Scottish Crown Estate: strategic management plan

Developing the Strategic Management Plan to align with wider objectives, priorities and policies

20. The Act requires Scottish Ministers to prepare a Plan for the Scottish Crown Estate, setting out the objectives, priorities and policies in relation to the management of the estate and an assessment of how these align with the Scottish Ministers’ other objectives, priorities and policies. The Plan can also include such other information about the Scottish Crown Estate and its management as the Scottish Ministers consider appropriate.

21. A manager of one or more Scottish Crown Estate assets must take account of the Plan when preparing a Corporate or Management Plan^[6] and when undertaking management functions.

23. Crown Estate Scotland is currently the manager of all Scottish Crown Estate assets. The development of the Plan has been co-ordinated with the preparation of Crown Estate Scotland’s Corporate Plan 2020-2023^[7].

24. The Plan and Crown Estate Scotland’s Corporate Plan will be used by Crown Estate Scotland to inform the development of a separate Business Plan for each financial year which will include the following:

• The purpose and principal aims of Crown Estate Scotland;
• Key objectives and associated key performance targets for the period of the Plan, the strategy for achieving those objectives and how these will contribute towards the achievement of the Scottish Government’s primary purpose and alignment with the National Performance Framework; and
• Indicators against which performance can be assessed.

25. In future, any other manager of a Scottish Crown Estate asset will be required to develop an equivalent Management Plan.

Relationships between the Strategic Management Plan, wider SG policies and the Scottish Crown Estate

National Performance Framework
Programme for Government
Other Scottish Government Policies

Strategic Management Plan

Crown Estate Scotland -Corporate Plan
Crown Estate Scotland -Business Plan

Management Plans (3 Year Plans for New Managers)

Alignment of objectives, priorities and policies

26. There is a requirement for the Plan to assess how the objectives, priorities and policies for the Scottish Crown Estate align with the Scottish Ministers’ other objectives, priorities and policies.

27. The objectives, priorities and policies have been developed to enable further progress on reform of the Scottish Crown Estate, while ensuring alignment to Scottish Ministers’ wider objectives, priorities and policies.

28. The objectives, priorities and policies for the Scottish Crown Estate align with the wider programme presented in the NPF and can make a significant contribution to these wider objectives, priorities and policies across a range of activities (see Annex B). There is an array of different linkages between the Plan and other priorities, including our response to the global climate emergency, delivery of the principles in the NPF, the National Marine Pan, implementation of the Energy Strategy and our work on Land Reform and to enhance community empowerment.

Scottish Crown Estate - Sectors and Activities

Management of Scottish Crown Estate Assets

Offshore Renewables
Aquaculture
Ports, Harbours and Moorings
Cables and Pipelines
Islands and Coastal Communities
Sport and Leisure (eg. Salmon fishing rights)
Tourism
Community Empowerment
Land Reform
Community Engagement
Rural Estates
Forestry
Minerals and Mining rights
Agriculture
Built Environment

29. The following sections illustrate how the objectives, priorities and policies align with and contribute significantly to Scottish Ministers’ wider objectives, priorities and policies, recognising that the particular opportunities and benefits will need to be considered on a case-by-case basis and in accordance with the legal framework for the Scottish Crown Estate.

Sustainable Development

30. Sustainable development has been defined in many ways, but the most frequently quoted definition is from Our Common Future, also known as the Brundtland Report^[8]:

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

31. The UN has set a series of Sustainable Development Goals^[9]. These ‘global goals’ and targets are part of an internationally agreed performance framework.

32. The Scottish Government has committed to implement the Sustainable Development Goals and has developed the NPF whose goals share the same aims. The NPF has a focus on tackling inequalities so that no one in Scotland is left behind as we work together to achieve the goals.

33. Scottish Ministers accept that not all of the UN’s 17 Sustainable Development Goals and the goals within the NPF are directly relevant to the Scottish Crown Estate assets due to their diverse range. However, the diverse range of property, rights and interests including rural land, urban property and coastal and marine rights provide an opportunity for the Scottish Crown Estate to make a significant contribution to delivery of the NPF. The assets will be managed in a way that optimises the contribution to these wider goals.

