A Scottish court has dismissed a £50 million damages claim brought by waste management firm Biffa against the Scottish government, following the collapse of the country’s long-debated deposit return scheme (DRS).
Biffa had argued that a 2022 letter from former Green minister Lorna Slater effectively guaranteed the project’s delivery, leading the company to commit millions as a logistics partner. However, Lord Sandison, sitting at the Court of Session, ruled that Biffa’s interpretation amounted to “wishful thinking”, finding no evidence that the letter offered any formal assurance.
The decision ends a two-year legal battle sparked by the government’s withdrawal of the scheme in 2023 after disputes with Westminster over the Internal Market Act. The DRS, designed to boost recycling rates through a 20p deposit on cans and bottles, was ultimately deemed unviable in its original form.
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Biffa said it was now reviewing the judgment with its legal advisers, while a Scottish Greens spokesperson reiterated that the programme’s failure underlined the limitations of devolved powers in environmental policy.
The ruling also noted that Ms Slater had acted in good faith and that officials had not intentionally concealed potential legal complications surrounding the implementation of the scheme.
