Biffa sues Scottish ministers for £200m over failed bottle deposit scheme

Biffa Waste Services Ltd has launched legal action to recover around £200 million from Scottish ministers, citing significant losses from investments in the government’s aborted bottle recycling scheme.

The company’s legal team has brought a case in the Court of Session, Scotland’s highest civil court, seeking to recover £150 million in losses suffered as a result of the collapse of the SNP’s flagship and the Greens, along with the resulting lost profits. Biffa is represented by Roddy Dunlop KC, Dean of the Faculty of Lawyers.

Biffa claims the Scottish Government misrepresented the viability of the scheme by providing personal guarantees from Green Party co-leader Lorna Slater, which led to Biffa investing £55 million in vehicles and equipment in preparation for the scheme. Slater, who served as Minister for Green Skills, Circular Economy and Biodiversity from 2021 to this year, later scrapped the scheme in June last year.

The cancellation of the scheme followed the UK government’s refusal to allow full exclusion from the Internal Market Act, which prevented Scotland from incorporating glass into its operations. Biffa has reportedly invested more than £65 million in preparation for the scheme.

A source revealed to the Sunday Mail newspaper that Biffa agreed to the contract based on “written assurances from Lorna Slater about the feasibility of the scheme and the Scottish Government’s commitment to it.” The source added that Biffa believes the Scottish Government has “carelessly misrepresented the guarantees it has given” and failed to mention the need for passage of the UK Internal Market Act.

A spokesperson for Biffa said: “Biffa was selected by Circularity Scotland Limited as the logistics partner for the delivery of the Scottish deposit system and invested significant amounts to support its timely and successful implementation. This was done in good faith and with the expectation and understanding that the implementation of the plan was mandated by the Scottish Government.

“Having carefully assessed our position with our advisors, we can confirm that we are taking legal action to seek appropriate compensation for the losses suffered by Biffa.”

A Scottish Government spokesperson responded: “The Scottish Government cannot comment on ongoing legal proceedings.”

The deposit system aimed to encourage recycling by imposing a 20 cent deposit on each beverage container, which is refundable when the packaging is returned. Biffa was appointed to collect all recycled containers across Scotland on a ten-year contract, with profits expected to exceed £100 million.