Agriculture and Rural Communities (Scotland) Bill - Fairer Scotland Duty Assessment

Stage 3 – Assessment and improvement

The obvious benefit for a Bill covering longer term proposals would be the potential opportunity to address issues of inequalities and socio-economic disadvantage at an earlier stage.

However, the ongoing uncertainty surrounding the UK exit from the EU means that the future environment in which long term rural policy will need to operate is still relatively unknown, even in broad terms. Until there is greater clarity around issues which could constrain or affect future Scottish rural policy, such as the UK Government plans for future funding, and the future trading relationship with the EU (and beyond), etc., any development of long term future policy would either need to be very general, or would need to be heavily caveated, either of which would negate the advantage of trying to address issues of inequality more quickly.

In addition, while there is general agreement between stakeholders, industry and government that change to the current system of support is inevitable as a result of leaving the EU, the pace of this change must be manageable for all involved to ensure a fair and effective transition to future support schemes. Further, there must also be sufficient consultation and engagement with stakeholders including those with lived experience of poverty in order to establish a direction of travel for future rural policy that works for all.

As noted, the approach for climate and nature are not designed to address any inequality, they are designed to help the agriculture sector reduce its emissions and become more sustainable while also taking into account land use changes and that any impact because of these policies to reduce inequality are indirect.

This approach seeks to ensure farming delivers a fair transition, so will include knowledge and skill support to the sector to upskill and financial support.

• how could the programme/policy/decision be adjusted to address inequalities associated with particular groups? Communities of interest or of place who are more at risk of inequalities of the outcome?

The evidence of the impact of the current CAP in terms of inequalities and socio-economic disadvantage is not particularly extensive, especially in relation to particular groups. At this stage, given the enabling nature of the powers in the Bill, it would not be appropriate to adjust it in order to make specific policy changes to address those inequalities that have been evidenced, and there is the potential during the secondary legislation stage introduced in terms of the bill to engage further with stakeholders regarding how current inequalities might be reduced. The fact that due consideration must be given to the Fairer Scotland Duty during this implementation phase will, at a minimum, guard against these current inequalities getting worse.

Further assessment

The analysis of the responses to consultation on proposals for a new Agriculture and Rural Communities (Scotland) Bill noted that the main areas identified in relation to socioeconomic advantage were:

• impacts of potential increased costs for food resulting from proposals for those struggling with the cost of living,
• impact on farmers who are struggling with potential additional costs associated with proposals in this consultation,
• certain low-paid workers may benefit from the proposals set out in this consultation document,
• more analysis of these impacts is needed.

The broadly framed enabling powers set out in the Bill are not in and of themselves anticipated to have an impact. Any effect would be indirect, arising from the positive advantages to the broader community resulting from the support provided to businesses, contributing to economic stability, growth, and employment opportunities. The proposals would not adversely affect communities, including those groups or regions facing socioeconomic challenges.

There is no expected direct impact, but under the payments framework, farmers, crofters, and land managers will be obligated to take measures to restore nature and decrease emissions. The expenses associated with these requirements will be taken into account during the scheme design and in secondary legislation.

As the proposed powers within the Bill are to enable continuity of the existing Forestry Grant Scheme, so far as possible, it is not perceived to have a likely impact on the groups or areas experiencing socio-economic impact. Should significant changes to the existing grant scheme take place in future, appropriate impact assessments will be carried out to assess the potential impacts at that stage.