Infrastructure Investment Plan 2021-22 to 2025-26 Progress Report for 2023-2024

Annex A: Progress on the Infrastructure Commission for Scotland’s recommendations.

The following information relates to the latest progress of the recommendations made by the Infrastructure Commission for Scotland (ICfS) in its Phase 1 & 2 Key Findings report.^[3]

Phase 1 Recommendations

Leadership

The Infrastructure Investment Plan (IIP) 2021-22 to 2025-26, prioritises the pipeline of investments against three themes, including enabling net zero emissions and environmental sustainability, and driving inclusive economic growth.^[4]

The Scottish Government are using the ICfS recommendations to guide an infrastructure improvement programme across three workstreams; developing a national needs assessment; implement a prioritisation framework; and improving our approach to multi-stakeholder engagement.

The Scottish Government are working with the Scottish Futures Trust (SFT) to deliver the Infrastructure Improvement Programme and this work will support delivery of the next IIP. The Medium Term Financial Strategy (MTFS) published on 23 May 2023 committed to extend the period for the Capital Spending Review and current IIP by one year, taking these to 2026-27.^[5] The next IIP will be implemented from financial year 2027-28

Place

The ICfS called for the development of a place-based assessment of long-term housing supply and demand across Scotland, supported by a coherent strategy for the labour market and business opportunities arising from an inclusive net zero carbon economy. The National Planning Framework 4 (NPF4) was adopted on 13 February 2023, becoming part of the statutory development plan and being directly relevant to planning applications across Scotland.^[6]

The Town and Country Planning (Development Planning) (Scotland) Regulations came into force on 19 May 2023.^[7] Guidance setting out Scottish Ministers expectations for implementing the system of local development was also published, bringing together requirements from the Act and Regulations, and advice in relation to NPF4. NPF4 is accompanied by a Delivery Programme. This was updated in September 2023. It maintains a commitment to monitoring, which for this first year following adoption, has focussed on how national planning policies are being implemented.

The ICfS recommended that an Infrastructure First (IF) approach to the planning system should be introduced by the Scottish Government by 2021. NPF4 includes a dedicated IF policy that recognises the importance of putting infrastructure at the heart of place making.

The Scottish Government, with the support of SFT, have established the Planning, Infrastructure and Place Advisory Group (PIPAG) to support the implementation of NPF4. The group will help drive forward joined-up, place-based delivery of development and infrastructure in Scotland. Further information is available on the Scottish Government website at Planning, Infrastructure and Place Advisory Group | Transforming Planning. The Scottish Government now consider these recommendations to be complete.

Making the most of existing assets

There were recommendations around making the most of our existing assets. The Scottish Government responded to this in the IIP 2021-22 to 2025-26 with the Infrastructure Hierarchy, and this remains a cornerstone of our investment decision making. Our colleagues at SFT have also published a Public Sector Asset Strategy which is available on SFT’s website at Asset Strategy Guidance - August 2022 and this work continues to be embedded across the public sector.

The Scottish Government continues to implement the Scottish Climate Change Adaptation Plan 2 (SCCAP2) programme, with annual progress reporting to the Scottish Parliament. Further information on the programme is available on the Scottish Government website at Climate Ready Scotland: climate change adaptation programme 2019-2024. Alongside delivering SCCAP2, in January 2024, the Scottish Government published a public consultation on a draft Scottish National Adaptation Plan (SNAP) for the 2024-29 period. This is available on the Scottish Government website at Climate change - national adaptation plan 2024 to 2029: consultation. This draft Plan responds to the risks identified in the 2022 UK Climate Change Risk Assessment which can be found on the UK Government website at UK Climate Change Risk Assessment 2022. The final SNAP will be published in Autumn 2024.

