BIFFA has received approval from the Court of Session to proceed with legal action against the Scottish Government over losses incurred as a result of Scotland’s failed deposit return scheme (DRS).
The waste management firm had been named as the logistics partner for the scheme in 2022 by Circularity Scotland Limited, with Biffa proceeding to invest ‘significant’ sums to support DRS’ implementation in August 2023.
However, Circularity Scotland Limited entered administration in June 2023 after the Scottish Government delayed DRS until at least October 2025 due to a dispute with the UK Government over the inclusion of glass in the scheme.
The collapse meant that Biffa’s DRS contract was terminated, despite the firm saying it had previously been assured by the Scottish Government that the scheme was viable and would go ahead.
Biffa is now seeking up to £166.2 million reparations, with the figure based on £114.8 million in projected profits from the 10-year contract and Biffa’s spend of £51.4 million on vehicles, infrastructure, and equipment ahead of the scheme’s launch.
A Biffa spokesperson 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 Scottish Government had the necessary mandate to enact the implementation of the scheme.
“We are pleased to have received approval from the Court of Session to proceed with legal action to seek appropriate compensation for the losses Biffa has incurred. As the case is ongoing, we are unable to comment any further at this time.”
A Scottish Government spokesperson said, “The Scottish Government cannot comment on live litigation.”
