More work is needed to understand the full impact of Scotland’s single-use cup legislation on small traders, including the reporting and recording requirements, says FSB Scotland.
In response to the Scottish Government consultation on its plans for a new charge on drinks sold in single-use cups, FSB is calling for pilot schemes to be introduced to better understand the impact of the new rules on small businesses.
The proposals mean businesses will need to add on an additional levy of at least 25p when drinks such as tea and coffee are sold in disposable cups. The new charge would affect cafes, kiosks and other small food and drink operators who already face extensive regulatory demands.
Victoria Manson, FSB Deputy Head of Policy (Scotland), said: “Small businesses are already subject to a multitude of requirements which mean one in 10 spend at least eight hours a week on regulatory compliance. More work is needed to ensure smaller operators understand exactly what will be expected of them in terms of recording and reporting.
“While there is the potential for positive impacts such as cutting down on waste, the extra administration on top of that already demanded of small operators must be considered. Collecting the data, in some cases introducing new software, training staff, all of that comes at a cost.
“We want to see pilot schemes set up to draw out the operational issues that will be faced by small businesses in administering the charge. The Scottish Government should also provide an extended period for small businesses to introduce all the changes that will be required.”
FSB is also recommending funds generated from the policy include a deduction to be retained by small businesses to support them in making the changes required to administer the charge.
ENDS
For further information contact:
Euan McGrory – [email protected] - 07734 509227
Notes to Editors
- The FSB Big Small Business Survey 2023 found over a tenth of Scottish small businesses spend more than eight hours per week on regulatory compliance.
- The Federation of Small Businesses (FSB) is a non-profit, non-party-political organisation that offers its members a wide range of vital business services, including advice, financial expertise, support and a powerful voice heard in governments. Founded in 1974, FSB celebrates its 50th anniversary in 2024. More information is available at www.fsb.org.uk.
- Micro and small businesses comprise almost all enterprises in Scotland (98%), employ 900,000 people and turn over £82bn.