Scottish Land & Estates (SLE) has said the imminent UK budget has the chance to re-stabilise the rural economy and support the sector in its vision of a sustainable future.

In its pre-budget submission, SLE highlighted several key areas where government action is essential, including rural housing, agriculture, tourism and land management, asserting that improvements in these sectors would benefit the entire country.

The SLE have called for the introduction of rural impact assessments, that would ensure government policies are developed with rural communities in mind, providing consideration and protection for those living rurally.

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Jackie McCreery, legal adviser at SLE, said: “Rural Scotland contributes enormously to the UK, from producing food to generating renewable energy and providing essential ecosystem services.

“Rural communities often feel sidelined when policies are made, as their unique challenges are overlooked. That’s why we’re urging the UK Government to implement Rural Impact Assessments, ensuring that any legislation is fit for purpose in rural areas and supports the needs of these vital communities.

In addition, they propose extending agricultural property relief from inheritance tax to factor in land used for environmental management. Thus, supporting those within the rural sector who are leading the way in tackling climate change, and incentivising more farmers or landowners to follow suit.

They also suggest that the removal of VAT on the conversion of unused rural properties and the development of new affordable housing could aid in the reversal of Scotland’s current housing crisis. Jackie said: “Housing is also one of the most critical issues facing rural Scotland. Removing VAT on the conversion of disused buildings into homes and incentivising affordable housing development will help alleviate the housing shortage in rural areas. This is not just about building homes; it's about building rural communities.”

As well as advocating for the reinstatement of favourable tax treatment for furnished holiday lets, highlighting its importance in bolstering rural businesses and the economic health of rural Scotland.

The SLE also advised the introduction of a five-year agricultural funding package to allow farmers to plan with confidence and to encourage new people into the sector via farm tenancies incorporating the taxation system.

Jackie said: “The rural economy must be at the heart of national planning. From decarbonising our homes to supporting agricultural innovation, there are huge opportunities for the government to take decisive steps.

“However, unless fiscal policy is designed with rural needs in mind, we risk widening the gap between urban and rural Scotland," she concluded.