Waste firm sues Scottish government over collapsed deposit return scheme

Waste management firm Biffa has begun legal action against the Scottish government for a £200 million financial loss it claims it suffered by investing in the deposit return scheme (DRS) which was meant to go live last summer.

Biffa, which is headquartered in High Wycombe, had invested in the recycling scheme that was set to be up and running in 2023. But the scheme was blocked after the UK government refused to grant an exemption to the Internal Market Act unless a UK-wide approach which excluded glass was adopted. A UK-wide scheme is now planned but in April it was announced that this had been put back until 2027.

Biffa entered a ten-year deal to collect the recycled containers in Scotland but now is suing the Scottish government for lost profits on top of the money it invested.

The waste management firm was named as the Official Logistics Provider for DRS in 2022 by the now defunct scheme administrator Circularity Scotland.

A spokesperson for Biffa said, “Biffa was selected by Circularity Scotland Limited (CSL) as the logistics partner for the delivery of the Scottish Deposit Return Scheme and invested significant sums to support its timely and successful implementation.

“This was done in good faith and on the expectation and understanding that the delivery of the scheme had been mandated by the Scottish Government. Having carefully reviewed our position with our advisors, we can confirm that we are taking legal action to seek appropriate compensation for the losses Biffa has incurred.

“Given the legal action, we are unable to comment any further at this time.”

During a short virtual hearing last week, advocate Roddy Dunlop KC told Lord Clark that he was representing Biffa while advocate Gerry Moynihan KC told the court that he was acting for the Scottish ministers, stated the reports. It was agreed that a debate should take place later this year into legal issues affecting the case.