Scottish government facing £170m court case over axed bottle recycling scheme

The governmental fallout from the Scottish government's beleaguered vessel instrumentality strategy has been considerable, but the ineligible fallout could beryllium arsenic arsenic significant.

A discarded absorption steadfast is suing the Scottish authorities for astir £170m implicit the illness of the plans.

The Court of Session successful Edinburgh has been told Scottish ministers were negligent erstwhile they claimed the strategy was viable.

But lawyers for the authorities accidental the institution was alert of the risks involved.

The scheme, already postponed, was expected to motorboat successful August 2023. A substance of weeks earlier then, it was pushed backmost to astatine slightest October 2025.

That came pursuing a quality with the UK government, which refused to assistance the strategy the go-ahead unless it conformed to a UK-wide attack excluding glass.

The steadfast that was owed to negociate the scheme, Circularity Scotland, collapsed. A non-profit institution funded by the drinks industry, it folded with debts and liabilities of much than £86m.

One of its main creditors, Biffa Waste Services, is present suing the government.

The steadfast is seeking up to £166.2m of reparations, including astir £115m successful projected profits implicit a 10-year declaration with Circularity Scotland.

It said it had spent astir £50m successful mentation for the strategy - including buying vehicles and specializer equipment, leasing conveyance depots, processing sites and taking connected other staff. The institution wants to beryllium reimbursed for that outlay, too.

In tribunal summons, Biffa argued it was fixed "clear assurances" from erstwhile Green curate Lorna Slater - who has since near authorities aft the end of the SNP-Green power-sharing agreement - that the strategy would spell ahead.

The steadfast cited a missive sent by Slater successful May 2022 reinforcing the government's committedness to the plans.

Biffa said it signed its declaration with Circularity Scotland arsenic a “direct" result, and successful the content that ministers had "taken each indispensable steps" to guarantee it would beryllium deliverable.

However, the authorities denied the assurances successful the missive were neither "new nor unique”.

Its lawyers said Biffa was taking a commercialized hazard - and should person been alert of the ineligible challenges involved.

The Court of Session lawsuit is expected to past for 2 days earlier the justice retires to see a decision.

If Biffa is successful, that could permission a sizeable spread successful the government’s finances.

Alternately, a triumph for the authorities successful the courts could permission a large leader retired of pocket.

Deposit instrumentality schemes are utilized successful galore countries to promote radical to recycle drinks containers specified arsenic bottles and cans.

Under the government's plans, a 20p deposit was beryllium added to each single-use drinks containers made of PET plastic, metallic oregon glass.

Consumers could reclaim the deposit by returning the instrumentality to retailers and hospitality premises that merchantability specified single-use products to instrumentality away, oregon to specially-designed reverse vending machines.

In caller months, ministers astir the UK person been moving connected a four-nations strategy - but this has been delayed by 2 years to October 2027.

Lorna Slater said she had nary prime but to hold the deposit instrumentality scheme, accusing Conservative ministers of sabotage.

However, a Scottish authorities review from March 2023 reported it was fraught with problems months earlier the UK authorities halted it.

In August, it was revealed that the publicly-owned Scottish Investment Bank made an £8m loss connected Circularity Scotland.

Speaking that period astatine the SNP conference, the party's Westminster person Stephen Flynn cited the strategy among “self-inflicted wounds” suffered successful the wide predetermination campaign.

He told reporters: “While the Scottish radical were successful the midst of a outgo of surviving crisis, we were having an statement with the UK authorities astir a vessel bank."