Scottish Budget 2020-2021

Chapter 12: Rural Economy

Portfolio Responsibilities

Rural Economy is a diverse portfolio covering a range of responsibilities which contribute to the economic wellbeing of rural Scotland by working with the public, private and third sectors and our local communities. The portfolio includes farming and food production, animal health and welfare, plant health, food and drink, fisheries, crofting, aquaculture, forestry and rural enterprise and economic development. The portfolio is also significantly impacted by the UK leaving the EU and minimising and addressing those impacts on rural, coastal and island communities will be a key focus.

The portfolio supports a number of bodies including:

• Scottish Forestry and Forestry and Land Scotland, the two new national agencies established through the Forestry and Land Management (Scotland) Act 2018. Scottish Forestry is responsible for the forestry policy, regulatory and support functions of the Scottish Government. Forestry and Land Scotland (FLS) has responsibility for managing Scotland's national forests and land for multiple outcomes.
• The Crofting Commission whose principal functions are regulating and re-organising crofting, promoting the interests of crofting and keeping under review matters relating to crofting. It can advise Scottish Ministers on matters relating to crofting and collaborate with other bodies for the economic development and social improvement of the crofting counties.
• Highlands and Islands Enterprise and South of Scotland Enterprise which are key delivery partners of Scotland's Economic Strategy as well as Scottish Government ambitions to create a low carbon rural economy and deliver inclusive growth and fair work.
• Quality Meat Scotland, the public body responsible for helping the Scottish red meat industry to improve its efficiency and profitability, and maximise its contribution to Scotland's economy. The body's main source of funding is through a statutory levy from farmers and processing companies in Scotland.

Portfolio Priorities

The Rural Economy portfolio contributes to National Outcomes namely economy; communities; education; fair work and business; environment; health, culture; and international. The priority is to ensure a sustainable, inclusive, fair and prosperous rural Scotland. We work to ensure that our approach contributes to inclusive economic growth for rural, coastal and island communities. Work is being structured around two programmes:

• Strengthening our rural, island and coastal communities.
• Optimising the value and sustainability of our land and marine assets.

We will strengthen our rural, island and coastal communities by supporting inclusive and sustainable economic growth, helping to create a low carbon rural economy and encouraging people to stay in and move to rural Scotland by:

• taking area-based approaches in our islands and rural communities, reaching across public services and being rooted in community action;
• supporting businesses through digital connectivity and enablement and exploiting digital capabilities to increase efficiency and productivity;
• using our rural footprint to provide quality, expert advice and support, unlocking and accelerating innovation and growth; and
• supporting investment, inclusive growth and fair work through our rural enterprise bodies.

We will optimise the value and sustainability of our land and marine assets by:

• supporting inclusive and sustainable economic growth in key sectors through Ambition 2030 (for food and drink industry); Aquaculture Strategy; Scotland's Forestry Strategy; Framework for Future Fisheries Management; Rural Skills Action Plan; and the report of the Women in Agriculture Taskforce;
• supporting Scotland's farmers and crofters by continuing to deliver Common Agricultural Policy and supporting land managers, farmers, crofters, foresters and rural businesses through the Scottish Rural Development Programme (SRDP);
• creating a new Agricultural Transformation Programme focused on sustainability, simplicity, profitability, innovation, inclusion and productivity;
• supporting the Farming and Food Production Future Policy Group whose recommendations in the course of 2020 will inform the development of future farming and food production policy;
• reducing Scotland's vulnerability to external events, e.g. climate change, market conditions by re-imagining how we use our land and sea, through farming, crofting, forestry, fisheries and aquaculture to deliver high quality, locally available food and drink, timber and a range of public goods;
• recognising the social and environmental value our land provides to recreation biodiversity, and accelerating our response to climate change;
• optimising our marine assets that yield some of Europe's largest fisheries and aquaculture sectors; and
• delivering world-class science and evidence to protect Scotland from animal and plant diseases.

