Welsh gov move to abandon DRS ‘extremely disappointing’

19-Nov-2024 - Last updated on 19-Nov-2024 at 15:27 GMT

Going solo: the Welsh government has indicated it will not be part of the UK-wide deposit return scheme (credit: Getty/adamkaz)

The Welsh branch of UKHospitality has labelled a move by the country’s government to abandon the UK-wide deposit return scheme (DRS) as “extremely disappointing”.

UKHospitality Cymru has also demanded that a potential ‘tourist tax’ for visitors staying in the country overnight must be ring-fenced to support the hospitality trade.

The trade body said the government’s notion of pursuing a separate DRS that is not aligned with the rest of the UK will increase cost and complexity for businesses.

In a written statement, Huw Irranca-Davies MS, the Deputy First Minister and Cabinet Secretary for Climate Change & Rural Affairs, confirmed the Welsh Government was “not able to proceed with the joint process” to pursue aligned DRS across the UK.

The statement said the government will pursue the development of its own scheme, with the inclusion of glass. UK-wide efforts had excluded glass, due to staff safety and storage concerns.

Further away than ever

UKHospitality Cymru executive director David Chapman said: “It’s extremely disappointing the Welsh government has abandoned the collaborative effort to develop aligned deposit return schemes across the UK.

“Successful DRS schemes will deliver maximum alignment and interoperability between nations. That unfortunately now looks further away than ever with this decision.

“A Welsh scheme, which is not aligned with England, Scotland and Northern Ireland, only serves to increase cost and complexity for businesses operating across the UK, makes the objective of improving recycling more difficult and could lead to a reduction in products available in Wales.

“I would urge the Welsh government to carefully consider all cross-border issues in the development of its scheme to ensure that Welsh businesses can have the easiest transition into any new scheme proposals.”

Additional burden

Meanwhile, plans by the Welsh government to give local authorities the right to charge people staying overnight in visitor accommodations in Wales will further burden accommodation businesses, UKH Cymru said.

However, the organisation, which represents more than 130,000 hospitality venues in Wales, said any funds raised from the tax must be ring-fenced to be spent on the hospitality, tourism and visitor economy, and not be funnelled into day-to-day council spending.

Furthermore, in order for the levy to work, there must be legislative requirements for local authorities to consult with accommodation operators in areas where they are looking to introduce the ‘tourist tax’. Affected businesses must also be involved in any decision making around how the levy is spent.

Chapman said: “While we don’t agree with the introduction of visitor levies, which place an additional burden on already over-stretched businesses and impact the ability of Welsh tourism to remain competitive, should the bill be passed, it’s crucial that hospitality is made central to the process.

“The sector must be the primary beneficiary of any funds directly raised, so that we can invest in the local economy, drive job creation, and boost economic growth right across Wales.”