The Circular Economy (Scotland) Act 2024, which passed in August, introduced new waste-reduction targets and reporting requirements for businesses across Scotland. Combined with UK-wide changes to recycling rules and rising landfill tax, the shift has forced many firms in Edinburgh and the Lothians to overhaul how they handle waste.
The Circular Economy (Scotland) Act 2024, passed unanimously by the Scottish Parliament, introduces statutory waste reduction targets and gives the Scottish Government powers to bring in further regulation. Scotland is now targeting a 70% recycling rate and sharp cuts to landfill waste under its Zero Waste Plan.
From 31 March 2025, all workplaces with 10 or more employees have been required to separate recyclables, food waste and general waste before collection under the UK-wide Simpler Recycling rules. Landfill tax has continued to rise, reaching £126.15 per tonne in 2025/26 and going up to £130.75 per tonne from 1 April 2026. SEPA has stepped up enforcement activity, with businesses facing fines if they fall short of the new requirements.
Kane Enviro, a Scottish waste management broker based in Cumbernauld with over 35 years in the sector, works with businesses across ports, manufacturing, construction, government and hospitality. The firm has seen a sharp rise in enquiries from Scottish businesses trying to get compliant ahead of the deadlines.
Many Scottish businesses are still using waste contracts that were set up before the 2025 changes. SMEs, particularly in hospitality and retail, do not have the staff to handle the reporting and documentation now required. Businesses that have not moved to segregated waste are also paying more, as mixed-waste disposal costs have risen sharply alongside landfill tax.
Banks and insurers are now asking businesses detailed questions about their environmental compliance as part of lending and procurement processes. Edinburgh’s hospitality sector has felt this particularly, with festival visitors, conference organisers and corporate clients asking for proof of environmental standards before booking venues.
Businesses are moving to single-broker contracts that cover all their waste streams, giving them better visibility and simpler reporting. Digital reporting tools are replacing paper-based waste transfer notes. Some businesses are bringing waste performance data into board reports and tender submissions.
Scottish waste brokers have picked up market share because they understand both the Scottish regulatory requirements and the UK-wide rules.
Hotels and restaurants across Edinburgh have been reshaping their back-of-house operations to meet the food waste rules. With over 5 million visitors a year and peak demand during the Festival, getting waste segregation wrong is not an option. Commercial property landlords in the city are also under pressure to show sustainability credentials to tenants and lenders.
Construction firms working on major projects in the city, including the tram extensions and developments in Granton and Leith, have had to bring in detailed site waste plans to meet planning requirements. Manufacturing and logistics businesses across the Lothians are dealing with tighter rules on hazardous waste and stricter documentation.
Edinburgh’s universities have led the way on public sector waste reduction, and those standards are now being passed on to the commercial suppliers and contractors they work with.
Allan Kane, Managing Director of Kane Enviro, said the firm has seen a big increase in enquiries from Scottish businesses caught out by the changes.
“We have had a sharp rise in calls from businesses that did not realise the Simpler Recycling deadline had passed, or the scale of the compliance reporting now expected under the Circular Economy Act,” he said.
“Customers are not asking about price first anymore. They are asking whether they have the right documentation, whether their waste streams are compliant, and whether they can pull together audit-ready data when someone asks for it. Compliance has become the main driver. Cost is secondary now.”
He said Scottish businesses were benefiting from working with operators who understood both the Scottish and UK-wide rules.
“Scotland is moving faster than the rest of the UK on circular economy policy. Businesses do better when they work with partners who understand both layers of regulation.”
Businesses that are ahead of the curve have carried out full waste audits, mapping every stream against the current rules. They have moved to single-broker contracts that give them visibility across all waste types. Paper-based waste transfer notes are being replaced with digital reporting tools. Staff in hospitality and facilities teams are being trained on the segregation requirements.
Some are already building waste performance data into board reports, tender submissions and finance applications. The furthest ahead are planning two to three years out for the next round of changes.
Scotland’s waste regulations are moving faster than much of the UK. Businesses that have got ahead of the requirements early are in a better position. Those still treating waste as a back-office task will keep paying more in costs, compliance risk and reputation.
How a Scottish business handles its waste in 2026 says a lot about how seriously it takes operational compliance.