Additionally, the Scottish Government is developing a route map to reduce waste and meet waste and recycling targets for 2025. A consultation on the Scottish Government’s waste route map was published in May 2022 at Delivering Scotland's Circular Economy – A route map to 2025 and beyond: consultation. A second consultation on an updated route map was held between 18 January and 15 March and this is available on the Scottish Government website at Circular economy and waste route map to 2030: consultation. The updated draft route map sets out strategic direction and foundations for sustainable resource use and our system-wide, comprehensive vision for Scotland’s circular economy from now to 2030. The consultation feedback is being reviewed and the final route map will be published later in 2024. The direction and actions set out in the Route Map are complemented by the Circular Economy (Scotland) Bill and its provisions which is available on the Scottish Government website at Circular Economy Bill.

• One of the main themes in the feedback from the first Route Map consultation (2022) was a need to prioritise action
• The revised draft Route Map sets out prioritised actions we need to take to deliver sustainable use of our resources and progress a circular economy in Scotland to 2030
• The Scottish Government recognises that it was important to consult again to ensure we have the right priorities before finalising the Route Map
• As part of the second consultation, the Scottish Government have published new supporting evidence, impact assessments and an environmental report
• To meet Scottish Government statutory obligations, the environmental report sets out findings on the likely cumulative environmental implications arising from the measures set out within the Route Map

Heat and Transport

The ICfS recommended that Scottish Government set out proposals to accelerate the development and implementation of incentives, support mechanisms and standards for energy efficient, net zero carbon buildings. This has been achieved in the form of the Heat in Buildings (HiB) Strategy published in 2021, and in subsequent related actions and commitments.^[8]

The requirement for `Whole building' solutions and systematic public engagement, customised to the needs of different groups, to ensure that all property owners engage with proposed changes and are committed to upgrading their property has been addressed via the HiB Strategy and publication of the Heat Transition: Public Engagement Strategic Framework.^[9] The Scottish Government now consider this recommendation completed. A Monitoring and Evaluation Framework is now in place, with the first outputs to be available later this year.^[10]

On transport, ICfS recommended that Scottish Government and Transport Scotland should ensure that it’s new National Transport Strategy and Strategic Transports Projects Review 2 fully reflects an inclusive net zero carbon economy and consider the infrastructure and the use of it as a holistic system. Scotland’s National Transport Strategy (NTS), published in February 2020, fully reflects the need to deliver Scottish Government’s ambitious net zero targets, with the Sustainable Travel Hierarchy and Sustainable Investment Hierarchy at its core.^[11] In December 2023, Scottish Government published the third NTS Delivery Plan^[12] which outlines a range of actions being taken forward in 2023 and 2024, including Scottish Government’s Approach to Climate Change Adaptation & Resilience (ACCAR)^[13], the second Scottish Climate Change Adaptation Programme^[14], the Trunk Roads Adaptation Plan^[15] and the Rail Services Decarbonisation Plan^[16].

The second Strategic Transport Projects Review (STPR2) published in December 2022 outlines the recommendations for future transport recommendations.^[17] Powers relating to Vehicle Excise Duty and Fuel Duty are reserved to UK Government. The Scottish Government has written to previous UK Government on these issues to welcome constructive discussion. Scottish Government tax officials will meet with their counterparts from the other devolved governments to discuss how we might jointly make representation to the new UK Government on areas of UK-wide fiscal reform, including for motoring taxes, that could support the transition to net zero.

Additionally, the second Strategic Transport Projects Review (STPR2) Delivery Plan will take account of the current financial climate and is examining existing schemes across all modes in addition to the STPR2 recommendations. This is a complex piece of work, with consultation ongoing across the Scottish Government, including with Statutory Bodies and Exchequer officials.

Furthermore, to enable a managed transition to an inclusive net zero carbon economy road infrastructure, Scottish Government will publish the 20% car use reduction route map this Autumn. The Scottish Government will continue to press the UK Government for urgent dialogue on its plans for structural reform of motoring taxation, ensuring all areas of the UK are represented – particularly for Scotland’s island and rural communities.

