Business rates reform, planning improvements and permanent rail fare changes were among the headline announcements in John Swinney’s Programme for Government yesterday.
The first minister has promised a range of reforms aimed at improving Scotland’s economic environment, with a particular focus on planning, regulation and support for key sectors such as hospitality, exports and clean energy.
Among the most eye-catching announcements is a permanent abolition of peak rail fares, effective from 1 September 2025. The SNP leader said the decision “puts more money in people’s pockets” and supports the shift to low-carbon transport.
The programme also includes a long-awaited independent review of Non-Domestic Rates for the licensed hospitality sector, following a charge led by Aberdeen & Grampian Chamber of Commerce (AGCC). However, there was disappointment that this review will not be extended to other sectors also struggling under the current rates system.
In a further nod to business concerns, Swinney pledged to tackle regulatory burdens and improve the planning system, with an audit of planning teams and additional resources to increase capacity. Regulatory controls in key growth sectors - housing, public infrastructure, and green industries - will also be reviewed by the end of 2025.
Russell Borthwick, Chief Executive of AGCC, welcomed the direction of travel, but warned that more ambition and urgency is needed.
He said: “AGCC supports all measures that will make our region more attractive to investors and help businesses grow and flourish. Action to tackle delays and barriers to development within the planning system is long overdue. Increasing planning capacity and resources should help speed up the energy transition, boost housing supply and enable developers to create jobs and economic growth.
“Our members in the licensed hospitality sector will welcome the announcement of an independent review of the valuation mechanism for Non-Domestic Rates, but those in other sectors will regret that it is not wider in scope.
“On rail, we recognise that the abolition of peak rail fares will help encourage a return to the workplace, but we remind the Scottish Government that the North-east is still poorly served in terms of rail network, services and fares compared to the rest of Scotland. We need the same access to quality services as other parts of the country.”
Elsewhere, the government plans to create InvestScotland, a single front door for inward investment, and will encourage co-investment from public and private pension funds in Scottish projects and businesses.
A new University Proof of Concept Fund will support research projects with significant economic potential, while additional funding will be directed towards supporting women in business.
On the energy front, the Scottish Government reaffirmed its support for the Acorn Carbon Capture and Storage project, describing it as of “national strategic importance”. However, AGCC called for a step change in support.
Mr Borthwick added: “We welcome the recognition of Acorn as a key part of our clean energy future. But the £8.5million allocated for the Just Transition Fund is simply not up to the scale of the challenge. Hundreds of jobs are already disappearing in our energy supply chain as early decommissioning accelerates in the North Sea. The Scottish Government needs to get real, to learn the lessons from Grangemouth and act now, with urgency and with proper resources.”
There will be no change to the Scottish Government’s position on tuition fees, free prescriptions, bus travel or eye tests, and no further divergence from UK income tax policy for the remainder of this Parliament.