Regulatory Review Group minutes: August 2024

Attendees and apologies

• Professor Russel Griggs OBE, Chairman 
• Susan Love, Association of Chartered Certified Accountants 
• Ewan MacDonald-Russell, Scottish Retail Consortium
• Fiona Richardson, Convention of Scottish Local Authorities 
• David MacKenzie, Trading Standards 
• Douglas White, Consumer Scotland
• Lisa McCann, Environmental Health (Substitute)
• Judith Young, Scottish Government
• Wendy McCutcheon, Scottish Government
• David McPhee, Scottish Government
• Janet McVea, Scottish Government
• Linsey Stewart, Scottish Government
• Shaun Taylor, Scottish Government
• Andrew Forrest, Scottish Government (Secretariat) 
• Alan Caldwell, Scottish Government (Secretariat) 
• Euan Reid, Scottish Government (Secretariat) 

Apologies:

• Brian Lawrie, Society of Chief Officers of Environmental Health in Scotland
• James Fowlie, Convention of Scottish Local Authorities

Items and actions

Welcome, Introductions, Approval of Minutes

Professor Russel Griggs OBE welcomed and thanked attendees for participating in the first Regulatory Review Group (RRG) meeting for Autumn 2024. Minutes from the previous meeting (27 June) were agreed and the attendee list updated. 

Correspondence 

The response letter from Ms Martin (Acting Cabinet Secretary for Energy and Net Zero) on the Energy Strategy and Just Transition Plan advice was considered and noted by the RRG. Ministers are committed to engaging with issues raised and recognise the role of the RRG and the valued advice it provides. 

Update from the Scottish Government 

Secretariat officials updated that the Programme for Government (PfG) would be published in due course, once set and confirmed by the Parliamentary bureau. Directorate for Business and Better Regulation officials worked closely with the PfG team and relevant policy leads to ensure that impact assessment on key policies were undertaken. Secretariat officials provided an update on the staffing position as part of the New Deal for Business Delivery Unit.

Workplan for August to November 2024

The RRG considered and discussed the draft workplan that had been shared with members. They noted that in addition they wish for the Heat in Buildings Bill to return along with Single Use Vapes proposals for further scrutiny. The RRG asked for the Secretariat to update the draft workplan for a further review at their meeting on 26 September 2024.

The RRG also discussed the merit in more generally undertaking follow-up/ post-implementation reviews. Prior to the relaunch, the RRG had spent more time on post-implementation review where an issue had arisen. The RRG also considered whether the appropriate time for follow-up was post implementation or whether a ‘pre implementation’ final discussion would be more impactful, particularly where there was a lag between a first RRG discussion and implementation.

Professor Griggs had also engaged with Zero Waste Scotland, who had proposed a discussion on how regulation could increase economic output. It was also noted that a discussion on the use of standards instead of regulation may be helpful, and thus British Standards Institutue (BSI) or United Kingdom Accreditation Service (UKAS) should be invited to discuss.

The workplan had identified the RRG to undertake a case study reflecting on the Visitor Levy Bill development and how best practice approaches would inform other policy development across the Scottish Government. Professor Griggs wished to reflect further on this with the Secretariat, and it was agreed that the proposal would be reconsidered later.

The Secretariat will update the workplan based on feedback and engage with relevant stakeholders to secure attendance.

Single-use Disposable Beverage Cups Presentation

Scottish Government officials presented on the proposals for charges on single-use disposable beverage cups that were published for consultation on 22 August 2024.

Officials are aware of the potential impacts and costs of the policy, which is why they are consulting and engaging early and in the most meaningful way. They set out the Scottish Government’s intention to gather as much feedback as possible to support effective implementation of the proposals. The proposals themselves are viewed as required to limit the significant and increasing levels of consumption of disposable cups. The proposals are for a minimum 25p charge to be required on all single use cups and drinks across all materials, to maintain clarity and minimise complexity. It proposes allowing for a small number of location exemptions, for example schools or event spaces where charging would not be feasible. Businesses would be expected to keep appropriate records to support compliance. Options are also being presented on how net proceeds would be handled. The previous implementation of the plastic bag carrier charge was highlighted as an example of a similar approach already taken.

RRG members provided feedback on the proposals. Key points raised were:

• Members were reassured by the timing. There had been concerns over the work progressing without appropriate consideration and implementation and officials were able to set out that policy development is progressing at pace in a structured way.
• Comparisons with the plastic bag charge are useful but should not be relied upon. Members believed the difference could be significant, and even where there were similarities the plastic bag charge had driven changes in the type of bag used.
• Officials should consider the unintended consequences on behaviour and the type of cups used. If compostable single use cups were subject to the charge, then businesses may be incentivised to use cheaper plastic disposable cups. It should also be clear what counted as a reusable cup, to ensure that they were meeting expectations.
• It was important to set out how businesses were expected to calculate their administration costs to ensure appropriate levels of funds. The RRG also queried to whether the 25p charge was expected to be adjusted in the future, for example to reflect inflation. If the Scottish Government had views on what funds should be used for, this should be clearly set out.
• While enforcement powers may be provided, given resource constraints officials were advised it was unlikely to be a priority for enforcement action. If the requirements were largely self-regulated, this may not be an issue. Enforcement should also consider interactions with other, possibly reserved, regulations for example on price marking or consumer protection.
• Enforcement officers and businesses would also be wary of food safety when dealing with reusable cups. Without appropriate washing/rinsing facilities business may be reluctant to provide drinks in reusable cups, where they opened themselves to increased risks..
• Specific business models may be more affected by the charge, for example where customers were expected to serve their own drinks.

Members of the RRG noted that significant business engagement had been undertaken and the proposals had been updated to reflect the feedback and evidence to date. However, it was not clear from the Business and Regulatory Impact Assessment (BRIA) what had evolved during the policy development process so far and- drawing this out more clearly would help demonstrate the policy’s evolution and why it has progressed as it has.

It was noted that the BRIA reflected consumer impact, but the Fairer Scotland Duty Assessment did not contain the same information and detail. It was recommended that officials engaged with Consumer Scotland on this and circular economy policy more widely to consider consumer interaction. Many of the policies in this portfolio area have an intended and unintended impact on consumers, but often individuals found it difficult to understand how each individual requirement/ change they were subject to fitted with overall aims. 

Any other business

It was agreed that the next meeting will take place in person on 26 September 2024.