Waste Management Update
Argyll and Bute Council · 18 December 2025
Back to Environment, Development and Infrastructure Committee — 18 December 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE ROADS AND INFRASTRUCTURE 18 DECEMBER 2025 WASTE MANAGEMENT UPDATE 1.0 EXECUTIVE SUMMARY The regulatory landscape that the council operates in is rapidly changing. There are several long standing and emerging challenges that the council is addressing, and the measures we are taking will ensure that we continue to be compliant with environmental legislation. They will also ensure that our services are environmentally and financially sustainable. Whilst these challenges have significant implications for all Scottish local authorities in terms of compliance, infrastructure, and strategic planning, the council’s unique geography and contractual arrangements make this even more challenging. The principal challenges that the council faces are as follows • the ban on landfilling Biodegradable Municipal Waste, which will come into effect on 1 January 2026. • the Extended Producer Responsibility scheme for packaging, which came into effect from 1 April this year • a Deposit Return Scheme for drinks containers, which will come into effect on 6 October 2027, and • the likely announcement of a statutory code of practice at the end of 2026 which will replace the existing voluntary Household Waste and Recycling Charter The financial implications of providing the council’s waste management services are explored in the report. The overall budget for these services is £15.437m. There are a number of components within this budget, including the costs that the council incurs directly in operating landfill sites at Glengorm on Mull, Gartbreck on Islay, payments that the council makes to Biffa through the PPP contract for waste management in Kintyre, Oban and Lorn, Mid Argyll, Cowal and Bute, and the cost of sending waste from the Helensburgh and Lomond area for energy recovery. The council has also started to receive income from the new extended producer responsibility scheme whereby a levy is being placed on packaging to pay for efficient and effective collection and recycling of these materials.
Page 2
A multi-disciplinary team has been established within the council, and the team is working at pace to address these multiple challenges. Officers have also been working with partners such as SEPA, the Scottish Government, Zero Waste Scotland and Biffa to develop effective responses to these changes. There are significant financial, legal and reputational risks associated with the level of uncertainty that the council is operating in, and officers will continue to work with elected members and partners to mitigate them. The purpose of this report is to provide an update on the work carried out to date. Members of the Environment, Infrastructure and Development Committee are invited to note the contents of this report.
Page 3
ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE ROADS AND INFRASTRUCTURE SERVICES 18 DECEMBER 2025 WASTE MANAGEMENT UPDATE 2.0 INTRODUCTION 2.1 This report provides an update to Members on the changes to the regulatory landscape within waste management and the impact and challenges this has on the Council. 2.2 Over the next two years • the ban on landfilling biodegradable municipal waste, which will come into effect on 1 January 2026. • the end of the existing PPP contract for waste management in Mid Argyll, Kintyre, Cowal and Bute, and Oban and Lorn in September 2026 • the extended producer responsibility scheme for packaging, which came into effect from 1 April this year • a deposit return scheme for drinks containers, which will come into effect on 6 October 2027, and • the likely announcement of a statutory code of practice at the end of 2026 which will replace the existing voluntary Household Waste and Recycling Charter
Page 4
2.3 The overall budget for these services is £15.437m. There are a number of components within this budget, including the costs that the council incurs directly in operating landfill sites at Glengorm on Mull, Gartbreck on Islay, payments that the council makes to Biffa through the PPP contract for waste management in Kintyre, Mid Argyll, and Bute, and the cost of sending waste from the Helensburgh and Lomond for energy recovery. The council has also started to receive income from the new extended producer responsibility scheme whereby a levy is being placed on packaging to pay for efficient and effective collection and recycling of these materials. 2.4 A multi-disciplinary team has been established within the council, and the team is working at pace to address these multiple challenges. Officers have also been working with partners such as SEPA, the Scottish Government, Zero Waste Scotland and Biffa (our PPP contractor) to develop effective responses to these changes. 2.5 There are significant financial, legal and reputational risks associated with the level of uncertainty that the council is operating in, and officers will continue to work with members and partners to mitigate them. The purpose of this report is to provide an update on the work carried out to date. 3.0 RECOMMENDATIONS It is recommended that members of the Environment, Development and Infrastructure Committee - 3.1 Consider the contents of the report, 3.2 supports the application for exemption from the landfill ban at the landfill sites on Islay and Mull, and 3.3 delegates authority to the Executive Director of Development and Infrastructure to apply for exemptions at Dalinlongart and Lingerton landfill sites if required. 4.0 DETAIL Financial 4.1 The revenue budget available for managing the council’s waste is £15.712m for financial year 2025/26. 4.2 The council has set aside £3m in capital funds to deliver the infrastructure changes required to comply with the ban on landfilling BMW. £0.5m has been set aside to support the conversion of the former MBT plants at three Biffa sites to waste transfer stations. In addition, the Scottish Government has committed capital funding of £1.5m to support the council to comply with the landfill ban.
