We use cookies to collect anonymous data to help us improve your site browsing experience.

Click 'Accept all cookies' to agree to all cookies that collect anonymous data. To only allow the cookies that make the site work, click 'Use essential cookies only.' Visit 'Set cookie preferences' to control specific cookies.

Set cookie preferences

Your cookie preferences have been saved. You can change your cookie settings at any time.

Publication - Corporate report

Scottish Budget 2025 to 2026

Published
4 December 2024
From
Cabinet Secretary for Finance and Local Government, +4 more … Chief Financial Officer, Director of Tax, Director-General Scottish Exchequer, Minister for Public Finance
Directorate
Exchequer Strategy Directorate, +3 more … Financial Management Directorate, Public Spending Directorate, Tax Directorate
Topic
Economy, Money and tax, Scottish Budget
ISBN
9781836910985

The Scottish Budget sets out the Scottish Government’s proposed spending and tax plans for 2025 to 2026, as presented to the Scottish Parliament.

View supporting documents Supporting documents

Chapter 10 Rural Affairs, Land Reform & Islands

Portfolio Responsibilities

Rural Affairs, Land Reform and Islands supports Scotland’s agriculture, forestry, food and drink, fishing and aquaculture sectors to become more sustainable, productive and prosperous. The responsibilities of this portfolio are diverse, and include farming and food production, animal health and welfare, plant health, peatlands protection and restoration, woodland creation, the development of our rural and island communities, land reform, supporting the food and drink industry, crofting, fishing, aquaculture, national parks and natural capital assets. The portfolio has a critical role in monitoring and protecting Scotland from highly damaging risks, such as animal and plant diseases.

We will support Scottish farmers, crofters, land managers and rural communities by providing over £660 million in support, including maintaining our direct payments to the sector and investing in transforming support for farming and food production in Scotland. We will provide a new £20 million transformation scheme to support this work. The Agri-Environment Scheme will continue to provide funding to farmers, crofters and land managers as they produce food in a way that reduces emissions and enhances nature.

Crofting is unique to Scotland and supports communities and land use across the Highlands and Islands of Scotland. Support for crofters continues through investment in the Crofting House Grant and Crofting Agricultural Grant Scheme. We will respond to the consultation on proposals for crofting law reform.

We will support our land-based and aquaculture industries by responding to recommendations of the Land Based Learning Review and supporting the growth of agritourism, as Scotland looks forward to host the World Agritourism Conference in 2026. We will lay the Good Food Nation Plan before Parliament and establish the Scottish Food Commission to drive forward progress on this vital work.

£35.5 million will help to fund the restoration of more than 15,000 hectares of degraded peatland and £53 million will be invested to create more than 11,000 hectares of woodland across Scotland.

We will continue to support our island communities through increased investment of over £9 million, supporting vital infrastructure projects through our Islands Programme, publishing a new National Islands Plan, helping communities navigate higher costs of living with the Islands Cost Crisis Emergency Fund and progressing the Carbon Neutral Islands project.

As the Land Reform Bill continues to progress through the Scottish Parliament, we will provide more opportunities to empower communities to own land through the Scottish Land Fund.

Funding of £14.5 million for the Marine Fund Scotland will be available to support innovation in our marine industries and deliver on our Blue Economy Vision. We will improve the consenting process for fish farming in Scotland and ensure that the governance and reporting model for Crown Estate Scotland maximises the value of sustainable wealth generated for Scotland.

The spending plans for Rural Affairs, Land Reform and Islands for 2025-26 will maximise the power of our land and seas to produce food sustainably, help tackle climate change, provide green jobs and protect and restore nature.

Rural Affairs, Land Reform and Islands intended contributions to the National Outcomes

Primary National Outcomes

  • Environment
  • Communities
  • Economy
  • Fair Work and Business

Secondary National Outcomes

  • Children and Young People
  • Education
  • Human Rights
  • Poverty
  • International
  • Culture
  • Health

For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.

Rural Affairs, Land Reform and Islands

The prior year 2024-25 Budget comparator figures are based on the latest in-year budget numbers which were revised at the Autumn Budget Revision. The 2023-24 Scottish Budget comparator figures reflect the outturn numbers for that year.

Table 10.01: Spending Plans (Level 2)
Level 2 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Agricultural Support and Related 658.6 705.1 715.5
Rural Services 51.8 57.0 56.0
Marine Funding 12.5 14.5 14.7
Marine 77.4 83.0 79.6
Islands 6.6 5.5 7.7
Land Reform 13.7 11.6 11.5
Scottish Forestry 87.5 70.2 83.1
Forestry and Land Scotland 45.6 31.5 27.2
Natural Resources and Peatland 29.2 40.3 63.7
Research Analysis and Other Services 83.4 85.8 88.8
Total Rural Affairs, Land Reform and Islands 1,066.2 1,104.5 1,147.8
of which
Total Fiscal Resource 852.3 913.9 915.8
of which Operating Costs 136.7 139.7 144.2
Non-cash 16.0 27.9 23.0
Capital 177.8 162.9 209.3
Financial Transactions (FTs) (0.7) (0.1) (0.3)
UK Funded AME 20.8 – –
Presentational Adjustments for Scottish Parliament Approval
Crofting Commission (0.1) (0.1) –
Animal License Fees 0.1 0.1 0.1
National Park (NDPB Non-Cash) (1.2) (1.2) (1.1)
Royal Botanical Gardens (NDPB Non-cash) (3.4) (3.5) (3.5)
Total Rural Affairs, Land Reform and Islands 1,061.6 1,099.9 1,143.8
Total Limit on Income (accruing resources) 300.0
Table 10.02: Agricultural Support and Related Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Pillar 1 - Basic payments 279.0 282.0 282.0
Pillar 1 - Greening payments 139.7 142.0 142.0
Pillar 1 - Other payments 49.7 50.7 50.7
Convergence Funding 0.1 1.8 –
Agricultural Transformation 1.5 4.5 23.0*
Technical Assistance 0.6 1.0 0.9
Agri Environment Measures 24.7 25.4 21.5
Business Development 9.8 10.2 10.4
Crofting Assistance 0.3 2.1 2.1
EU Income (4.7) – –
Forestry 0.1 0.1 –
Less Favoured Area Support Scheme 59.4 65.5 65.5
ARE Operations 87.5 102.4 106.1
Science and Advice for Scottish Agriculture 0.7 0.4 0.3
Agricultural Reform Programme 10.0 17.0 11.0
Total Agricultural Support & Related 658.6 705.1 715.5
of which
Total Fiscal Resource 626.2 663.0 657.3
Non-cash 4.9 16.2 11.5
Capital 27.5 25.9 46.8
FTs – – –
UK Funded AME – – –

