Lorna Slater, the minister for green skills, circular economy and biodiversity, announced the delay in a statement to the Scottish parliament on Wednesday.

First Minister Humza Yousaf had earlier warned that it was in "grave danger" after the UK government ruled it could only go ahead without glass bottles included in it.

Environmental campaigners called on Mr Yousaf to "hold his nerve" and soldier on with the country's first deposit return scheme (DRS) with cans and plastic bottles.

Ms Slater said: "I told parliament yesterday that our scheme cannot proceed as planned. The refusal of the UK government alone to budge on glass makes that obvious.

"As of today, it is now clear that we have been left with no other option than to delay the launch of Scotland's DRS until October 2025 at the earliest based on the UK government's current stated aspirations."

The controversial scheme was due to start in Scotland in August but was pushed back to March 2024 after Mr Yousaf was installed as first minister.

With similar schemes in the rest of the UK not due to come into effect until 2025, the Scottish government sought an exemption from the Internal Market Act - which regulates trade in the different parts of the UK following Brexit.

Westminster granted a limited exemption, but stipulated glass could not be part of it.

Mr Yousaf argued without a full exemption, the UK government was "in danger of sinking this scheme in its entirety".

He wrote to Prime Minister Rishi Sunak, calling for glass to be included. The request was knocked back to ensure "simplicity and interoperability".

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In a letter on Monday, UK government ministers Michael Gove, Alister Jack, and Therese Coffey said the limited exemption provided a "practical solution to proceed with the Scottish government's scheme, balanced with the need to uphold the UK's internal market (UKIM), ensuring a level playing field for all British businesses and consumers as we maximise the benefits of aligned schemes across the UK in the future".

Ms Slater previously admitted that the industry has "invested hundreds of millions of pounds" towards the scheme but has dodged questions over who would be liable for compensation if it fails to come to fruition.

Ms Slater said she was committed to a DRS.

She said: "Scotland will have a deposit return scheme. It will come later than need be. It will be more limited than it should be. More limited than parliament voted for."

She added: "And these delays and dilutions lie squarely in the hands of UK government that has sadly seemed so far more intent on sabotaging this parliament than protecting our environment."

The Scottish Greens co-leader pledged to work with the UK government and others to "play the hand we have been dealt" for a cleaner environment, less waste and to meet climate targets.

Gavin Partington, director general of the British Soft Drinks Association (BSDA), welcomed the decision.

He added: "BSDA members have long supported the introduction of an industry-led, interoperable DRS run on a not-for-profit basis to help support a circular economy, reducing litter and increasing recycling and they have made significant investments of money, resource and time over the last few years to help get DRS off the ground.

"We now urge the UK government to publish a blueprint for how it intends to achieve an October 2025 start date, particularly regarding how it intends to fulfil the conditions set out in its letter to the Scottish government.

"BSDA members remain committed to working with the UK government and devolved governments to help ensure DRS can be delivered effectively and efficiently for consumers and businesses alike."