34. Scottish Ministers have reformed the powers and duties relating to the management of the Scottish Crown Estate through the Act, which requires that a manager of a Scottish Crown Estate asset must maintain and seek to enhance:

(a) the value of the assets; and

(b) the income arising from them.

In complying with that duty the manager must:

(a) act in the way best calculated to further the achievement of sustainable development in Scotland; and

(b) seek to manage the assets in a way that is likely to contribute to the promotion or the improvement in Scotland of:

(i) economic development,

(ii) regeneration,

(iii) social wellbeing,

(iv) environmental wellbeing.

35. Sustainability is therefore an overarching principle in the management of the assets within the Act. All forms of sustainability (for example economic development, regeneration, social wellbeing and environmental wellbeing) are of equivalent importance and they are intended to be complementary, as elements of overall sustainability that can sit together or on their own merits. Scottish Ministers acknowledge that one or more may demonstrate greater development potential over the others as part of a wider consideration on a case-by-case basis.

36. Each decision on sustainability will be unique, depending on the type of asset being managed, the location, setting and the specific circumstances for that asset as well as wider factors including the potential use and demand for the asset and the environmental sensitivity of the asset.

37. A number of high-level examples are outlined below to illustrate how the objectives, priorities and policies for the Scottish Crown Estate align with and can contribute to Scottish Ministers’ wider objectives, priorities and policies on economic development, regeneration, social wellbeing and environmental wellbeing.

Sustainable Development for Scottish Crown Estate Assets

Regeneration

Getting the most out of assets that aren't being used to their full potential and drive transformational change of those assets.

Social

Reducing overall inequalities and encouraging activities to lead to healthier wellbeing and more sustainable and inclusive communities.

Environmental

The enhancement of the sustainable use of land, foreshore and seabed resources and contribute towards the improvement, protection, encouragement of local wildlife and address and reduce the impacts of climate change.

Economic

The development of sustainable businesses and travel around communities whilst contribute to the long term development and growth of local economies and the assets.

Scottish Ministers acknowledge that on a case-by-case basis future action may
have primary objectives but also recognise that secondary benefits could also be delivered. Scottish Ministers have indicated (for illustrative purposes only) some examples below of potential primary benefits.

Social Wellbeing:

38. This could include the incorporation of such factors in direct improvements or creation of opportunities forming part of the Scottish Crown Estate. It could include, but is not restricted to, for example:

• The direct improvement or creation of specified local services and infrastructure in the short to long-term (e.g. including services/infrastructure such as social housing, power, access to information, recreation facilities or providing or improving other local amenities and services) which contribute to the wellbeing of communities or individuals linked to living on land that forms part of the Scottish Crown Estate;
• The contribution to the reduction of social disadvantage in the community (e.g. the proposal encourages activities that involve the participation of members of a community thereby creating a stronger, vibrant and thriving community);
• Activities that can help people lead healthier lives through access to recreational opportunities or engaging with their natural environment;
• Reduce inequalities - this refers to tackling poverty or social deprivation and the other associated issues, such as health problems, low quality housing and lack of access to services and employment recreational facilities;
• The direct improvement or retaining of cultural wellbeing and history (including historic sites) of society and individual groups for future generations; or
• Reducing inequalities through diversifying and improvements of participation in projects and community activities.

Environmental Wellbeing:

39. This could include the incorporation of such factors in direct improvements or creation of opportunities forming part of the Scottish Crown Estate. It could include, but is not restricted to, for example:

