pepper always seems to work for my yellow lab.  he's not a digger, but when he's inside he likes sneaking up on the counters to get nibblets of stuff on our counter or plates.  at night we put ceyenne pepper on a plate, woke up the next morning and he had licked it...once.  then its fine for a while, then we will have to do it again if we notice he is jumping on the counters.  can't ever catch him in the act.  but the pepper thing does wonders.  i would try that for sure if he's digging. just be consistant to break habits.  if you find a new hole put the pepper in it.  eventually he will stop.