Why is the SNP government facing £170m court case over recycling scheme?

The scheme, already postponed, was supposed to launch in August 2023. A matter of weeks before then, it was pushed back to at least October 2025.

That came following a dispute with the UK government, which refused to grant the scheme the go-ahead unless it conformed to a UK-wide approach excluding glass.

The firm that was due to manage the scheme, Circularity Scotland, collapsed. A non-profit company funded by the drinks industry, it folded with debts and liabilities of more than £86m.

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

The firm – which was appointed to collect recycled containers – is seeking up to £166.2m of reparations. This includes about £115m in projected profits over a 10-year contract with Circularity Scotland.

The rest of the total is made up of about £50m Biffa said it spent in preparation for the scheme – including buying vehicles and specialist equipment, leasing vehicle depots, processing sites and taking on extra staff.