The UK Government’s own Net Zero Review highlighted that revenues from existing motoring taxes will decline sharply this decade, but it has so far failed to set out how it will address this. The UK needs a comprehensive approach to vehicle and road taxation that offers practical solutions to achieving our climate change ambitions.

Finally, ICfS recommended that Scottish Government and Transport Scotland develop a new investment appraisal and decision-making process.^[18] Investment Decision Making (IDM) is being considered as part of the ongoing work on the STPR2 Delivery Plan. The intention is that IDM Guidance Update will follow thereafter.

Regulation

ICfS made recommendations regarding Energy and Telecoms regulation, and for the Scottish and UK Governments to work together to develop an appropriately devolved regulatory and pricing framework that enables energy and telecoms infrastructure investment to be planned and delivered to meet the future needs of Scotland. The Scottish Government continue to work with the UK Government and Ofcom on an underpinning framework in telecoms that is responsive to Scottish needs and to ensure any barriers to telecoms deployment in Scotland are understood and acted upon.

Where powers are available, the Scottish Government have taken action to facilitate improved investment in digital infrastructure - such as through 100% non-domestic rates relief for laid and lit fibre to 2034 (the most extended period of rates relief in the UK) and the planned changes to building standards to mandate gigabit capable connectivity (up to a cost cap) in all new housing developments.

There were recommendations regarding formal regulation around water provision and flood management. The public consultation on the Flood Resilience Strategy for Scotland was undertaken in Spring 2024. It will signal the changes that are required to ensure improved flood resilience in the face of the Climate emergency. It will be structured around the themes of People, Places and Processes, seeking views on the changes we propose to make.

The Scottish Government consulted (from November 2023 to February 2024) on the proposed strategic principles, and considerations in developing policy for the future of the water industry. Responses are being considered as part of the development of policy across water, wastewater and surface water drainage.

These policy areas come together when considering Place and the delivery of blue-green infrastructure to provide multiple benefits. This will drive a requirement for collaboration across organisations and it will be key to involve communities in the process.

Digital and Technology

The ICfS recommended the Scottish Government provide the leadership required to ensure the delivery of a full-fibre network by 2027 to enable the transition to 5G. Reaching 100% (R100) Programme, which is over £600 million investment in digital infrastructure, continues to deliver at pace across Scotland.^[19] In 2022-23 the Scottish Government extended the investment and reach of the programme that will enable delivery to more premises in some of the most rural parts of Scotland. Where powers are available, the Scottish Government have taken action to facilitate improved investment in digital infrastructure - such as through 100% non-domestic rates relief for laid and lit fibre - now extended to 2034 and continuing to offer the most extended period of rates relief in the UK.

Furthermore, ICfS recommended that Scottish Government should ensure Scotland's place in the world and increase its international presence and connectivity resilience. In June 2023, the Scottish Government held an online event, in partnership with Scottish Enterprise (SE) and Scottish Renewables, aimed at raising awareness internationally within the datacentre industry of Scotland’s renewable energy generating capability and the datacentre site selection documents. The Scottish Government subsequently refreshed the datacentre site selection documents which continue to drive interest and demand in sites across Scotland and are a valuable resource that identifies Scotland as an inward investment opportunity.

In recognition of the impact of grid constraints on datacentre inward investment opportunities, Scottish Government have developed strong links with Scottish Development International, the UK Government Office for Investment and the power industry including the National Grid to represent datacentres in the broader pipeline of constrained opportunities.

Following the completion of the updated iterations of the Datacentre Site Selection Reports in May 2023, the Scottish Government promoted these by hosting an online event in partnership with Scottish Renewables. Scottish Government and SE further promoted this by sharing the reports with Scottish Development International (SDI) colleagues, the other enterprise agencies, and local authorities.

