Humza Yousaf says ‘no case’ for Scottish Government to pay compensation over deposit return scheme

The First Minister claimed any failure of delivery was down to the UK Government blocking the roll-out, which has essentially seen it scrapped in its current form.

Mr Yousaf claimed the recycling initiative now being delayed to at least 2025 was an example of how “devolution is becoming unworkable”.

He told the BBC’s Sunday with Laura Kuenssberg show that the UK Government had sought to “sabotage” the scheme at the 11th hour.

Mr Yousaf said: “This is just another example of how, frankly, devolution is becoming unworkable. We had regulations passed by the Scottish Parliament, which included glass within our deposit return scheme, only for the UK Government at the 11th hour trying to sabotage that scheme.

"This is another example of the pattern of behaviour that we are battling against from the UK Government, that is trying to undermine devolution.”

He was asked if the Scottish Government would pay compensation to businesses which had paid millions to prepare for a scheme which is now not going to happen.

The First Minister answered: “We don’t believe there’s a case for the Scottish Government to need to compensate because the action we’ve had to take is because of that 11th hour, last-minute intervention from the UK Government, which has meant that a Scottish scheme, unfortunately, isn’t viable.”

The DRS would have seen an extra 20p added onto drinks containers, which would be refunded when the container is returned to a retailer or a hospitality venue.

However, Scotland needed an exemption from the UK-wide Internal Market Act before it was able to introduce its own DRS - an exemption the UK Government said would only be granted if the scheme does not include glass.

This led to a constitutional argument, with the SNP-Green coalition accusing the UK Government of undermining devolution before conceding the plans would not go ahead on Tuesday.

In the same interview, Mr Yousaf was asked about the ongoing police investigation into the SNP’s finances.

He said he could not comment on this but that he would tell party members and supporters that backing for independence is still “rock solid”.

The SNP leader said he had spoken to Nicola Sturgeon recently and said she was “in a good place and doing well”.

He continued: “Why would I not want to get some advice from arguably one of the best politicians, the most impressive politicians, Europe has seen over the last couple of decades?”

Asked about the prospect of a deal with Labour after the next general election, he said a request for a second independence referendum would be “top of the list” of his demands.

He said the SNP would not prop up a Tory minority government but noted that minority governments often needed help passing budgets.

Mr Yousaf said: “We would never prop up a Conservative government ever. Underline that, put that in bold.

“But, of course, if Labour do not want to co-operate with us, then we would make life very difficult for them.”

This could include the legislative process and the passing of budgets, he said.