EU Support and Related Services priorities

The EU Support and Related Services budget continues to support primary production in the agricultural and wider rural sector under direct support measures with UK funding received in 2020-21 as a replacement for former EU support under the European Agricultural Guarantee Fund (EAGF). The Scottish Rural Development Programme (SRDP) provides for National and EU funding (European Agriculture Fund for Rural Development) to support measures which deliver economic, environmental and community benefit for rural, island and coastal communities.

We will support our farmers, crofters, foresters and other land managers, along with wider rural businesses and communities to enhance the rural economy and its contribution to protecting and improving the natural environment and helping address the impact of climate change. This will contribute to the economy, communities, education, fair work and business and environment National Outcomes.

In 2020-21 we will:

• provide financial security and certainty to Scotland's farmers and crofters by delivering the Common Agricultural Policy (CAP) efficiently and effectively;
• continue, within CAP, to provide Direct Payments to active farmers and crofters;
• deliver the CAP Pillar 2, SRDP scheme, including continued support for agri-environment, business advice, innovation and knowledge transfer, crofting and the food and drink sector support under the existing EU Multi-financial framework period;
• maintain payments at the maximum level permitted by EU rules for the Less Favoured Area Support Scheme to provide support to the most fragile farm businesses;
• deliver the second tranche of historic CAP convergence funding to active farmers and crofters, particularly those farming in our marginal and remote areas;
• continue to develop plans to simplify current CAP schemes to transition to a new approach to rural support post-EU exit under the Agriculture (Retained EU Law and Data) (Scotland) Bill; and
• support farmers to move through the twofold transition of leaving the EU and making progress towards the National Net-Zero targets and establish a budget for the agricultural transformation programme and progress key priorities to reduce carbon emissions from farming and food production and enhance biodiversity and environmental benefit from our natural assets.

Rural Services priorities

The Rural Services budget will support food and drink, farming, crofting and rural development projects which contributes to economy, communities, education, fair work and business, environment, and culture National Outcomes.

In 2020-21 we will:

• monitor the presence of animal disease, prevent, control or eradicate any outbreaks and improve the welfare of kept animals including protecting the health of animals and humans by funding delivery partners to deliver official controls;
• monitor the presence of plant disease, to prevent, control or eradicate any outbreaks, in collaboration with delivery partners and seeking advice and support from the Plant Health Centre;
• continue to take action to secure the future of crofting, by publishing a national development plan for crofting, providing grants to sustain and improve croft businesses, and providing more croft house grants;
• continue to support the food and drink sector to achieve its ambition of doubling turnover to £30 billion by 2030 by providing support to allow new businesses to be established and for existing businesses to grow and supporting the growth of new and existing markets;
• develop an action plan to support repopulation of our rural and island communities and work with partners to test approaches using small-scale pilots in rural Scotland;
• provide advice, including training, to farmers and crofters via initiatives such as Farming for a Better Climate, the Young Farmer Climate Change Champions and Lantra which help to ensure the future sustainability of Scottish agriculture; and
• implement actions recommended by the Women in Agriculture Taskforce including establishing a Leadership Development Programme, developing a Charter for Equality and improving training across the country for women involved in farming and crofting.

Fisheries and Aquaculture priorities

We will continue to support activity that builds growth across Scotland's marine and coastal communities, supporting employment, research and innovation and securing investment, by delivering sustainable economic growth in the sea fisheries, inshore fisheries and aquaculture sectors, and championing high environmental standards.

In 2020-21 we will:

• maximise the benefits of the European Maritime and Fisheries Fund (EMFF) to support key projects across the marine sector, creating and safeguarding jobs in remote rural areas and supporting community-led local development;
• continue to develop the high quality fisheries processing sector to deliver jobs and economic prosperity through the EMFF;
• sustain existing markets and develop new premium markets for quality Scottish seafood products;
• continue to deliver on the strategic farmed fish health framework to support the aquaculture sector's 2030 sustainable growth ambitions and work more generally to aid the sustainable growth of the sector;
• identify new marine priorities to support post EMFF projects;
• continue to identify where emergency support to fisheries harbours can deliver long-term benefits to the wider fishing communities around Scotland and provide key funding to ensure their continued operation;
• continue to support the inshore and offshore sea fisheries sectors and to protect Scottish interests in the negotiation of fishing opportunities; and
• publish our Framework to deliver a first-class Scottish fisheries management regime for the future.

