A waste firm has started legal action against the Scottish government over a £200m financial loss it says it incurred over the delayed bottle deposit return scheme (DRS).
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. The scheme will now not be rolled out until at least October 2025.
Circularity Scotland was appointed as the firm to oversee the deposit scheme. Circularity Scotland later went into administration, with Biffa Waste one of its largest creditors.
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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 Scottish government said it could not comment on the ongoing legal action at the Court of Session.
Biffa said: “Biffa was selected by Circularity Scotland 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 advisers, we can confirm that we are taking legal action to seek appropriate compensation for the losses Biffa has incurred.”
