A leading retail body has warned that the new Deposit Return Scheme (DRS), announced this week by the Department for Environment, Food and Rural Affairs, could inadvertently disadvantage smaller high street retailers when it launches in October 2027.

The British Independent Retailers Association (Bira), which works with over 6,000 independent businesses of all sizes across the UK, has raised concerns about the practical implications of the scheme for smaller retailers.

Under the new regulations, retailers selling drinks in single-use containers will be required to host return points for these containers unless they qualify for an exemption.

While shops under 100m² in urban areas will be exempt, many independent retailers will still need to accommodate return facilities and storage areas for collected containers.

Andrew Goodacre, CEO of Bira said "While we support environmental initiatives, we have significant concerns about how the Deposit Return Scheme will impact independent retailers. This scheme will add more costs to running a shop at a time when retailers are already facing unprecedented pressures. Smaller shops will find it particularly challenging to accommodate the self-return machines, and storage of returns could become a significant problem.

"Most recycling will likely take place in the large supermarkets on retail parks, potentially driving even more footfall away from our town centres as consumers combine bottle returns with their shopping trips."

The scheme, which applies to single-use drinks containers made from aluminium, steel, or PET plastic with a capacity between 150 millilitres and 3 litres, will require retailers to charge a refundable deposit to consumers at the point of sale.

While supporting environmental initiatives, Bira emphasises the need for careful consideration of the scheme's impact on independent retailers and high street vitality.