Page 5
4.3 At the council meeting on 26th November 2025, it was reported that funding from the Department of Environment, Food and Rural Affairs (DEFRA) funding in respect of pEPR for 2025-26 had been confirmed at £2.786m. This resulted in a reduced carry forward of £1.438m into 2026-27. The anticipated level of DEFRA funding available for 2026-27 has been confirmed at £2.851m. It remains uncertain as to whether this funding will be recurring at this level in 2027-28 and future years, and without a reduction in Scottish Government grant. At this stage, funding is assumed to continue into 2027-28 and future years at the 2026-27 level in the best case, at 50% of the 2026-27 level in the mid-range and £nil in the worst case scenarios. Funding conditions and future years budget pressures, in respect of potential new spending commitments, remain unclear. Update on progress on implementing the ban on landfilling municipal biodegradable waste 4.4 The previous report to the EDI Committee in June provided an update on the council’s progress in addressing the ban on landfilling biodegradable municipal waste (BMW). 4.5 The ban was originally announced in 2012, with an original implementation date of 1 January 2021. In 2020, this was deferred due to • a lack of energy from waste capacity in Scotland and • concerns about the resulting haulage of waste to landfill sites in England The new date for implementation was announced as 1 January 2026. 4.6 Argyll and Bute’s preparations for the ban have been complicated by the long- term PPP contract that has been in place for waste management since 2001. The contract covers the landfill sites at Dalinlongart near Dunoon, Lingerton near Lochgilphead, and the Waste Transfer Stations at Moleigh near Oban and Westlands on Bute. The contract comes to an end in September 2026. 4.7 In addition, the council operates its own landfill sites on Islay and Mull, and sends waste from the Helensburgh and Lomond area to energy from waste (EfW) facilities outside the area. 4.8 Since the beginning of this year, a multi-disciplinary team have been working at pace to develop solutions to both the landfill ban on 1 January 2026 and the end of the PPP contract in September 2026. It is a highly complex project, and work completed to date is as follows • The pre landfill (mechanical and biological) treatment plants at Moleigh, Lingerton, and Dalinlongart are no longer required as landfill will no longer be possible. These are being converted to straightforward transfer stations which are essentially large sheds that allow waste to be stored prior to onward transportation to EfW facilities outside of Argyll and Bute.