Scottish Forestry priorities

We will work in collaboration with people, communities and businesses to implement the priorities identified in, 'Scotland's Forestry Strategy 2019-2029', to increase the contribution of forests and woodlands to Scotland's sustainable and inclusive economic growth.

In 2020-21 we will:

• increase our annual planting target to 12,000 hectares in response to the global climate emergency;
• develop a new national carbon investment programme to attract additional and further external sources of investment in our natural assets which contribute to carbon capture and reduced emissions;
• support the sustainable management of forests and woodlands ensuring Scotland's home-grown timber industry makes more of Scotland's increasing productive woodland resource;
• work with sectoral and local authority partners to invest in transport infrastructure of strategic importance to ensure timber can be accessed and that any negative impacts on communities and the environment are reduced; and
• mitigate the increasing threats to the health of Scotland's trees from pests, disease and climate change through the continued support of research, monitoring and direct intervention.

Forestry and Land Scotland priorities

Scotland's national forests and land contributes over £1 million per day to the Scottish economy in terms of Gross Value Added (GVA) and supports more than 10,255 full-time equivalent jobs. Our programme of work includes ambitious plans to maximise the contribution of Scotland's national forests and land to Scotland's economy, our climate change ambitions and to wider social, health and environmental benefits.

In 2020-21 we will:

develop a new approach to woodland investment with a view to acquiring more land to expand Scotland's forests by planting more continuous conifer cover and native woodlands for the benefit of future generations and to optimise carbon sequestration;

• continue to encourage local communities to consider opportunities to own, lease or use land through our Community Asset Transfer Scheme;
• work in partnership to restore vacant and derelict land for woodland planting and wider beneficial use; and
• develop and implement a Visitor Services Strategy for Scotland's national forests and land.

Rural Economy Enterprise priorities

The Highlands and Islands Enterprise (HIE) budget works to accelerate business growth, strengthen communities, support growth sectors and develop Scotland's Highlands and Islands as a good place to do business, to stay in, to invest in, and to make a life which supports the communities and economy National Outcome.

In 2020-21 South of Scotland Enterprise (SoSE) will be established. It will drive sustainable and inclusive economic growth across the south of Scotland, harness the potential of its people and resources and sustain and grow its communities. With its remit of furthering the economic and social development of the south of Scotland and improving the amenity and environment of the area, it will make a real difference to the quality of life of people in the south of Scotland.

HIE and SoSE will help inform and deliver the collaborative actions agreed by the Enterprise and Skills Strategic Board and respond to its emerging themes and priorities. HIE and SoSE will be key delivery partners of Scotland's Economic Strategy as well as Scottish Government ambitions to create a low carbon rural economy and deliver inclusive growth and fair work.

Spending Plans

Table 12.01: Spending Plans (Level 2)

Level 2	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
EU Support and Related*	178.4	176.8	597.5
Rural Services	32.4	35.1	34.6
Fisheries and Aquaculture	5.9	5.9	5.9
Scottish Forestry	44.0	43.2	47.5
Forestry and Land Scotland	19.7	15.7	17.2
Rural Economy Enterprise	81.7	74.4	86.3
Total Rural Economy	362.1	351.1	789.0
of which:
Fiscal Resource	232.0	241.4	795.0
of which Operating Costs**	-	89.0	95.4
Non-cash	47.7	37.7	44.8
Capital	77.4	67.0	109.5
Financial Transactions***	5.0	5.0	(160.3)
UK Funded AME	-	-	-

* Following the UK's exit from the EU, Pillar 1 direct payments are now funded by the UK Government in 2020-21 as a replacement for former EU funds under the European Agricultural Guarantee Fund (EAGF). In 2018-19 and 2019-20 this expenditure budget was fully offset by EU Income.
** Scottish Government operating costs have been presented in this way within portfolio budgets since 2019-20.
*** In 2020-21, the Financial Transactions total represents the net portfolio position after subtracting forecast Financial Transactions income. The gross amount of Financial Transactions for each portfolio is listed in the Infrastructure Investment Chapter.

