Circular economy and waste route map to 2030: business and regulatory impact assessment

Consumer Duty

192. The Consumer Scotland Act 2020 defines a consumer as an individual, or a business no larger than a small business, that “purchases, uses or receives, in Scotland, goods or services which are supplied in the course of a business carried on by the person supplying them”.^[100] The 2020 Act also introduced a duty (“the consumer duty”) on ‘relevant public authorities’ in Scotland, when making decisions of a strategic nature about how to exercise their functions, to have regard to the impact of those decisions on consumers in Scotland, and the desirability of reducing harm to consumers in Scotland.

193. While this Duty came into force in April 2024, throughout the development of the Route Map and its impact assessments since 2021, potential impacts on consumers have been carefully considered at a strategic level. For example considering impact on the quality, availability or price of any goods or services in a market; on the essential services market (e.g. energy or water); the storage or increased use of consumer data; opportunities for unscrupulous suppliers to target consumers; the information available to consumers on either goods or services, or their rights in relation to these; and the routes for consumers to seek advice or raise complaints on consumer issues.

194. The assessment found that, at a strategic level, the Route Map publication itself is unlikely to have a direct impact, but that the shift to a circular economy and sustainable resource use driven by the Route Map’s measures will benefit consumers overall, and reduce the harm inflicted by the current “take, make and dispose” model. Sustainable resource use is key to strengthening communities by providing local employment opportunities, lower-cost options to access the goods Scottish consumers need, and tackling existing inequalities. Its measures also support public services to become more sustainable, improving productivity and reducing waste, and provide a key opportunity to improve the information available to consumers on related goods and services. For example, modernised recycling, reuse and waste services will be co-designed with communities to ensure consumers (e.g. households and businesses) are at the heart of how services are designed and operate, and that communication with service users is carefully considered. There are also specific actions to improve the reuse experience for consumers, which touches upon the information available to consumers, and the routes available for consumers to seek advice.

195. The Route Map’s priority actions are designed to make the sustainable choices the easy choices for consumers, and benefit consumers who will see positive impacts for the climate, environment, economy and public services. More broadly, it is anticipated that by reducing demand for new products and virgin materials and driving down the amount of material disposed of via landfill and energy from waste, a range of negative pollution impacts on biodiversity, air, bodies of water, and soils can be avoided. Greenhouse gas emissions from material production and manufacturing processes as well as waste management activities are expected to be minimised, with material assets being kept in use for as long as possible through circular practices and improved recycling. Indirect positive impacts are anticipated in relation to the Scottish landscape, through reduced demand for unsightly disposal and extraction infrastructure, and the potential to reduce litter and flytipping. Circular practices in the construction and demolition sector should also encourage the retention, reuse and repair of historic environment assets and materials, thus benefitting Scotland’s cultural heritage and historic environment.

196. The Route Map’s measures are also likely to reduce opportunities for unscrupulous suppliers to target consumers, for example by improving communication standards around waste and recycling services to help make the right choices easier, increasing transparency (e.g. end destination reporting for recyclate) for consumers, and utilising new powers from the Circular Economy Act around waste and recycling, such as strengthening the Householder's Duty of Care in relation to household waste.

197. In terms of impacts on the essential services market (e.g. energy or water) and the storage or increased use of consumer data, the Route Map’s measures are unlikely to have a direct impact, but it will be important to consider these areas further as measures are developed. For example, in developing the Sector-Led Plan for Energy from Waste, considering its actions and the impact they could have on the energy market; and the impact measures like mandatory public reporting of food waste and surplus could have on the use of consumer data as they are being designed.

198. While the overall direction of the Route Map is designed to benefit consumers, this BRIA and the Route Map’s other impact assessments also identify some potential costs for consumers, or risks of unintended negative consequences. For example, placing a charge on specific single-use items would directly increase the price of goods available on the market (depending on the extent that a business chooses to pass on the cost), and there may be initial cost implications for consumers when pursuing reusable product options. It will be important in the development and implementation of actions to consider further assessment and monitoring to ensure any negative impacts are identified and mitigated. For example, in undertaking the co-design of the statutory Code of Practice for household waste services, alongside a review of waste and recycling service charging, to consider the impacts of any outcomes of this work on consumers.

199. It is important to recognise that Route Map measures are at different stages of development, and specific impacts on consumers will depend on the final design of policies. As with the business and regulatory impact assessment, as we move into the implementation phase of the Route Map, the Scottish Government reiterates its commitment to work in partnership with stakeholders to assess the full impacts of specific measures on consumers as they are further defined. Further assessment will be undertaken for individual measures, where appropriate, as they are being developed in the future. This will take into consideration the findings from the recent Consumer Scotland “Consumers and the transition to a circular economy” report.^[101]