Business and Policy February 2026 – Policy Update

Agri-Tourism Investment Scheme 

The Scottish Government have launched a new £1 million capital grant scheme for the Agri-Tourism Sector.  The Agri-Tourism Investment Scheme (AIS) is designed to help agritourism businesses in Scotland to be financially sustainable, profitable, and resilient businesses that will play a key role in sustaining the future of Scottish agriculture. 

The Scheme application window opened on the 19th of January 2026 and will close at midnight on Friday the 13th of March 2026. 

 

Key objectives of the Scheme are: 

• To increase the number of farms and crofts offering agri-tourism or farm retail to 1,000 by 2030. 

• To develop Scotland’s agri-tourism offering on-farm food and drink and farm experiences. 

• To support new innovative products and services in the agritourism sector. 

• To provide high quality, unique, and memorable market led experiences. 

• To contribute to strengthening rural communities and/or celebrating local heritage including farm heritage. 

• For 50% of agritourism and farm businesses to offer a food and drink experience using their own produce. 

 

Grant Funding 

While the maximum grant rate is 40%, the scheme is competitive and applicants may not receive all the funding they apply for.  

Please Note: AIS support can only be used for on-farm agritourism capital investments that will deliver the scheme’s objectives above.  Applications that deliver against more of the objectives are likely to be looked on more favourably. 

For more information on who and what is eligible for support, together with the information needed to apply for the scheme and the evidence you will be required to provide if your application is successful, please click on this link to the Scheme guidance on the Rural Payments and Services Website: 

Agritourism Investment Scheme (AIS)  

 

Agri-Environment Climate Scheme Update (AECS) 

As it is viewed that AECS continues to deliver significant benefits for farmers, crofters, and our environment; the Scottish Government have decided to extend the scheme to at least 2030.  To date, 3,417 businesses have been awarded a total of £339 million to fund a range of activities that help to maintain and enhance Scotland’s rich and varied natural environment.  

The 2026 round of the scheme will open for applications on Monday the 23rd of February.  The closing dates for the individual application periods are as follows:  

Application Round	Closing Date
Agri-Environment Scheme	20th of June 2026
Stand-alone Irrigation Lagoons	20th of June 2026
Agri-Environment combined with Organics and/or Irrigation Lagoons in the same application	20th of June 2026
Organics	31st of July 2026

Under AECS, the Scottish Government funds two types of activity – Management Options and Capital Items.   

The Management Options page on the Rural Payments and Services Website has guidance on the management activities that are being supported, with further links to each individual management option. Management options normally run for five years.  The Capital Items page has guidance about capital items and has links to each individual item. 

You are advised to read the pages for each option or capital item you wish to apply for, to check if you can meet all the requirements.  Some options are only available in certain parts of Scotland.  You can check which options are available on your land by entering your Holding Code(s) in the Targeting tool. You cannot apply for an option or capital item out with its target area unless you have obtained an Endorsement from NatureScot.  

Please note: 

• Slurry stores and Improving Public Access (IPA) are no longer being funded through AECS. 

• As part of an offer of AECS grant aid, businesses will be required to confirm when accepting their contract offer that, if they have employees, they pay at least the real Living Wage to all staff aged 16 and over (including apprentices) who are directly employed by their business, This also applies to sub-contractors.  For more information, please click on this link: Fair Work First 

 

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

All soil analysis, carbon audits, and/or animal health and welfare claims for the 2025 Preparing for Sustainable Farming Scheme year which ran from the 1st of January 2025 through to the 31st of 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.   

 

Drivers over 70 

Under plans to reform driving laws in Britain, drivers over the age of 70 will have to have their vision checked every three years.  With nearly one in four car drivers killed in 2024 being aged 70 or older; the changes are part of the UK Government’s new road safety strategy.  

Currently, drivers of any age are not required to prove their health or driving skills once they obtain their licence, but under a self-reporting system, drivers must tell the DVLA if they become unfit to drive.  The UK is only one of three countries who operate a self-reporting system. 

What actually happens when you turn 70?  When a driver reaches 70, their driving licence expires and it must be renewed if they want to continue driving.  Renewal is free but drivers must confirm that they meet the required medical standards.  Thereafter, licences must be renewed every three years.  Currently, drivers in the UK must be able to read a number plate from 20 metres away.  NHS Scotland provides free eye tests for all age groups. 

For further information, please click on this link Renew your driving licence if you’re 70 or over – GOV.UK.   

 

Agri Wages Board Minimum Wage Proposal 

A single minimum hourly rate for all agricultural workers, irrespective of age and duties has been proposed by the Scottish Agricultural Wage Board (SAWB).  If approved, the minimum hourly rate would increase by £0.50 per hour to equal the UK Government’s National Living Wage of £12.71. 

The proposed headline minimum rates are: 

• the overtime rate for all workers remains at 1.5 times the agreed hourly rate and will be £19.07 per hour. 