Presentational Adjustments for Scottish Parliament Approval

Level 2	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Crofting Commission (NDPB Non-cash)	(0.1)	(0.1)	(0.1)
Highland and Islands Enterprise (NDPB Non-cash)	(15.0)	(5.0)	(5.1)
South of Scotland Enterprise (NDPB Non-cash)	-	-	(2.5)
Forestry Commission - shown separately	(63.7)	-	-
Animal Licence Fees (Other)	0.1	0.1	0.1
Total Rural Economy	283.4	346.0	781.4
Total Limit on Income (accruing resources)			800.0

What the EU Support and Related Services budget does

The EU Support and Related Services budget supports and protects primary productivity in the agricultural and wider rural sector through direct support measures with UK funding received in 2020-21 as a replacement for former EU support under the European Agricultural Guarantee Fund (EAGF). The SRDP provides for National and EU funding (European Agriculture Fund for Rural Development) to support measures that deliver economic, environmental and community benefit for rural Scotland. The delivery is underpinned by the provision of regulatory inspection functions, scientific and technical advice, monitoring and evaluation as well as new improved business processes and its associated digital functionality.

Table 12.02: EU Support and Related Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Pillar 1 - Basic payments*	262.0	262.0	282.0
Pillar 1 - Greening payments*	131.5	131.5	142.0
Pillar 1 - payments*	44.5	44.5	48.0
Convergence Funding	-	-	95.7
Agricultural Transformation Fund	-	-	40.0
Broadband	7.0	-	-
Business Development**	27.8	24.1	(172.3)
Less Favoured Area Support Scheme	65.5	52.4	30.2
Agri Environmental Measures	46.4	43.0	42.7
Forestry	1.0	0.9	0.4
Leader	22.9	20.4	22.2
Technical Assistance	0.6	1.0	0.6
Crofting Assistance	(0.2)	0.8	0.8
CAP Compliance	31.0	-	-
ARE Operations (Including Non-cash)	82.0	129.9	139.5
EU Income*	(543.6)	(533.7)	(74.3)
Total EU Support & Related	178.4	176.8	597.5
of which:
Fiscal Resource	102.7	113.2	682.7
Non-cash	32.5	32.5	37.0
Capital	38.2	27.1	48.1
Financial Transactions**	5.0	4.0	(170.3)
UK Funded AME	-	-	-

* Following the UK's exit from the EU, Pillar 1 direct payments are now funded by the UK Government in 2020-21 as a replacement for former EU funds under the European Agricultural Guarantee Fund (EAGF). In 2018-19 and 2019-20 this expenditure budget was fully offset by EU Income.
** In 2020-21, budget includes a technical adjustment of -£190.3 million which represents planned loan repayments across the portfolio.

What the Rural Services budget does

The Rural Services budget directly supports the sustainable and inclusive growth of the rural economy funding measures that deliver economic, environmental and community benefit for rural Scotland. It provides direct support for: the monitoring, control and prevention of animal and plant diseases; our food and drink sector and crofters; and the development of rural economic projects.

Table 12.03: Rural Services Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Crofting Commission	2.9	2.8	2.8
Rural Cohesion	0.6	0.6	0.6
Agricultural and Horticultural Advice and Support	4.5	2.2	2.5
Veterinary Surveillance	4.2	5.2	4.9
Animal Health	15.2	17.8	17.2
Food Industry Support	5.0	6.5	6.6
Total Rural Services	32.4	35.1	34.6
of which:
Fiscal Resource	32.3	35.0	34.5
Non-cash	0.1	0.1	0.1
Capital	-	-	-
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Fisheries and Aquaculture budget does

The Fisheries and Aquaculture budget supports the sustainable use of the marine environment by providing the domestic funding contribution towards the EMFF. The budget also provides funding towards post EMFF projects and harbour repairs caused by storm damage.

