets were sold, including new Deluxe flavours such as maple, cheese, and cranberry. British turkeys proved again to be the festive staple, with one sold every second, while three quarters of a roasting joints were enjoyed across the country.
Lidl Plus grew its user base by over a quarter year-on-year, with 75 per cent more customers taking advantage of its weekly discounts. In December, Lidl also brought festive cheer with its Advent Calendar campaign, which saw more than 1 million customers engage daily for surprises and promotions.
Lidl’s partnership with Neighbourly saw around 1.25 million meals being donated in December, while the supermarket provided £125,000 in festive grants to local charities, helping bring Christmas magic to those who needed it most. Additionally, Lidl’s nationwide Toy Bank scheme invited customers to donate toys to children who might otherwise go without, resulting in almost 100,000 toys being distributed as Christmas presents.
“For three decades, Lidl has been providing households with access to unbeatable quality and value at Christmas. This year, we were thrilled to welcome more customers than ever before. That’s a strong reflection of the trust our customers place in us and the dedication of our colleagues and suppliers, who work so hard to deliver an outstanding Christmas for the communities we serve,” Ryan McDonnell, chief executive at Lidl GB, said.
“In 2024, we continued to raise the bar with product innovation, especially within our Deluxe range, as well as supporting all the community initiatives that are deeply important to us. It’s all been about bringing people together and sharing the joy of Christmas.
“Looking ahead, we’re excited to build on our momentum, growing our presence across the country and continuing to deliver the highest quality at the best prices on the market.”
This update comes after Lidl revealed it experienced the highest growth in customer visits of any supermarket last year, as part of its FY23 results.
Co-op today (2) revealed its commitment to continued convenience growth with a planned 75 new stores opening this year across the UK.
The new stores will be both Co-op estate stores and Co-op franchise stores, a sector the convenience retailer has actively pursued recently with strong growth.
Co-op’s plans for new stores in 2025 include up to 25 new Co-op operated stores – with the first new Co-op stores to open in early 2025 in Salford Quays – The Anchorage and East Benton – Newcastle Upon Tyne.
Furthermore, up to 50 stores are expected to open and operate as a franchise this year, enabling Co-op to bring its products and the benefits of membership to more communities, and operate in locations where it may not otherwise be able to access.
The move builds on franchise growth in 2024 which included innovative new locations where Co-op shares its convenience expertise with quality partners.
Last year saw Co-op franchise stores open on more university campus; a first for Co-op with a store opening in a hospital, on petrol forecourts (in partnership with EG On The Move), plus a Co-op store at HMS Collingwood (in partnership with ESS) to enhance the lived experience of service personnel.
Up to an additional 80 existing stores will also undertake major refurbishments in 2025, maximising the potential of Co-op’s existing portfolio of properties to serve and support communities, and creating stores which are fit for the future while ensuring Co-op maintains a store in every postal area.
Matt Hood, Co-op’s Managing Director said: “We want everyone to have easy and convenient access to a Co-op store, wherever they live, and this year we are completely focused on achieving that through an ambitious and exciting new stores strategy.
"Not only are we a membership organisation owned by our six million members, we are experts in convenience shopping, where we combine great quality products, value and deals and ethical retailing with quick online delivery services, community participation and additional customer services.
"Our stores play an active role in local life, and are often a community hub, providing the products and services our members and customers want and need.”
Co-op is working to grow its share of the quick commerce market to over 30 per cent by focusing on both its own Co-op platform and with its partners including Just Eat, Uber Eats and Deliveroo. Co-op has been named top grocer across all major delivery platforms, and stores in more communities will further support ecommerce reach and growth.
Plus, as part of Co-op’s commitments to carbon reduction, it has announced ambitions to install up to 76,000 solar panels on up to 700 of its sites across its food, funeral care and logistic portfolio over the next three years.
Co-op is on track to achieve its ambition of growing to eight million members by 2030, with new stores bringing the benefits of membership, including member savings, to more local communities.