• Addressing the impact of climate change through improved recycling or reducing rubbish or plastic within the land-based assets or marine assets including promoting management activities which helps address climate change and reduce our carbon footprint;
• The enhancement of the sustainable use of land, foreshore and seabed resources (e.g. contribute to local environmental sustainability, improved land, foreshore and seabed management, improvements to the land and marine environment etc);
• The enhancement or development of alternative green renewable energy, which reduces dependency on fossil fuels;
• The improvement or provision of new amenities for locals and visitors in terms of access, interpretation and education;
• The enhancement of natural resources, wildlife or habitats (e.g. through developing woodlands, implementing or contributing to a Habitat Action Plan, Biodiversity Action Plan, Marine Plan etc);
• Regeneration and making the area a better place to live and work, for example providing new housing, bringing empty buildings or unused land back into use, increasing access to services and social and leisure facilities, improving the marine environment etc;
• Activities that contribute towards the protection and encouragement of local wildlife or by rewilding and conservation aimed at restoring or protecting natural areas of land and marine habitat(s);
• Management of rights relating to rivers, farms, forests, coast and seabed can contribute to future action needed to halt the loss of biodiversity in Scotland and restore healthy ecosystems; enhancing our natural capital; reducing greenhouse gas emissions and air pollution, waste and diffuse pollution of water courses;
• Expanding, protecting and enhancing forestry and woodlands can deliver greater economic, social and environmental benefits; or
• Developing proposal which can support tenant farmers to adapt their practices to cope with climate change.

Economic Development:

40. This could include the incorporation of such factors in direct improvements or creation of opportunities forming part of the Scottish Crown Estate. It could include, but is not restricted to, for example:

• Exploring the potential to incorporate such factors in the criteria for leasing rounds, funding decisions and other activities or favourable terms for leases if specific success factors for wider benefit are achieved;
• The promotion or management of the assets that leads to the creation of new jobs or to protecting existing jobs (e.g. employed directly/indirectly, training opportunities, bringing more custom to existing businesses and/or supporting the development of new businesses);
• Developments to enhance existing local transportation infrastructure to assist in the long-term sustainable development of communities, and develop alternative transport solutions to enable long-term sustainable growth and movement within local communities;
• The diversification of the economic base of the area by the introduction of new activities (e.g. development of new sectors such as renewables; adding value to local food or wood products, or new marine based activities within the blue economy);
• The generation of new income into a community in locations that are linked to or form part of the Scottish Crown Estate, which would stem the loss of income from the community;
• Development which will contribute to improvements to infrastructure in the area or design or creation of spaces to engage with the natural world;
  or
• Proposals that will contribute towards an increase of the revenue generated by the asset or the overall growth of the capital of the Scottish Crown Estate, which will increase contributions made into the SCF or bring additional capital that can be used to contribute to the improvement of economic, social, or environmental wellbeing.

Regeneration:

41. This could include the incorporation of such factors in direct improvements or creation of opportunities forming part of the Scottish Crown Estate. It could include, but is not restricted to, for example:

• Exploring the potential to incorporate such factors in the criteria for leasing rounds, funding decisions and other activities or favourable terms for leases if specific success factors for wider benefit are achieved;
• Appropriate opportunities for regenerating communities, such as bringing underused land or buildings back into a productive use and providing or enhancing services for the benefit of the wider or local community or the environment;
• Supporting local organisations to take on ownership or management of assets, such as buildings or land, foreshore and seabed to benefit the whole community and environment; or
• Helping people to co-ordinate action and respond to challenges in areas through projects linked to or forming part of the Scottish Crown Estate, which will deliver transformational change with strong regeneration outcomes.

Delivering benefit

42. When considering opportunities to charge less than market value for a lease, sale or other agreement in order to further the achievement of sustainable development or contribute to the promotion or the improvement of economic development, regeneration, social wellbeing and environmental wellbeing, a manager must:

• Ensure the benefits will be delivered for Scotland, either at a national level, for a sector of the economy or at the local community level in line with the relevant state aid rules;
• Be able to demonstrate why they have decided this course of action and keep a record of the evidence used to support decisions, including the predicted type and scale of wider benefits; and
• Have regard to the likely effect on the overall value of the Scottish Crown Estate of making the relevant transaction for less than market value.

43. For leases granted a manager should also monitor and evaluate regularly the delivery of the expected wider benefits that the assets are delivering as a result of agreeing to a less than market value transaction.

44. The powers contained in Section 7 and 11 of the Act (see Annex D)
must not be used to the benefit of an individual person, family, or company.