Page 6
• The existing waste transfer stations at the landfill sites on Islay and Mull have been upgraded to allow for the increased volume of waste that will be diverted from landfill on the islands. • The development of offtake and haulage contracts for the waste that will no longer be landfilled, and • Liaison with both Biffa and SEPA to ensure that the landfill sites can be closed early in line with the requirements of the operating permits in place • Working with haulage contractors and Calmac to ensure that there is sufficient transport capacity to transport waste from Argyll and Bute, particularly Islay and Mull. This work is almost complete, and there is a high level of confidence that the council will be able to comply with the ban on the mainland. 4.9 With regards to the islands, there is concern that ferry capacity and reliability will present significant barriers to getting waste from the islands. Whilst reliability over the last two years averages 92% for Mull and 90% for Islay, disruption has been as high as 30% on these routes. There are also occasions when the ferries are full and vehicles could be left behind. Finally, the closure of the landfills on Mull and Islay will present difficulties for a number of businesses on the island that rely on these sites for disposal of animal by-products. Whilst there are solutions available to this last issue, they will not be available by the time the landfill ban is introduced. 4.10 As a result of required treatment capacity and logistics yet to be in place, the regulator Scottish Environment Protection Agency (SEPA) issued a temporary regulatory position statement on 29 October 2025 to advise that the ban will not be enforced until 1 January 2028 at the earliest provided certain conditions are met. These conditions are as follows • Landfilling BMW is only acceptable where no viable alternative exists; • Operators must maintain records and report actions taken to reduce landfill reliance; and • SEPA will review progress regularly and adjust its position as new capacity comes online. 4.11 Officers consider that the council should apply for an exemption for the landfill sites on Islay and Mull. These exemptions have been prepared with the support of the council’s technical consultants, and will be submitted to SEPA in December 2025. 4.12 The exemptions will be granted for periods of 6 months, for a maximum of two years. This will provide time to develop solutions to concerns around haulage and the impact on businesses on these islands.
Page 7
4.13 With regards to the PPP sites, a considerable amount of work has been completed to upgrade them so that they will comply with the landfill ban. This work has included • Removing the plant and machinery previously used in the Mechanical and Biological Treatment (MBT) of waste before it was landfilled • Obtaining planning permission for the sheds at Dalinlongart and Lingerton to be operated as Transfer Stations • Removal of 7,800 tonnes of MBT by-product (Compost Like Output (CLO)) from the PPP sites • Liaising with SEPA on the closure and restoration of the closed landfill sites at Dalinlongart and Lingerton, and • Procuring contracts for waste to be transported from these sites to the central belt for conversion to Refuse Derived Fuel used in Energy from Waste facilities 4.14 It is therefore appropriate to continue to progress towards compliance with the landfill ban. Negotiations with Biffa on the variation on the PPP contract are not fully concluded, and officers are preparing an exemption form if these negotiations are not successfully concluded before the end of December. Development of waste management contract to supersede the existing PPP contract 4.15 The council entered into a PPP contract for the management of its waste throughout Argyll and Bute in September 2001. The contract was for 25 years and will end on 3 September 2026. 4.16 In 2012 the islands were removed from the contract, and the services and sites were in-sourced. The council has continued to provide these services and operate the landfill sites on Islay and Mull. 4.17 Whilst the contract has met the objectives that were originally set for it, implementing changes mid contract is particularly challenging. This can be demonstrated by the extensive work that has been carried out to amend the contract and payment mechanism to deliver the changes required to comply with the landfill ban. 4.18 At the same time, officers from the council’s legal, procurement, finance and waste management services have been working with external legal and technical advisors to re-procure the services currently provided by the PPP contract. 4.19 The services will be re-procured through a tendering process for a 5-year contract that will run from 4 September 2026 to 3 April 2032, with an option to extend for a further two years. This will allow the council to develop longer term arrangements to provide an overarching approach to minimising the impact that our waste has on the environment.
