The Scottish Government is facing a potentially costly High Court battle over the failed deposit return scheme (DRS), after a waste management company launched a £170 million lawsuit. The case, which will be heard at the Court of Session in Edinburgh, centres on claims that ministers’ handling of the project caused substantial financial losses for the firm.
The legal action follows the collapse of plans to introduce a national bottle and can recycling initiative aimed at boosting environmental sustainability. The DRS was expected to make consumers pay a small refundable deposit on drinks containers, encouraging greater recycling rates. However, the initiative was beset by delays, political disputes and ultimately scrapped after failing to gain UK Government approval for its inclusion of glass.
The claimant argues that it invested heavily in preparation for the scheme, alleging that the Scottish Government’s “mismanagement and lack of clarity” directly led to its financial setback. Industry insiders said the outcome of the court case could set a legal precedent for future public-private environmental partnerships gone wrong.
Environmental campaigners have expressed frustration over the collapse, saying Scotland’s progress on green targets has been undermined. Ministers maintain that they acted appropriately in light of the regulatory complications surrounding cross-border trade and Westminster’s intervention.
The case is due to be heard later this year, with significant financial implications if the government loses.