Table 12.04: Fisheries Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
EU Fisheries Grants	14.1	14.1	14.1
Fisheries Harbour Grants	0.4	1.0	1.0
Marine EU Income	(8.6)	(9.2)	(9.2)
Fisheries	5.9	5.9	5.9
of which:
Fiscal Resource	1.5	1.5	1.5
Non-cash	-	-	-
Capital	4.4	4.4	4.4
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Scottish Forestry budget does

The Scottish Forestry budget enables delivery of the Scottish Government's forestry functions including forestry policy, the promotion of sustainable forest management, the delivery of the Scottish Government's forestry targets and forestry regulation. It helps support and develop the contribution of forestry to wider Scottish Government outcomes including in climate and the wider environment, economy, and health and wellbeing. Forestry grants support the private forestry sector's contribution to the expansion and sustainable management of Scotland's woodland and is part of the CAP Reform for the SRDP.

Table 12.05: Scottish Forestry Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Programme and Running costs	14.8	17.9	17.5
Depreciation	0.1	0.1	0.1
Policy Regulation & Administration	3.9	-	-
Woodland Grants	46.0	46.0	56.8
EC Receipts	(20.8)	(20.8)	(26.9)
Total Scottish Forestry	44.0	43.2	47.5
of which:
Fiscal Resource*	43.9	43.1	24.9
Non-cash	0.1	0.1	0.1
Capital*	-	-	19.5
Financial Transactions	-	-	3.0
UK Funded AME	-	-	-

* £19.5 million of expenditure has been reclassified from resource to capital in 2020-21, reducing the resource budget and increasing the capital budget by that amount.

What the Forestry and Land Scotland budget does

The Forestry and Land Scotland budget protects and enhances Scotland's national forests and land. They have a key role to play in delivering the Scottish Government's ambitions and priorities for forestry and land management; including increasing activity to mitigate the Climate Emergency and other Programme for Government priorities.

Table 12.06: Forestry and Land Scotland Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
FLS Resource	18.1	14.1	13.6
FLS Capital	1.6	1.6	3.6
Total Forestry and Land Scotland	19.7	15.7	17.2
of which:
Fiscal Resource	18.1	14.1	13.6
Non-cash	-	-	-
Capital	1.6	1.6	3.6
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Rural Economy Enterprise budget does

The Rural Economy Enterprise budget funds our rural enterprise bodies: HIE the main economic development body operating in the Highlands and Islands; and SoSE the main enterprise agency operating in the south of Scotland. The budget supports the Scottish Government's ambition for inclusive growth and will support individuals, communities and businesses in some of our most rural, remote and fragile areas of Scotland.

Table 12.07: Rural Economy Enterprise Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Highlands and Islands Enterprise	71.7	61.1	58.2
South of Scotland Enterprise	10.0	13.3	28.1
Total HIE and SoSE	81.7	74.4	86.3
of which:
Fiscal Resource	33.5	34.5	37.8
Non-cash	15.0	5.0	7.6
Capital	33.2	33.9	33.9
Financial Transactions	-	1.0	7.0
UK Funded AME	-	-	-

Contribution to National Outcomes

This table summarises the portfolio's contributions to the Outcomes of the National Performance Framework.

Table 12.08: National Outcomes

EU support and related services

Primary National Outcome: Economy

Secondary National Outcomes: Environment, Communities, Fair Work and Business

The budget supports rural businesses including local communities, third sector, food and drink and farming and crofting. The majority of support goes to farming and crofting in line with EU rules. Farmers and crofters have a key role in supporting the rural economy and communities and are intrinsically linked to a number of other sectors including tourism and food and drink.