Page 8
4.20 An invitation to tender was published on 22 September 2025. The closing date for submissions was 21 November 2025. The tenders are currently being evaluated. The council intends to formally award the contract to the successful bidder on 30 January 2026. Mobilisation for the new contract will start on 31 January 2026. 4.21 The hand back process for the exiting PPP contract has started and will continue up to contract end on 3 September 2026. 4.22 Significant staff and financial resources have been allocated to reprocuring this contract as well as managing the amendment of the existing contract to ensure that it is landfill ban compliant. The introduction of the Extended Producer Responsibility scheme for packaging (pEPR) 4.23 The pEPR scheme went live on 1 April 2025. The scheme is designed to ensure that producers bear the full cost of managing packaging waste. Producers pay fees into the scheme based on the recyclability of their packaging in line with the “producer pays” principle. These fees are then redistributed to local authorities throughout the UK. Payments to local authorities are based on factors such as rurality, population density, tonnage of material managed and costs incurred. It is anticipated that producers will contribute £1.1 billion annually to the scheme. 4.24 In February of this year, the council anticipated that we would receive £3.847m from the scheme. This was to pay for “efficient and effective” collection and management services and was to cover the financial year 2025-2026. PackUK, the pEPR scheme administrator, have since confirmed that we will receive £2.786m. Officers have been engaging with PackUK to identify and understand reasons for the reduction in award. This process is ongoing. In the meantime, the scheme’s administrators will monitor our services to ensure that we continue to deliver value for money for the scheme. 4.25 The efficiency and effectiveness of our services will also be measured through existing data collection methods such as Waste Data Flow and financial reporting. The council has been placed in benchmarking family groups to allow comparison of performance. It is anticipated that from payments from the scheme will be based on performance from financial years 2027 – 28 onwards. Performance improvement plans are proposed for poorly performing councils and may result in financial penalties. 4.26 These arrangements are highly complex and are still to be finalised. Officers continue to lobby scheme administrators to ensure that the council’s payments accurately reflect the costs incurred in managing packaging waste in Argyll and Bute, and that our services meet the requirements of the scheme. Introduction of a Deposit Return Scheme for drinks containers 4.27 In parallel to the introduction of pEPR, a Deposit Return Scheme for drinks containers between 0.150l and 3.000l (excluding glass). The scheme will be introduced in October 2027.
Page 9
4.28 It is anticipated that the scheme will deliver a net reduction in costs for the council through reduced litter collection and recycling collection and management costs. 4.29 The council is currently modelling the implications of the scheme and the interdependencies that it has with pEPR for our services. The implications of the Circular Economy Act 2024 for the council 4.30 The original Household Recycling Charter (agreed by Scottish Government and COSLA in 2015) aimed to bring consistency to recycling services across councils. It was voluntary and supported by a Code of Practice. Under the Circular Economy (Scotland) Act 2024, this is moving to a statutory Code of Practice. Local authorities will be legally required to follow new standards for household waste collection and recycling. 4.31 The new Code will: • Set clear standards for recycling and reuse services. • Ensure consistency across Scotland while allowing flexibility for local needs. • Include steps for councils to improve the quality of material collected and reduce contamination. 4.32 This should result in • Modernised, redesigned recycling services: for example, twin-stream (paper / card in one bin and containers in another) or similar systems to improve material quality. • Performance monitoring: Stronger reporting requirements and possible statutory recycling targets for councils. • Behaviour change support: Communication toolkits (e.g., service change leaflets, bin hangers) are being updated to help councils engage with residents. 4.33 The current timeline for these changes is as follows • 2025: Consultation on strengthening household recycling services closed in June; procurement for co-design facilitation launched in July • 2026: Publication of the new statutory Code of Practice expected. • 2030: Full implementation aligned with Scotland’s Circular Economy & Waste Route Map targets. 4.34 The changes aim to increase recycling rates, reduce residual waste, and support Scotland’s net-zero and circular economy goals. A co-design process is underway (2024–2026) involving Scottish Government, COSLA, councils, and stakeholders to create a practical, high-performing system. 5.0 CONCLUSION 5.1 As outlined in the report, the regulatory and financial landscape that the council’s waste services currently operate in is rapidly changing. This pace of change is likely to continue over the next five to ten years.
