Business and January 2026 – Policy Brief

Round up of 2026 

At the start of the year, following Storm Babet, the Scottish Government announced that a National Flood Advisory Service would be established to improve Scotland’s flood resilience and to embed best practice on a nationwide scale.   Key actions for the service included support for smaller flood protection schemes and property level flood resilience.  

The Scottish Government also announced that a new Housing Planning Hub would be operational in 2025; the aim of which, is to increase the rate at which homes that require planning permission are delivered.  The hub will tackle reasons for delays including lengthy negotiations in relation to Section 75 Agreements. 

In February, as part of the Scottish Government’s Strategic Framework for Biodiversity, the Natural Environment (Scotland) Bill was introduced and is now currently at Stage 3 in the Parliamentary process. The bill places a duty on Ministers to set legally binding nature restoration targets and is aimed at modernising how national parks and deer are managed, with measures to protect biodiversity loss and to reduce harmful carbon emissions.  

March saw the introduction of the Future Farming Investment Scheme which was aimed at offering flexible capital grants to support investments in efficiency, nature and climate friendly farming.  The initial budget of £14 million was increased to £21.4 million after the Scottish Government received a total of 7,584 applications when the Scheme closed on the 22nd of August.  

In May, the Health and Safety Executive (HSE) announced that they were extending the approval of the use of glyphosate until the 15th of December 2026 to allow them time to assess whether glyphosate continues to meet the approval criteria for an active substance in Great Britain, following a supporting dossier submitted by the Glyphosate Renewal Group. 

May also saw the launch of the Next Generation Practical Training Fund with a budget of at least £300,000 per annum.  The fund has been designed to aid more new entrants and young farmers to get practical training to help launch their agricultural careers.  The fund will remain open until March 2027. 

June saw the launch of the Peatland Training Fund which aims to provide financial support to over-16s living in Scotland who are looking to develop skills to support their peatland career and to support people already working in peatland restoration who want to enhance their skills through additional training. In general, 50% funding is available up to a maximum of £1,000 per application through Skills Hub Scotland.  

In July, the Office for National Statistics announced that a record number of farms had been forced to close over the past year.  The 6,365 agricultural, forestry, and fishing businesses recorded marks the highest number of closures since records began in 2017. 

November saw the introduction of new regulations for applying waste to land.  From the 1st of November 2025, under the Environmental Authorisation (Scotland) Regulations (EASR) 2018, new regulations apply to anyone using waste (like treated sewage sludge) to improve soil. Anyone that carries out the application of waste to land for the purpose of soil improvement activities will have to apply for a new EASR authorisation through SEPA.  

On the 23rd December 2025, following significant lobbying by farmers, the UK Government announced that they will introduce an amendment to the Finance Bill 2025 to increase the threshold at which 100% Agricultural Property Relief and Business Property Relief applies, from £1 million to £2.5 million per estate, with 50% relief continuing to apply to qualifying assets above that level.  This will allow spouses or civil partners to pass on up to £5m in qualifying agricultural or business assets between them before paying inheritance tax, on top of existing allowances.  This amendment will apply to people who are widowed and have lost spouses or civil partners before the policy was introduced.   The change will be introduced to the Finance Bill in January and will apply from the 6th of April 2026. 

Last, and definitely not least, the 16th of December saw the passing of the Land Reform (Scotland) Bill 2025.  Key provisions of the Bill include: modernisation of agricultural tenancy laws, seeking to protecting tenants and small landholders if they are evicted from their holdings, establishing a new Commissioner to oversee land and community issues;  and in seeking to prevent concentrated land ownership, and to promote access to land, the Bill will give Ministers the power to split up land-holdings over 1,000 hectares when being offered for sale, provided that it is in the public interest to do so. 

 

Looking to 2026 and beyond…  

 

Muirburn 

Under the Wildlife Management & Muirburn (Scotland) Act 2024, a licence will be required for all muirburn activities in Scotland.  This comes into effect on 1 January 2026. 

 

Sheep and Goats 

All keepers of sheep and goats in Scotland must complete the online Sheep and Goat Inventory via the ScotEID website by midnight on the 30 January 2026.  Failure to complete the inventory by the deadline may result in legal consequences.  

 

Preparing for Sustainable Farming (PSF) – 2025 Year Grant Claims  

All carbon audits, soil analysis and/or animal health and welfare claims for the Scheme year -1st January 2025 to 31st December 2025 must be submitted by midnight on 28th February 2026.  Full guidance on how to make a claim is available on the Preparing for Sustainable farming portal on the Rural Payments and Services Website.  Please note - late claims will be rejected for payment.  At the time of writing, no announcements have been made as to whether the PFS scheme funding will be continued in 2026. 

 

Slurry Storage  

From the 1st of January 2026, under the Water Environment (Controlled Activities) (Scotland) Amendment Regulations 2021, all businesses out with NVZ areas which produce slurry from housed livestock must have sufficient slurry storage capacity equivalent to:  

• 26 weeks for housed pigs and/or  

• 22 weeks for housed cattle  

This capacity must also be sufficient to capture and store any rainwater entering the system, including runoff from dirty yards, silage pits and parlour washings. For more information, please click on this link - Farming and Water Scotland - Slurry and Manure Storage  

 

Visitor Levies 

A bill is being prepared to give councils greater flexibility over how they design and implement a visitor levy.  While the Visitor Levy (Scotland) Act 2024 grants councils the power to raise funds for tourist services and facilities by applying a charge on overnight stays based on a percentage of accommodation costs; new proposals will give councils the option of setting a fixed amount instead. Councils will also be given the option of setting different fixed amounts for different geographical locations, times of year or types of accommodation.  

The legislation will also clarify how levies are applied to sales via third parties, such as booking platforms, and the information accommodation providers must share with councils.  The bill is intended to be introduced in early 2026.  

 

Relevant Scottish Government Publications

Date	Publication
17 December 25	Antimicrobial resistance
16 December 25	Rural Scotland data dashboard 2025: data tables
17 December 25	Livestock identification and traceability: guidance
17 December 25	The First National Good Food Nation Plan
17 December 25	The First National Good Food Nation Plan (Gaelic)

 

Key Dates

Date	Action
14 January 26	Deadline for Scottish Suckler Beef Support Scheme 2025 applications
15 January 26	Start of Management period for EFA Fallow
30 January 26	The Sheep and Goat Annual Inventory (SGAI) Closes at on 30 January 2026.This is a legal requirement for all keepers of sheep and goats in Scotland.  Please ensure you complete your inventory within the deadline.
28 February 26	Whole Farm Plan Claim deadline

 

 

Christine Beaton, christine.beaton@sac.co.uk