Rural Businesses 'Disillusioned' As Scottish Budget Leaves Them Out In The Cold

Press Release

Scottish Land & Estates (SLE), the rural business organisation, has shared its disappointment at the Scottish Budget, passed today in Holyrood, saying that rural voices have been ignored

Rural affairs is the only government department facing a real terms cut, despite the major contribution of rural businesses to the Scottish exchequer and job creation.

Cameron Gillies, Policy & Public Affairs Manager for Scottish Land & Estates, said: “Rural Scotland is at the forefront of the nation’s food and energy security: ensuring there is food on our plates; clean, green energy for homes and businesses; and leading the way in carbon capture through woodland creation and peatland restoration. By any measure, the rural economy punches well above its weight.

“However, the cut delivered to the rural budget sends a worrying message to rural businesses, as funding for agriculture, woodland creation and capital projects remains below 2022 levels despite a substantial uplift in funding available to the Scottish Government from Westminster. There is a growing sense of disillusionment, as rural businesses face blow after blow from both the UK and Scottish governments in consecutive budgets. 

“Despite the warm words from the government about fighting back against the Family Farm Tax, it is clear that rural Scotland remains low on Scottish Government’s priorities. If it is serious about tackling climate change, restoring nature, delivering food security and stemming the tide of rural depopulation, this has to change.

“The Finance Secretary is absolutely right to deliver increased funding for building new homes and supporting renewable energy projects. But without the right support and a robust assessment of the impact of spending decisions, rural Scotland will continue to miss out on the benefits of this investment, and communities will continue to be let down by the unintended consequences of government policies, which hit rural areas specifically.”

Mr Gillies concluded: “Our rural sector is at the heart of Scotland’s net zero ambitions, as well as its economic targets. Increased funding for renewables and peatland restoration is welcome, but it will do little to bring the whole of the rural sector on side given the backdrop of the overall message this Budget is sending. We cannot afford to jeopardise the progress the rural sector is making by continuing to place rural affairs at the bottom of the pile when it comes to public funding.”

A report by economic consultancy BiGGAR Economics in 2023 found that rural estates in Scotland generate an estimated £2.4 billion GVA/year for the Scottish economy and support 57,300 jobs – around 1 in 10 rural jobs. 

In addition they provide homes for 13,000 families and account for 58% of Scotland’s renewable energy generating capacity.