Scotland's first minister has stepped into the row over the country’s controversial deposit return scheme (DRS) and delayed its launch until March next year.

The scheme, which is aimed at increasing the number of single-use drinks bottle and cans that are recycled, was due to start in August, but it has faced fierce opposition from many small breweries.

Scotland’s first minister Humza Yousaf announced the delay as he set out his priorities for his government over the next three years. Yousaf also confirmed proposals to restrict alcohol advertising will be sent “back to the drawing board” as part of his efforts to “reset” the government's relationship with businesses.

SIBA Scotland director Jamie Delap said the DRS delay gives small breweries time to at least catch their breath and begin to prepare for its introduction.

Delap said: “While we fully support the principle of DRS, we have highlighted for many months the extreme complexity of the scheme in Scotland which many small producers do not have the resources or finances to prepare for.”

“Many small breweries have been anxious about the impact it will have on their businesses as they face the cost of living crisis, energy price increases and the lingering effects of the pandemic.”

Scotland’s larger brewers welcomed the extra time given to implement DRS and the rethink on alcohol advertising.

A Scottish Beer & Pub Association (SBPA) spokesman said: “It was also positive to hear the first minister confirm the alcohol advertising consultation will be taken back to the drawing board, as this too would have placed a disproportionate burden on Scotland’s pubs and brewers at a time when they are contending with a range of other issues threatening the very viability of their businesses.”

CAMRA’s Scottish director Stuart McMahon said: “The first minister’s announcements this afternoon will be welcomed by beer drinkers and pub-goers across the country.  

“We had risked seeing consumer choice decimated if brewers and cider producers decided to stop selling into the Scottish market because of the deposit return scheme. We still think there should be a UK-wide scheme, but simplifying the process and delaying its introduction until March 2024 gives ministers the chance to make it workable and make sure consumers can still have a decent choice of beer and cider from small and independent producers across these islands. 

“Going back to the drawing board on plans to restrict alcohol advertising is also the right thing to do. Previous plans for a draconian ban on advertising and promotion would have been devastating – demonising the vast majority of those who consume alcohol responsibly and damaging the viability of small, pubs and breweries in Scotland.”