Full Breakdown
Court Dismisses Biffa's £50 Million Claim Against Scottish Government Over Deposit Return Scheme
1/17/2026, 8:39:33 AM
Legal Ruling on Biffa's Compensation Claim
A recent ruling by the Court of Session has dismissed a £50 million compensation claim brought by waste management firm Biffa against the Scottish government regarding its failed deposit return scheme (DRS). Biffa sought £51.4 million in damages, arguing that a letter from former Scottish Greens co-leader Lorna Slater in May 2022 misrepresented the viability of the DRS, which was intended to launch in August 2023. The court found that the letter did not constitute negligent misrepresentation and that Biffa's interpretation was overly optimistic.
Background of the Deposit Return Scheme
The DRS was designed to charge consumers a deposit on single-use bottles and cans, refundable upon their return for recycling. However, the initiative faced significant hurdles, particularly after the UK government, under then Scottish Secretary Alister Jack, denied the Scottish government an exemption from the Internal Market Act (IMA). This exemption was crucial for the inclusion of glass bottles in the scheme, ultimately leading to the project's collapse.
Court's Findings
Judge Lord Sandison ruled that Biffa's claims were unfounded, stating that a "reasonable person" could not have interpreted Slater's letter as providing any assurance regarding the scheme's legislative viability. He emphasized that if Biffa had concerns about potential legal issues, they should have sought clarification, which they failed to do. The judge concluded that the Scottish government did not breach any duty of care to Biffa, and the statements made in the letter were accurate.
Criticism and Opposition
Biffa's representatives expressed disappointment with the ruling and indicated they would review their legal options. Alister Jack criticized the Scottish government for encouraging investment without adequately disclosing the associated risks. In contrast, Slater defended her letter, asserting it was intended to reassure Biffa of the government's commitment to the DRS, not to detail every potential risk.
Broader Implications
The case has sparked discussions about the relationship between the Scottish and UK governments, with a spokesperson for the Scottish Greens highlighting the need for Scotland to have the same powers as other self-governing nations. They argued that the failure of the DRS exemplifies the detrimental impact of Westminster's decisions on Scottish initiatives.
Verbatim Quotes
- “The court is not concerned with the question of who (if anyone) ought to be regarded as bearing political responsibility for the failure of the Scottish deposit return scheme to launch in August 2023.” — Lord Sandison
- “amounting to a general statement that there was no risk that the scheme would not be proceeding and that all would be well” — Lord Sandison
- “MSPs voted to introduce a recycling scheme, with businesses investing money to make it happen.” — Scottish Greens spokesperson
This ruling marks a significant moment in the ongoing discourse surrounding Scotland's legislative autonomy and the complexities of intergovernmental relations in the UK.
