Scottish Land & Estates says Budget lacks measures to boost rural Scotland’s economy

Press Release

Scotland’s rural businesses have been provided with little confidence by today’s Scottish Budget, despite being asked to invest, adapt and deliver for communities and the economy.

Scottish Land & Estates, the rural business organisation, said many of the announcements in Finance Secretary Shona Robison’s Budget were a ‘sticking plaster’ for businesses.

Stephen Young, Director of Policy at Scottish Land & Estates, said:

“There appears to be little for Scotland’s rural businesses to get excited about in this Budget, with the rural affairs portfolio once again facing a real-terms cut.

“The Budget does contain some welcome measures - but it falls short of providing the long-term certainty and confidence that Scotland’s rural businesses need to invest, grow and continue delivering for the wider economy and environment.

“While the Scottish Government has taken some steps in relation to non-domestic rates, these measures amount to little more than a sticking plaster on a system that is widely acknowledged as not working as it should.

“The Small Business Transitional Relief may offer some short-term reassurance, but it still leaves many businesses facing substantial increases in rates bills over the coming years, with others at risk of losing total relief from the Small Business Bonus Scheme altogether. This will put huge pressure on the viability of these businesses and the jobs they maintain. That level of uncertainty is likely to discourage investment in the short to medium term and is an issue that will require far more fundamental attention from whichever government takes office after May’s election.

“The rural affairs budget has seen a reduction, although it is positive that Pillar 1 agricultural payments will remain broadly static. The announcement of £26 million for an Agricultural Modernisation Fund raises important questions about how this funding will be deployed. While this largely represents the return of funding previously removed from the portfolio, it is positive that the sector will have access to this support. However, meaningful engagement with industry stakeholders will be essential to ensure it is targeted effectively and delivers tangible outcomes on the ground.

“We welcome the increase in funding for woodland grants, which will support the delivery of the Scottish Government’s ambitious forestry targets, alongside increased investment in peatland restoration as progress towards net zero continues. It is also encouraging to see a significant uplift in the Nature Restoration Fund, with £26 million allocated – an area where we have been particularly vocal about the need for sustained action to tackle biodiversity loss.”