Page 10
5.2 Council officers are working at pace with partners to manage multiple risks to the council, and measures are in place to mitigate these risks in the short to medium term. 5.3 Once the immediate risks around the ban on landfilling BMW and the award of a new contract to replace the existing PPP contract have been addressed, the council will start work on developing an overarching waste strategy to support the changes to national waste policy outlined in paragraphs 4.16 – 4.34. 6.0 IMPLICATIONS 6.1 Policy – None. 6.2 Financial – The financial implications are set out at paragraphs 4.1 – 4.3 of the report. 6.3 Legal – the existing PPP contract was not designed to be changed to the extent required to comply with the landfill ban. The change to both the contract and the payment mechanism is cumbersome and involved, and legal and financial advisers have been supporting the council to make the necessary changes. These will be in place for 31 December 2025. Notwithstanding this, on 29th October 2025 the Scottish Government announced that enforcement of the ban on landfilling BMW would be postponed until January 2028. This was done through a temporary Regulatory Position Statement. The statement set out the reasons for the delay as follows “not all required treatment capacity and logistics will be in place by the end of this year, although additional energy-from-waste facilities are being built and are expected to begin operating between 2026 and 2027 alongside ongoing efforts to reduce, reuse and recycle more waste.” Given the fragile supply chains that would need to be in place to meet the ban on Islay and Mull, the council has applied for an exemption for the landfill sites at Gartbreck and Glengorm. With regards to pEPR and DRS, these have been created under the Environment Act 2021. The legislation governing DRS (the Deposit and Return Scheme for Scotland Regulations 2020) does not directly impact council waste management services. However, the council is a retailer of drinks, and the requirement for council catering facilities to become return points is being investigated. The pEPR scheme is governed by the Producer Responsibility Obligations (Packaging and Packaging Waste) Regulations 2024. Under these regulations councils must demonstrate efficient and effective collection and disposal systems.
Page 11
The new statutory code of practice in Scotland, part of the Circular Economy (Scotland) Act 2024, introduces several legal implications for Scottish councils. These changes are designed to standardise recycling services, improve environmental outcomes, and support Scotland’s transition to a circular economy. These are as follows - • Councils will be legally required to comply with a new statutory Code of Practice for household recycling services. • This Code is being co-designed with local authorities and stakeholders to ensure it is practical and effective, but once enacted, compliance will be mandatory. • Councils will gain new enforcement powers, including: o Issuing fixed penalty notices to householders who fail to comply with waste disposal duties. o Enforcing civil penalties for breaches of collection requirements. o Seizing vehicles involved in waste offences such as fly-tipping. • Introducing a new duty care for waste management by householder. The Act modifies the Environmental Protection Act 1990, placing a legal duty on householders to ensure their waste is transferred only to authorised persons. Councils will be responsible for monitoring and enforcing this duty, including issuing penalties for non-compliance. • Councils will be subject to statutory recycling performance targets, with reporting and monitoring obligations. 6.4 HR – not known at this time. Increased staffing resources will be required to implement the new statutory code of practice. However, the go live date for this is not known, and an update will be provided to committee once this information is available. 6.5 Customer Service – none. 6.6 Risk – mitigations for the financial, legal and reputational risks faced by the council are provided elsewhere in the report. 6.7 Climate Change - The uplift and processing of municipal waste continues to be the single most carbon consuming activity equating to approximately half (51.4%) of all Council emissions. The upcoming transition to Energy from Waste processing will address the Council’s largest emissions source. This change is a medium-term transitional step that allows the Council to pivot resources. It is important to use this as a strategic opportunity to double down on efforts to reduce waste at the source and improve recycling, shifting our focus from disposal to driving better behaviours in how we all produce and manage waste.
Page 12
6.8 Fairer Scotland Duty – none. 6.9 Equalities – protected characteristics – none. 6.10 Consumer Duty – none. 6.11 Island Communities – the closure of the landfill sites on Islay and Mull will have an adverse effect on businesses on these islands. The council has applied for a temporary exemption to the landfill ban at these sites to allow time to develop a medium to long term solution. 6.12 Children’s Rights and Wellbeing – none. Kirsty Flanagan Executive Director with responsibility for Development and Infrastructure Policy Lead Councillor John Armour 10 November 2025 For further information contact: Andy Summers, Head of Roads and Infrastructure Andrew.summers@argyll-bute.gov.uk APPENDICES None