Biffa preparing £100m lawsuit against Scottish government over DRS

Waste agency Biffa has “threatened” to sue the Scottish authorities for £100 million over its failed deposit return scheme (DRS), in keeping with a report within the Each day Report.

Biffa was the Scottish DRS’s official logistics service supplier and had invested over £65 million in preparation for the scheme earlier than it was delayed till a minimum of October 2025. Biffa declined to remark when approached by Round On-line.

The Scottish scheme was scrapped after the UK Authorities declined a request for full exclusion from the Inner Market Act. This meant that Scotland couldn’t embrace glass in its DRS. Following the choice, Round Economic system Minister Lorna Slater accused the UK authorities of sabotage.

Earlier than the delay was introduced, Biffa CEO Michael Topham informed Humza Yousef that cancelling or considerably delaying the DRS would ship a “seismic and detrimental sign” to companies concerned and known as for the scheme to proceed with out glass.

Reacting to the potential lawsuit, Ex-SNP rural affairs minister Fergus Ewing described it as “surprising” and questioned whether or not others would observe Biffa’s lead. The British Delicate Drinks Affiliation confirmed to Round On-line it was looking for compensation from the Scottish authorities final 12 months.

Nonetheless, first minister of Scotland Humza Yousef has beforehand dominated out paying compensation to companies that invested in Scotland’s DRS on the premise it will go stay earlier than different UK nations and embrace glass. Chatting with the BBC’s Sunday with Laura Kuenssberg, Yousef mentioned he doesn’t imagine there’s a “case” for the Scottish authorities paying compensation.

Ewing additionally known as for a ministerial assertion and mentioned the Scottish authorities “should reply what number of extra tens of tens of millions of kilos the bottle scheme will value the taxpayer”. The Scottish Authorities informed the Each day Report it wouldn’t touch upon a authorized menace from Biffa and mentioned it was “dedicated to the supply of a profitable DRS”.

Final 12 months, the scheme administrator for Scotland’s DRS Circularity Scotland collapsed with money owed and liabilities of over £86 million, filings revealed, placing 60 jobs in danger.

Scotland’s scheme was thrown into additional doubt final week when the Surroundings Secretary Steve Barclay informed MPs the 2025 DRS begin date was “unrealistic” and 2027 was now “extra possible”.

Barclay additionally mentioned the UK authorities would decline a request from the Welsh authorities for full exclusion from the Inner Market Act, which might have allowed them to gather glass as a part of its DRS. The Surroundings Secretary additionally emphasised his want for any DRS to be aligned throughout all UK nations.

“I’m not ready to offer an actual date as a result of, as a Unionist, one of many issues that has been essential to me is now we have an method that’s interoperable throughout the UK,” Barclay informed the Surroundings, Meals and Rural Affairs Committee.