How 25p plastic cup 'latte levy' would be introduced and what SNP ministers would do with the money

The Scottish Government has launched a new consultation on proposals for the 25p charge to all single-use cups by the end of 2025 and follows the approval of circular economy legislation by MSPs in June.

Officials have stressed there would be exemptions for specific locations and uses such as in schools and free drinks in hospitals, but there are concerns about the impact on disabled people who can have no choice but to use disposable cups.

Under the plans as they stand, retailers would be able to “retain reasonable implementation costs from the charge” in a similar way to the approach for single-use carrier bags. 

But ministers are still pondering whether the net proceeds from the charge should be kept by the businesses or collected by local councils or the Scottish Government.

Read more: How Scotland's troubled deposit return scheme could return under Labour 'review'

The plans could also be a key test or relations between the UK and Scottish governments following Westminster, under the Tories, blocking Scotland’s troubled deposit return scheme over internal market rules.

An estimated 388 million single-use cups were used in Scotland in 2021-22 creating 5,400 tonnes of waste.

When the 5 pence charge on carrier bags was introduced in 2014 in Scotland, their use plummeted by 80 per cent in the first year.

Acting SNP net zero secretary, Gillian Martin, said: “The success of the single-use carrier bag charge shows how an environmental charge can be an effective tool to change people’s behaviour and encourage responsible consumption.

“Introducing a national charge could provide consistency for consumers, provide a level playing field for retail and businesses and help to drive forward sustainable behaviours. Our proposed approach is similar to the charge for single-use carrier bags and will be familiar to both suppliers and the public.”

But  Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, has warned businesses “question, at a time where the economy is flatlining and high streets are struggling, whether this is the time to introduce a new cost to hard-pressed consumers”.

He added: “We are sceptical at this time that the charge will make a substantial difference to the number of cups used.

“Furthermore, we oppose proposals to hypothecate the proceeds purely to environmental causes. We believe retailers are best placed to decide how the proceeds can help good causes in their local community.

“These proposals are poorly timed and we question if they will have a substantial impact.”

Scottish Conservative MSP, Maurice Golden, claimed the charge “will hit hard-pressed consumers and businesses”.

 He added: “While we supported the general principles of the Circular Economy Bill, there continues to be a concerning lack of detail for businesses and consumers on how this new tax will be applied.

“For many Scots, this will be imposing extra costs on them when they have no other option. Even the SNP’s own consultation admits it will impact negatively on disabled people, who rely on purchasing these single-use cups when out and about.”