Biffa approved to sue Scottish Government for lost investment and earnings

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Biffa reckons it is owed millions for what it lost in the DRS collapse

BIFFA, the company contracted to administer the Scottish Government’s failed Deposit Return Scheme (DRS), has been given permission to sue ScotGov over its handling of the scheme.

The DRS was originally scheduled to go live in 2023. However, after being refused an exemption to the UK’s Internal Market Act, the Scottish Government was forced to delay the scheme in order to link with Westminster’s own UK-wide plan.

The UK scheme is expected to go live in 2027 at the earliest.

Biffa had appealed to the Court of Session for permission to seek reparations, which it said amounted to over £51m in investment costs and a further £114m in lost profits.

A spokesperson for Biffa told SLTN’s sister title, Scottish Grocer, that Biffa “invested significant sums to support (DRS’s) timely and successful implementation”.

“This was done in good faith and on the expectation and understanding that the Scottish Government had the necessary mandate to enact the implementation of the scheme. 

“We are pleased to have received approval from the Court of Session to proceed with legal action to seek appropriate compensation for the losses Biffa has incurred.”

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