Scottish Government Faces £170m Lawsuit Over Flawed Bottle Return Scheme

The Scottish government is embroiled in a significant legal battle over its troubled deposit return scheme, initiated to encourage recycling of single-use drinks containers. A waste management company, Biffa Waste Services, is suing for nearly £170 million, claiming negligence from the Scottish ministers after the project’s collapse and subsequent delays. Originally scheduled for launch in August 2023, the scheme’s implementation has been stalled until at least October 2025 due to concerns raised by businesses and a standoff with the UK government regarding compliance issues, particularly regarding glass containers.

The lawsuit stems from Biffa’s claims that they received assurances from former minister Lorna Slater that the scheme was viable, prompting them to incur significant upfront costs for equipment and personnel in preparation for the project. Biffa argues these assurances led them to believe the scheme would successfully launch, only for it to be delayed multiple times, causing financial losses. The government, however, contends that Biffa was aware of the risks involved and emphasizes their stance that the case should be dismissed.

As the case progresses through the Court of Session, the outcome could either strain the Scottish government’s finances with a possible significant payout or leave Biffa with substantial losses. This legal dispute is taking place amid rising tensions over Scotland’s environmental policies, as highlighted by the recent governmental review criticizing the viability of the scheme even before UK objections were raised. The delay has been politically damaging for the SNP, especially during a time when the country is facing a cost of living crisis.