Business and Policy June 2025 – Policy Brief

Programme for Government 2025-2026 

The First Minister, John Swinney has set out his Programme for Government for 2025 to 2026. 

It will focus on: 

• growing the economy 

• eradicating child poverty 

• tackling the climate emergency 

• ensuring high quality and sustainable public services. 

Under this programme, the Government plans to introduce the Crofting and Land Court Bill before the summer recess.  The focus of which will be to simplify crofting regulation, support entry to crofting, encourage more use of common grazings including for environmental purposes,  and to modify the Crofting Commission’s regulatory roles and powers.   

Another Bill being introduced is the Heat in Buildings Bill which aims at decarbonising Scotland’s heating systems by 2045.  Following the consultation process, the initial Bill has been revised taking out the requirement for new homeowners to have to replace fossil fuel heating systems within a specified period after purchase and, more broadly, for all fossil fuel heating systems to have been replaced with more environmentally friendly systems by 2045.   However, it is expected that powers to set minimum energy efficiency standards for owner/occupier and non-domestic properties, subject to further consideration will be introduced.  

Other industry relevant Bills currently going through the Scottish Parliament are: 

• The Natural Environment (Scotland) Bill – Stage 1 

• The Land Reform (Scotland) Bill – Stage 2 

2025 Climate Change Committee Report 

The seventh Climate Change Committee (CCC) report has been published recommending a limit on the UK’s greenhouse gas emissions over the five-year period 2038 to 2042 of 535 MtCO2e, including emissions from international aviation and shipping.  While deemed by the Committee to be an ambitious target, they advocate that it is deliverable, provided action is taken rapidly.  

This seventh carbon budget is expected to be delivered through 5 sectors: 

1. Electricity – including renewables, electric vehicles (EVs) 
2. Demand – increased efficiency and low carbon choices. 
3. Low Carbon Farming, Fuels and Carbon Capture and Storage 
4. Nature – including peatland restoration and tree planting 
5. Engineered Removals – including biochar and direct air removal 

The plan is estimated to cost £750 million a year over 25 years (~ 0.4% of Scotland’s GDP) and will require not only huge changes in vehicle use, home heating and energy generation but also has stark implications for agriculture in terms of a reduction in the number of cattle and sheep on Scottish farms and the desire to reduce meat consumption per person per week from 2025 through to 2050, as shown in the charts below: 

Source: Scotland’s Carbon Budgets Report 2025 – Section 3.2 Balanced Pathway by Sector 

 

The finer detail contained in the report identifies the focus areas and steps the Climate Change Committee deem necessary to meet the Greenhouse Gas Targets: 

1. Adopting low-carbon farming practices and technologies to achieve a 48% reduction in emissions by 2035.  
2. Introducing 29 measures to target livestock emissions to achieve a reduction of 25% in emissions by 2035 including using feed additives to inhibit methane in cattle; breeding and livestock health measures to reduce emission intensity; and better management of animal waste, plus measures to reduce emissions from soils with regards fertiliser and waste management. 
3. Decarbonising machinery to achieve a 23% reduction in emissions by 2035.  This includes a reduction in machinery use linked to lower livestock numbers and the electrification of machinery with the exception of larger off-road mobile machinery, which will switch to hydrogen.  Bioenergy to be phased out by 2040. 
4. Reducing livestock numbers to achieve a 48% reduction in emissions by 2035. Cattle and sheep numbers should drop 26 per cent by 2035 and by 36 per cent by 2045, with average meat (especially beef and lamb) consumption down 20 per cent by 2035 and 30 per cent by 2045.  It is advocated that the fall in livestock numbers will be linked to changes in agricultural policy enabling livestock farmers to diversify income streams coupled with a shift in UK-wide consumption towards lower-carbon foods and improvements in productivity from livestock measures e.g. improving livestock health and robotic milking parlours.   
5. Introducing four further measures to achieve a 4% reduction in emissions by 2035. These are: 

• Sustainable improvements in crop yields, 
• Reducing food waste,  
• Shifting some horticultural production to indoor systems, and  
• Nitrous oxide savings from the restoration and sustainable management of lowland cropland on peat. 

These proposals will have far reaching implications, not just for Scottish Agriculture but for rural communities that rely on agricultural income, and in particular, income streams from cattle and sheep production.   

While the report also recommends that the Scottish Government should provide incentives and markets for farmers and land managers to diversify their incomes for actions such as woodland creation, peatland restoration, agroforestry, and renewable energy. These are generally high-cost options with very long payback periods.   

The Climate Change Committee report recommendations are very much at odds with QMS advocating in the same week for every suckler producer to increase their herd size by 2 cows per year over the next 5 years to meet demand for beef.  Further information on QMS’s proposals is given in our Further Articles section.  

 

 Next Generation Farming – Apprenticeships 

Following an initial pilot scheme, the Scottish Government have a new Land Based Pre-Apprenticeship Programme funded with £1.8 million over the next three years together with a relaunch of the Next Generation Practical Training Fund.   

The Next Generation Fund is open from now until March 2027 with at least £300,000 of funding a year to help young people access skills training in a flexible, individual way.  The schemes have been designed to help more new entrants and young farmers to get practical training to help launch their agricultural careers.   

For more information on these schemes, please email Lantra Scotland at: scotland@lantra.co.uk or click on this link. 

 

Bluetongue (BTV) Virus Vaccine 

Following the confirmation of the first case of bluetongue virus serotype (BTV-3) in England in November 2023, and the announcement that on 1 July 2025, the restricted zone for bluetongue will be extended to cover all of England;  the Scottish Government has completed a Veterinary Risk Assessment (VRA) to assess the risk of BTV-3 reaching Scotland this season.  

Although there is currently no substantial change to risk, the Chief Veterinary Officer (CVO) for Scotland has decided to allow Scottish livestock keepers to vaccinate their animals using one of the permitted vaccines.   

To aid any future surveillance requirements, you must record any cattle, sheep, and goats that you vaccinate on ScotEID.  Other susceptible species including deer and camelids species not captured on ScotEID should be recorded using the reporting service on UK Government Website using this link Report your use of the bluetongue serotype 3 (BTV-3) vaccine – GOV.UK   

Please note: Using a vaccine will mean that the vaccinated animals cannot be exported out of GB to the EU or Northern Ireland.  

While the English Government have announced their timetable of controls; the Scottish and Welsh Governments are expected to announce changes to their controls by 12 June 2025.  For more information please see online at on GOV.WALES and gov.scot. 

 

Scottish Upland Sheep Support Scheme (SUSSS) 

Payments have started for the Scottish Upland Sheep Support Scheme, with ~ 95% of payments processed by the end of May 2025.  This scheme provides additional support on top of the Basic Payment Scheme to sheep producers who farm in Scotland’s rough grazing areas.  The 2024 payment rate has increased to £63.49 per eligible ewe hogg, up from £61.38 in 2023.  The Scheme is expected to continue through to 2026. 

Key dates  

Date	Action
1 June 25	June Census 2025 opens online – ends 30 June 2025
9 June 25	Final Deadline for SAF submission
12 June 25	Final Deadline for AECS Applications
12 June 25	AECS – application deadline for Organic Conversion and Maintenance.    Stand-alone application deadline is the 31st of July 2025

christine.beaton@sac.co.uk