Stephen Young, Director of Policy at Scottish Land & Estates, stated that the budget had missed an opportunity to demonstrate the Scottish Government's commitment to rural Scotland. He highlighted a real-terms cut of 3.1% to the rural budget, while other government departments received funding increases.
Young emphasised the significant role of rural Scotland in delivering for the nation, and expressed concern that the budget does not adequately reflect this contribution.
Mr Young said: "We called for a multi-annual agricultural funding settlement to be announced to provide certainty for farming businesses and whilst it is positive that there has been no reduction in Pillar 1 payments, we still have little certainty beyond 2026.
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"We await further information on the £23 million announced for agricultural transformation and how this will be directed. Whilst this is essentially the return of funding previously removed from the portfolio, it is positive that the industry will have access to this cash but it needs the input of all stakeholders to ensure it can be targeted effectively for those on the ground.
"£11.5 million is allocated for land reform - a significant sum that we would question when only £18 million is assigned for nature restoration which is an emergency that Scotland needs to urgently address.
"It does appear that the Scottish Government has budgeted for a large uplift in funding for new homes – but no detail is provided on how much of that cash will make its way to supporting the delivery of housing in rural areas. Building new homes is essential for tackling rural depopulation and we need to see action from the Scottish Government as the draft Housing Bill fails to tackle the main issue – increasing housing supply.
"Overall, the block grant available to the Scottish Government has increased significantly but it does not appear to have been passed on in any way to rural Scotland.
"Rural businesses are on the frontline when the government talks about climate change and food security but progress can only be achieved when it is underpinned by sufficient and meaningful funding."
