Written Question·Treasury·UIN 88305

Deposit Return Schemes: VAT

Tabled: 5 November 2025
Answered: 17 November 2025

Question

Ben Lake

Plaid CymruCeredigion Preseli

To ask the Chancellor of the Exchequer, pursuant to the Answer of 9 April 2025 to Question 43325 on Deposit Return Schemes: VAT, for what reason her Department is considering applying VAT to unredeemed deposits in the deposit return scheme in the context

Answer

Dan Tomlinson
The Deposit Returns Scheme (DRS) will launch in the UK in October 2027, introducing mandatory refundable deposits on drinks containers with the aim of increasing recycling. VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies...

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