*Includes £20m RALRI savings utilised in previous Scottish Budgets, the remainder of these savings will be returned as capital funding in 2026-27.

Table 10.03: Rural Services Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Agricultural & Horticultural Advice & Support 0.9 1.7 2.0
Animal Health 24.3 24.3 24.3
Crofting Commission 4.2 4.6 4.9
Food Industry Support 6.7 8.1 10.1
Community Led Local Delivery 10.2 12.2 9.0
Rural Economy and Communities 0.8 1.2 1.1
Veterinary Surveillance 4.9 4.9 4.6
Total Rural Services 51.8 57.0 56.0
of which
Total Fiscal Resource 49.1 54.0 49.9
Non-cash 0.1 0.1 –
Capital 2.8 2.9 6.1
FTs (0.2) – –
UK Funded AME – – –
Table 10.04: Marine Funding Spending (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
EU Fisheries Grants 1.3 – –
Fisheries Harbour Grant 0.5 0.5 0.2
Marine Fund Scotland 11.8 14.0 14.5
Marine EU Income (1.1) – –
Total Marine Funding 12.5 14.5 14.7
of which
Total Fiscal Resource 4.5 6.0 6.5
Non-cash – – –
Capital 8.2 8.5 8.5
FTs (0.3) – (0.3)
UK Funded AME – – –
Table 10.05: Marine Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Marine Directorate 77.4 83.0 79.6
Total Marine Directorate 77.4 83.0 79.6
of which
Total Fiscal Resource 67.7 69.6 66.6
Non-cash 5.4 6.1 5.7
Capital 3.5 7.3 7.3
FTs – – –
UK Funded AME 0.7 – –
Table 10.06: Islands Spending (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Carbon Neutral Islands 2.1 2.1 0.9
Islands Bonds – – –
Islands Plan 4.5 3.4 6.8
Total Islands 6.6 5.5 7.7
of which
Total Fiscal Resource 1.7 1.2 2.4
Non-cash – – –
Capital 4.9 4.3 5.3
FTs – – –
UK Funded AME – – –
Table 10.07: Land Reform Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Land Reform 12.2 10.0 9.8
Scottish Land Commission 1.4 1.6 1.7
Total Land Reform 13.7 11.6 11.5
of which
Fiscal Resource 5.8 6.6 6.5
Non-cash – – –
Capital 7.8 5.0 5.0
FTs – – –
UK Funded AME – – –
Table 10.08: Scottish Forestry Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Programme and Running costs 16.1 20.0 24.4
Depreciation 0.8 0.6 1.0
Woodland Grants 66.1 45.4 53.0
Forest Research (Cross Border Services) 4.5 4.3 4.7
EC Receipts – – –
Total Scottish Forestry 87.5 70.2 83.1
of which
Fiscal Resource 38.9 42.6 47.9
Non-cash 0.8 0.6 1.0
Capital 47.9 27.0 34.2
FTs (0.2) – –
UK Funded AME – – –
Table 10.09: Forestry and Land Scotland Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
FLS Resource 7.7 16.5 15.6
FLS Capital 37.9 15.0 11.6
Total Forestry and Land Scotland 45.6 31.5 27.2
of which
Fiscal Resource 7.7 16.5 15.6
Non-cash – – –
Capital 20.6 15.0 11.6
FTs – – –
UK Funded AME 17.3 – –
Table 10.10: Natural Resources and Peatland Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Natural Resources and Peatland 0.7 16.3 40.6
National Parks 28.5 24.0 23.1
Total Natural Resources and Peatland 29.2 40.3 63.7
of which
Fiscal Resource 17.4 21.1 26.3
Non-cash 1.2 1.2 1.1
Capital 8.2 18.2 36.3
FTs (0.1) (0.1) –
UK Funded AME 2.5 – –
Table 10.11: Research, Analysis and Other Spending Plans (Level 3)
Level 3 2023-24 Outturn £m 2024-25 ABR Budget £m 2025-26 Budget £m
Economic and Other Surveys 3.4 3.7 3.9
Programmes of Research 46.8 47.7 49.8
Royal Botanic Garden, Edinburgh 30.7 32.0 31.3
Strategic Policy, Research and Sponsorship 2.6 2.4 3.8
Total Research, Analysis and Other Services 83.4 85.8 88.8
of which
Fiscal Resource 33.3 33.3 36.9
Non-cash 3.5 3.7 3.7
Capital 46.3 48.8 48.2
FTs – – –
UK Funded AME 0.3 – –

Contact

Email: ScottishBudget@gov.scot

Back to top