The budget provides essential support to maintain viable farming and crofting businesses across Scotland, retaining employment in remote areas and sustaining rural communities, particularly in the Less Favoured Areas (LFA) where incomes are lowest. In addition to LFA support, by continuing targeted support to those crofters and their families who would not otherwise be able to live in our remote and rural areas and work their crofts, we help strengthen our crofting communities.

The budget provides support to the food and drink sector supporting internationalisation given that food and drink is one of Scotland's largest exports and identified as a growth sector.

This budget also supports land managers to manage their land in an environmentally friendly way to support delivery of outcomes such as the Biodiversity Strategy, improving water quality, enhancing condition of protected nature sites and contributing to Scotland's climate change targets by reducing greenhouse gas emissions from agriculture and securing carbon stores in peatlands and other organic soils.

This budget supports delivery of environmental outcomes through a range of schemes under the Common Agricultural Policy (CAP). This includes greening which was introduced by the EU to improve the environmental performance of farming. These requirements cover permanent grassland - protecting permanent grassland designated as environmentally sensitive grassland; crop diversification - growing of a number of different crops which enhances biodiversity and may improve soil organic matter; and Ecological Focus Areas - an area of land where agricultural practices that are beneficial for the climate and the environment are carried out.

Over 2015-20 LEADER has supported almost 1,000 projects in our rural communities. Match funding of over £1 for every £1 grant funding has generated much needed support across Scotland. Projects that have been funded contribute to the wide agenda of driving community action on climate change to enhancing rural services and facilities.

Rural services

Primary National Outcome: Economy

Secondary National Outcomes: Communities, Health, Environment

The policies identified under this priority will support the diverse sectors operating in the rural economy and supporting sustainable rural communities including the food and drink sector whose turnover reached record levels in 2017, worth almost £15 billion, and is our largest exporting sector with exports growing year on year. The budget directly contributes to developing an inclusive and sustainable economy by ensuring that:

• Food products are fit for human consumption and export. Disease control measures across the industry - including veterinary surveillance - minimise disease outbreaks resulting in cost avoidance to the value of approximately £350 million.
• Our crops and plant health activities help support Scottish plants, across all sectors, worth an estimated £19.2 billion annually to a Scottish economy. SASA advice and services supports sustainable food production; supporting growers to reduce seed and crop health risks, monitor pests and minimise and target inputs. The impact of invasive pests and pathogens does not only affect the food production sector, it also has an impact on landscape reduction, biodiversity and carbon sequestration, particularly where tree health is affected.
• Through our one-to-one advisory services, that production is efficient and profitability has been increased, that employment has been safeguarded and environmental benefits have been gained.
• Through the provision of targeted support to enterprises and communities, by supporting repopulation of our rural and island communities and investing in the Women in Agriculture Taskforce.

Crofting is also supported through this budget which is a form of land tenure that is particular to the cultural heritage of the Scottish Highlands.

Fisheries and Aquaculture

Primary National Outcome: Economy

Secondary National Outcomes: Environment, Fair Work and Business

The marine economic sectors are an important driver for the local economy in rural coastal and island communities in Scotland and the marine environment is a valuable asset in Scotland generating income from tourism and providing a productive asset for offshore renewables, fishing and carbon capture and storage.

The actions funded under this priority will support the development of a first‑class fisheries management regime and the negotiation of fishing opportunities for the future, continue to deliver on the strategic farmed fish health framework, while safeguarding jobs in remote rural areas and supporting community-led local development. Further action will also support the development of the food and drink industry through developing high quality fisheries processing sector and to sustain existing markets and develop new premium markets for quality Scottish seafood products.