Lastly, the ICfS made a recommendation to consider the future data requirements and data potential for all new publicly funded infrastructure and the use of digital services associated with the assets. The Scottish Government have committed to ministers that a business case will be prepared in the coming year, to deliver a strategic approach to data reuse across the public sector. This commitment included piloting of technical solutions across three areas of public service delivery, with one being the Built Environment. Through the technical piloting and the general business case on data reuse, we expect to ensure that infrastructure data is increasingly Findable, Accessible, Interoperable and Reusable (FAIR data principles). Further information on this can be found on the Nature website at The FAIR Guiding Principles for scientific data management and stewardship.

The role of the public

The Scottish Government are working with SFT to develop a public and stakeholder engagement process to improve the way we engage on infrastructure improvement work. This has strong links to the Open Government Action Plan 2021-25, which has fiscal openness and transparency as one of its five core commitments. As part of this, Scottish Government has committed to "build on previous engagement and best practice to develop a multi-stakeholder approach to the next Infrastructure Investment Plan." This work is ongoing and remains on track to deliver for the next IIP.

Phase 2 Recommendations

Prioritisation and decision making

In Phase 2 of recommendation, ICfS recommended that to support infrastructure decision making that will prioritise an inclusive net zero carbon economy, the Scottish Government should ensure implementation of our phase 1 Report recommendations. As outlined above, Scottish Government continue to implement and report updates on these recommendations.

Systems and behaviours

ICfS recommended that Scottish Government should enshrine the use of the Place Principle within planning practice, through guidance, legislation or regulation as appropriate. This recommendation has been actioned through the adoption of NPF4 as part of the statutory development plan. Implementation of NPF4 and of the Place Principle is further supported with the publication of Local Development Planning Guidance in 2023.^[20] In April 2024, the finalised Local living and 20 minute neighbourhood Planning Guidance was published providing further detail, case studies and resources for implementation, with a focus on informing development planning and the development management process, supporting implementation of NPF4 and the application of the Place Principle.^[21]

Additionally, ICfS recommended Scottish Government to build on Phase 1 needs-based recommendations, in the development of NPF4, and should establish a cross-portfolio, and robust evidence-based, land use appraisal and prioritisation approach which vertically aligns national, regional and local needs. NPF4 was adopted on 13 February 2023. The PIPAG is now firmly in place with meetings scheduled quarterly. The outcome of this recommendation is long-term, and challenges and opportunities will now be taken up with PIPAG.

Furthermore, ICfS recommended that the "one public sector" outcome-based approach should be developed for Scotland’s places. This would build on changes within the Planning Scotland Act (2019), establishing a clear duty to co-produce and co-deliver existing and proposed spatial plans and includes the necessary shared accountability measures.^[22] How this effectively compliments and learns from Community Planning Partnerships, Local Area Improvement Plans, Locality Plans and Local Place Plans should be reviewed, to make as efficient and streamlined as possible, while ensuring collaboration becomes a required practice.

Regulations on the process for new-style spatial Local Development Plans (LDPs), came into force in May 2023, and are supported by guidance.^[23] There is a renewed focus on LDPs being deliverable, and local authorities are required to publish a Proposed Delivery Programme alongside the Proposed Plan - providing other stakeholders to feed into the approach for delivery. Delivery Programmes must be updated at least every 2 years providing ongoing opportunities for public sector involvement in the delivery of plans, regulations requiring local place plans to be taken into account in the preparation of local development plans also came into force in May 2023. The Scottish Government are in the early stages of considering the approach to the review of local place plans as required by Section 15B of the Town and Country Planning (Scotland) Act 1997.^[24]

Enabling digital technology

There were recommendations to establish a digital data co-ordination, standards and facilitation role to support the efficient and innovative development and use of data for the infrastructure sector. A number of initiatives have been put in place that the Scottish Government believe to meet these needs, including the establishment of Research Data Scotland (RDS) in late 2021.^[25] RDS will provide a new way of organising data for research and making it discoverable and ensure access to this, whilst maintaining public confidence in appropriate use of that data and making access quicker by providing a clear service for researchers who want to access data.