• an hourly rate of £8.00 – a 0.35p per hour increase – for workers who undertake an SCQF Level 4 or 5 or equivalent in Agriculture / Horticulture. 

• an additional sum of £1.91 per hour for workers who have appropriate qualifications. 

• where it is necessary for a worker to keep and feed a dog (or dogs) to enable them to do their job, they must be paid an allowance of £11.18 per working dog up to a maximum of four dogs. 

• the daily rate for accommodation off-set for accommodation provided by an employer other than a house is to be frozen at £10.66. 

SAWB have requested that any comments on the above proposal are made in writing to Saughton House or by email to SAWB@gov.scot by 4 March 2026. SAWB will meet again in March 2026 to consider any feedback received to the proposed increases.  Following discussion and if appropriate, SAWB members will then agree a Wages Order that will come into effect from 1 April 2026. 

 

Tenant Protection 

New regulations to protect tenants from damp and mould are being laid in the Scottish Parliament.  Linked to the death of two-year-old Awaab Ishak in 2020 from a respiratory condition caused by mould in his family’s housing association flat in England, regulations for Awaab’s Law are to be introduced in Scotland. 

The Investigation and Commencement of Repair (Scotland) Regulations 2026 Act, if approved by Parliament, will introduce new duties on landlords to investigate reports of damp and mould and to start any repairs needed within a set timescale.  

Regulation 3(3) amends section 14 of the 2006 Act to set out a private landlord’s duties to investigate and commence repairs in relation to damp or mould.  They must complete an investigation of the damp or mould within ten working days, provide a written summary of the investigation to the tenant within three working days, and secure that any required relevant safety work is commenced within five working days.  If a landlord cannot comply within the given timescales for reasons out with their control, the tenant must be informed, given a revised timescale and reasonable steps must be taken where practicable to minimise the extent to which the house is affected by damp or mould. 

It is anticipated that these new regulations will come into force on the 6th of October 2026.  Further details, are available through this link:  

The Investigation and Commencement of Repair (Scotland) Regulations 2026 

 

Rural and Island Communities 

Rural and island communities across Scotland face growing challenges in delivering both elderly care and childcare, as rapidly ageing populations, workforce shortages and rising costs place increasing strain on local services and economies, according to a new report, led by Professor Steven Thomson, SRUC and undertaken as part of the Scottish Government’s Strategic Research Programme 2022-2027.   

The report reveals new insights into how demographic change is driving a reshaping of demand for care in rural and island communities at a much faster pace than in urban Scotland and examines spatial differences and how pressures have intensified over time.  

Rural and island communities are experiencing a double challenge: rising demand for elderly care alongside persistent barriers to accessing affordable childcare.  Both are essential to sustaining local workforces and economic activity, yet both are becoming harder to deliver in areas facing ageing populations, recruitment difficulties, and higher operating costs.  

In some communities, a declining care-home footprint and difficulties recruiting health and social care staff mean older residents are increasingly reliant on informal, family-based or community support, often placing additional pressure on households already facing high living costs.  

At the same time, limited access to affordable childcare is constraining opportunities for younger families, particularly women, to participate fully in the labour market.  These barriers reinforce population decline and undermine efforts to attract and retain working-age residents, creating long-term risks for economic sustainability.  

Child poverty remains a serious concern, with one in five children in rural areas living in relative poverty.  Families often face limited access to childcare, healthcare and transport, compounding financial pressures and reducing employment options.  For older residents, higher fuel costs, poorer housing energy efficiency, and reduced service access further exacerbate inequality and vulnerability.  

As well as addressing the challenges of childcare and elderly care provision in rural areas, the report explores a range of other critical issues, including demographic change, housing and energy costs, experiences of poverty (including fuel poverty), transport and connectivity (including digital connectivity, changing freight volumes at Scotland’s ports and the seasonality of car and passenger travel by ferries). The report also looks at changes in agriculture (including changes in livestock numbers, workforce engagement rates, payment levels to farmers, and supported activity on common grazings).   

Further analysis will be published over the coming year, drawing on new census outputs across demography, migration, housing, education, labour markets, and health.  

To access the report, please click on this link: Rural & Islands Insight Report 2025  

 

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

 

Relevant Scottish Government Publications 

Date	Publication
6 January 2026	Visitor Levy Amendment Bill published - gov.scot
24 January 2026	Avian influenza (bird flu) outbreaks - gov.scot
26 January 2026	Sheep scab notifications - gov.scot
29 January 2026	Business Insights and Conditions in Scotland (wave 148)

 

Key Dates

Date	Action
26 February 2026	Preparing for Sustainable Farming - Whole Farm Plan Claim deadline
1 March 2026	Start of no hedge cutting period
2 April 2026	Deadline for RPID to receive an application to transfer Basic Payment Scheme entitlements with an effective date of 15 May this year