Scottish Forestry

Primary National Outcome: Environment

Secondary National Outcomes: Economy, Fair Work and Business, Communities, Education, Health

Scottish Forestry's work supports delivery across all 11 national outcomes. The work makes a particular contribution to national outcomes on:

• Environment: it supports the unique role of forests and woodlands in action to address climate change, evidenced in the Scottish Government's Climate Change Plan, and over £4 million of forestry grants to support the sustainable management of woodlands, in particular improving the condition of native woodlands.
• Economy, Fair Work and Business: forestry contributes £1 billion and around 25,000 jobs to Scotland's economy, and Scottish Forestry supports this through grant funding for expansion of sustainable, productive woodland to underpin investment in processing capacity, as well as grants to support investments by small forestry and farm businesses, mainly in rural areas. The Strategic Timber Transport Fund enables investment to reduce the impact on the environment and communities when transporting Scotland's timber to market, including shift to sea routes and opportunities for rail.

Scottish Forestry's work across rural and urban areas means it also contributes to many other outcomes. For example, its ground-breaking work on forest kindergartens is part of the Scottish Government's overall approach to improving educational standards. The award-winning Branching Out programme helps people recover from long-term mental health problems. Through forestry and health initiatives and over £1 million of forestry grants, Scottish Forestry also supports the development and management of public access in woodlands close to communities.

Forestry and Land Scotland (FLS)

Primary National Outcome: Environment

Secondary National Outcomes: Economy, Health, Communities, Education, Fair Work and Business

Forestry and Land Scotland has developed five Corporate Outcomes that will guide all of the work over the next three years, each of which set out a position statement of where we want to be by 2022.

Outcome 1: Supporting a Sustainable Rural Economy

Outcome 2: Looking after Scotland's national forests and land

Outcome 3: National forests and land for visitors and communities

Outcome 4: A Supportive, Safe and Inclusive Organisation

Outcome 5: A High Performing Organisation

All of the outcomes are reliant on each other and all support the delivery of FLS vision and mission, and ultimately the Scottish Government's outcomes and purpose.

FLS will help deliver across all 11 National Outcomes but through our five Corporate Outcomes we will make a particular contribution to the following National Outcomes:

• Economy via Outcomes 1 and 2
• Environment via Outcomes 1 and 2
• Health via Outcomes 2 and 3
• Communities via Outcome 3
• Education via Outcomes 3 and 4
• Fair work and business via Outcomes 4 and 5

For more information on how these will be progressed and measured please refer to our Corporate Plan https://forestryandland.gov.scot/images/corporate/corporate-plan/FLS-Corporate-Plan-2019-2022-v2.pdf

FLS is Scotland's largest land manager with a unique position with regard to the Scottish Government's land reform commitments. FLS have a particular role in encouraging local communities to consider opportunities to own, lease or use land. The way that FLS manage Scotland's national forests and land helps to reduce Scotland's environmental footprint and mitigate the disruption caused by a changing climate. Scotland's national forests and land contributes over £1 million per day to the Scottish economy in terms of GVA and supports more than 10,255 full-time equivalent jobs.

Rural Economy Enterprise

Primary National Outcome: Economy

Secondary National Outcomes: Fair Work and Business, International, Communities

HIE and SoSE are the Scottish Government's enterprise agencies supporting economic development in rural, island and coastal communities. The work of the agencies will contribute to economic development in their respective places and ensure that the Highlands and Islands and South of Scotland are highly successful, inclusive and prosperous regions in which increasing numbers of people choose to live, work, study and invest.

The Highlands and Islands Enterprise (HIE) budget works to accelerate business growth, strengthen communities, support growth sectors and develop Scotland's Highlands and Islands as a good place to do business, to stay in, to invest in, and to make a life, which supports the communities National Outcome.

South of Scotland Enterprise (SoSE) will drive sustainable and inclusive growth across the south of Scotland, harness the potential of its people and resources and sustain and grow its communities. With its remit of furthering the economic and social development and improving the amenity and environment of the south of Scotland, it will make a real difference to the quality of life of people in the south of Scotland.

A key focus for HIE and SoSE will be to inform and deliver the collaborative actions agreed by the Enterprise and Skills Strategic Board and to be responsive to emerging themes and priorities of the Board.