Holyrood and Westminster are heading for another showdown as the UK government prepares to block a second policy move by the Scottish government this year.
Alister Jack, the Scotland secretary, intends to deny a request from the SNP government for a trade exemption for its flagship recycling scheme, in a move that experts say could fatally undermine the plans.
Under the scheme, which is due to start in August, Scottish retailers will have to add 20p to the price of single-use bottles and cans, which consumers can then reclaim by returning them to be recycled.
It is a key part of the Scottish National party’s environmental platform, but most experts believe that to work properly it needs an exemption from UK-wide rules that prevent different regulations applying to the same product in England and Scotland.
Jack has criticised the scheme as badly designed and inflationary, telling the Commons recently that it would be bad for businesses and consumers. Talking specifically about the likelihood of granting an exemption, he said: “The exemption bar is very high indeed, otherwise what is the point of the UK internal market?”
Environmental campaigners say the scheme is vital for reducing litter as well as CO2 emissions. But business leaders say it will add huge costs to their products, not only through the extra price of a bottle, but also with the associated production and administration costs.
Jack told the Commons recently that under the scheme, the price of a 12-pack of Scottish water sold at Aldi would rise from £1.59 to £3.99.
If he persuades the cabinet to agree to refuse Holyrood’s request, it is likely to provoke another constitutional row with the Scottish government just two months after Westminster blocked the Scottish
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