RDS is also transforming how public sector data in Scotland is curated, accessed and explored, so it can deliver its full potential for policymakers. RDS can harness wider resources than Scottish Government alone and secure the momentum for a wider partnership between public sector and academia, building on and developing further existing data infrastructure, and Scotland’s reputation for the management and use data and trustworthiness in what the Scottish Government do. Alongside RDS's work providing data for research, our Digital Programme will provide guidance for government and public sector organisations on the ethics of data reuse.^[26] The Scottish Government now consider this recommendation to be complete.

Furthermore, ICfS were keen for a centrally held data resource to be developed. The Data Strategy for planning was completed in summer 2023, setting out a roadmap to improve planning data quality, through the development of data standards and new data governance arrangements. Work to implement the data strategy has now been put on hold as a result of the closure of the digital planning programme.

Resources

The ICfS recommended Scottish Government, in partnership with the private sector, third sector and communities, should further develop and harness the essential skills to develop and improve our places. This should include establishing and directly supporting an appropriately experienced and co-ordinated skill resource for the prioritisation, planning and delivery of infrastructure, which is available to all local authority stakeholders, across spatial levels.

The Future Planners report, published July 2022, sets out a series of short, medium and longer term recommendations to increase the number of new entrants into planning authorities and other parts of the planning sector.^[27] The Scottish Government has been working with Head of Planning Scotland (HOPS) and Royal Town Planning Institute Scotland (RTPI) and other partners to progress the recommendations.

In February 2024, the Scottish Government launched a consultation - Investing in Planning - which aims to increase resources available, primarily for planning authorities. The consultation seeks views on a series of proposals, including establishment of a Planning Hub or central pool of staff or specialists that would be accessible to authorities to use as and when required to assist them with their planning functions. The Investing in Planning Consultation is closed and Scottish Government have published responses to the proposals and our analysis of the key issues.^[28]

Furthermore, action taken during 2024 includes funding for 10 x £5,000 RTPI bursaries for students undertaking post graduate planning degrees in Scottish planning schools. In September, the Scottish Government established a Planning Hub, based within the Improvement Service, to provide direct support to authorities, building capacity and providing access to skills. The Hub will focus on hydrogen developments in 2024-25. Scottish Government will also launch a planning apprenticeship scheme to invest in new talent and create a pipeline of skilled planners. The Scottish Government intend to launch the scheme in 2025.

The Scottish Government consulted on the implementation of mandatory training of elected members (Local Councillors) who sit on a planning committee between July and October 2023. An independent analysis of the consultation responses was published in April 2024.^[29] The Scottish Government are currently considering how mandatory training can be implemented, including the content and how the training is delivered, with a view to having it in place by the next Local Government Election in 2027.

Delivering a thriving construction sector

ICfS recommended that the Scottish Government and Construction Scotland Leadership Group should jointly lead, develop, resource and implement a "Construction Accord" between all Scottish public bodies and the whole of the construction sector. The Construction Accord was launched in October 2022. More information can be found on the Construction Leadership Forum (CLF) website.^[30].

The Transformation Action Plan (TAP) was launched in January 2024 by the Minister for Small Business, Innovation, Tourism and Trade.^[31] The plan is overseen by the CLF’s Transformation Board and work is now underway to deliver the agreed actions through the 11 CLF Working Groups: Procurement/ Supply Chain Management, Pipeline, Workforce & Skills, Fair Work, Construction Quality, Digital, MMC/ Offsite, Net Zero, Supply Chain Development, Data and Comms. Progress will be monitored twice a year. The Scottish Government now consider this recommendation to be complete.

The Scottish Government are thankful to the Commission for their work and their recommendations and will continue to implement the recommendations. An update on the progress of the ICfS recommendations will be published annually.