Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what recent assessment he has made of the market impact of a (a) flat rate and (b) variable rate of deposit within a deposit return scheme.

We have recently closed our second consultation on introducing a deposit return scheme in England, Wales and Northern Ireland and are analysing the responses with a view to publishing a government response later this year. We will be appointing a Deposit Management Organisation to run the DRS scheme. The recent consultation explored the potential for both a flat rate and variable rate deposit to be used in the scheme, and stated that the intention would be for the Deposit Management Organisation to have the power to set the deposit level within parameters set out in legislation by Government. This would include the ability to set either a flat rate or variable rate deposit. The government response to the consultation will include details on the agreed approach to setting a deposit level in the DRS.

I am acutely aware of the concerns that stakeholders have raised regarding the possible market distortions that could occur depending on the type and level of deposit set, and we will be keeping these concerns in mind when finalising the approach to setting and amending the deposit level.