ARGYLL and Bute Council is now “very unlikely” to be given a derogation on the Scottish Government’s landfill ban, a report has said – and it could cost the authority £1.5 million.

The council is the only one in Scotland with a PPP waste contract, which is due to expire nine months after the landfill ban is implemented from the start of 2026.

From then, the contract will not be compliant with the Scottish Government’s regulations.

The contract covers three of the four administrative areas of Argyll and Bute – Helensburgh and Lomond is covered by a separate third party arrangement.

But Scottish Government chiefs have not responded to a request to continue the existing deal for its final nine months, and no form of grant payment has yet been discussed either.

The details are given in a report which will go before the council’s environment, development and infrastructure (EDI) committee on Thursday, June 20.

Executive director Kirsty Flanagan said: “In December 2022, the committee agreed to pursue a derogation from the Scottish Government, from the implementation date of the biodegradable municipal waste ban of January 1, 2026 to the end of the council’s waste PPP contract in September 2026.

“As advised at the March EDI committee, the Scottish Government were given a 'drop dead' date of April 5 to grant the derogation to landfill until the PPP contracts subsists in September 2026.

“To date the Scottish Government have not committed to the derogation, and given the parliamentary process, that would be required to achieve a derogation through changes to regulation it is very unlikely that a derogation can now be achieved.

“Therefore, the PPP contract will require a variation or agreement in principle to cease the production of CLO (compost like output) in the mechanical biological treatment (MBT) plants and to convert the plants into waste transfer stations in Oban, Lochgilphead and Dunoon.

“General waste will then be taken to third party off-takers for Energy from Waste (EfW) feed stock rather than being processed with residual being landfilled.

"This approach will also futureproof the council’s waste service in line with the BMW (biodegradable municipal waste) ban.

“The council is seeking funding for the additional costs (circa £1.5m) which would be incurred by the council in respect of varying the PPP contract from the Scottish Government.

“As advised in the March 2024 waste update, the executive director and head of service met with officials from the Scottish Government on February 9.

“Scottish Government officials stated that subject to due diligence it would be more likely that some form of associated grant payment could be forthcoming rather than a derogation.

"At the stage of writing this report, the Scottish Government has not confirmed this arrangement in writing.”

Ms Flanagan concluded: “The council is now committed to the second option of converting existing site infrastructure into waste transfer stations.

“Officers will engage with Renewi on instruction from the committee to ensure the conversion of the MBT plants to waste transfer stations in accordance with BMW ban compliance."