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The Scottish government is facing a multimillion-pound lawsuit from waste management company Biffa over the collapse of its planned bottle return scheme. The firm is demanding almost £170m in recompense from the Scottish government, claiming that its ministers negligently stated that the scheme was viable.
The Scottish bottle return scheme was due to launch in August 2023. However, the start date was postponed to at least October 2025 following a dispute with the UK government. The UK government refused to grant the scheme approval unless it conformed to a UK-wide model excluding glass.
Circularity Scotland, the non-profit which was due to manage the scheme, folded with debts and liabilities exceeding £86m, causing Biffa, one of Circularity Scotland’s main creditors, to file the lawsuit. Biffa is seeking over £166m in reparations for its expenses, including approximately £115m in projected profits over a ten-year contract with Circularity Scotland.
Biffa claims that it was given “clear assurances” from former Green minister Lorna Slater that the Scottish bottle return scheme would go ahead. Slater left government after the end of the SNP-Green power-sharing agreement, but Biffa cited a letter sent by Slater in May 2022 that reinforced the government’s commitment to the plans.
The Scottish government has responded to the lawsuit by claiming that Biffa was aware of the legal challenges involved and was taking a commercial risk. The case, which is expected to last for two days at the Court of Session before a decision is made, could result in significant financial repercussions for the government or Biffa depending on the outcome
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