STA Update: Programme for Government 2024-25 – Key Headlines for Tourism & Hospitality Businesses
SUMMARY
Four priority areas for the Scottish Government to deliver:
-Eradicating Child Poverty
-Growing the Economy
-Tackling the Climate Emergency
-Ensuring High Quality and Sustainable Public Services
The First Minister stated that the commitments made in the PfG are: “practical, not partisan. They are affordable, impactful and deliverable.”
He stated: “It is not enough to simply have a strong economy. True prosperity goes beyond pounds and pence. It means an economy that is inclusive, that supports people into work, attracts investment, promotes entrepreneurs and innovators, and furthers our work on our path to net zero.
“Key to this will be increasing the levels of infrastructure investment and creating the right conditions for business investment.”
KEY HEADLINES FOR TOURISM AND HOSPITALITY BUSINESSES
Tourism mentions
-In his speech, the First Minister said: “Our economy is founded on industries of global reach in energy, financial services, food and drink, tourism, life sciences and advanced manufacturing.”
-In the PfG document, it sets out: “Support local authorities to implement the Visitor Levy – helping enhance the tourist experience and benefit local communities and their economies.”
-Commitment to continue to implement the Strategy for Sustainable Growth of the agritourism sector and support Scottish Agritourism as they prepare for the World Agritourism Conference in Scotland in 2026.
-To “intensify” work on designing a cruise ship levy and undertake the necessary public consultation.
New Deal for Business (NDFB)
-SG says it has listened to businesses and regulators on the cumulative impact of regulations and recognises the need for certainty, phasing, and effective implementation of regulations.
-States it recognises need to improve how businesses and government work together by delivering the commitments set out in the NDFB.
Economic growth, investment and planning
-To deliver programme of support through enterprise agencies to help businesses to start and scale, be more productive, access finance and attract investment, develop new products and services, enter new markets, and positively impact on their communities.
-To establish Scotland’s first Planning Hub to build capacity and resilience, and to improve consistency and efficiency in decision-making.
-To sign the Falkirk (including Grangemouth) and Argyll & Bute Regional Growth Deals.
-To empower decision making and investment through Regional Economic Partnerships, including pilot work on regional funding as part of wider public service reform to support Glasgow City’s ambitions to create a metropolitan region, and Edinburgh’s Regional Economic Prosperity Framework.
-Acknowledgement more needs to be done to boost infrastructure investment and create the right conditions for businesses. The SG has committed to make Scotland more attractive for investment.
-Commitment to create jobs, supporting innovation, and attracting investment through the work of the Scottish National Investment Bank.
-To deliver a co-ordinated programme to attract investment in priority areas of net zero, housing, and infrastructure by implementing recommendations from the Investor Panel and aligning government and public bodies behind this approach.
-To develop a national project pipeline of investment opportunities of the scale and impact of recent investments, such as Sumitomo and at Ardersier. To launch an online investment portal in 2025.
Skills and Workforce
-To expand Scotland’s Migration Service to provide more support for users – while making the case to the UK Government for “humane, principled, and needs-based migration.”
-To continue to make case for Rural Visa Pilot.
-Post-School Education Reform announced to simplify the post-school funding body landscape. Currently consulting on proposals to bring funding for learner support into one place, and funding for apprenticeships together into one place.
-New, national approach to skills planning and work with partners to strengthen regional approaches – bringing employers, colleges, universities, and other partners together to ensure the system is responsive to regional and national skills needs.
Digital connectivity
-To connect over 20,000 premises to gigabit capable broadband in areas of market failure by March 2025, through delivery of three regional, multi-year contracts with Openreach.
Transport
-To progress dualling the A9 – commencing construction of the Tomatin to Moy contract, and continuing procurement for the Tay Crossing to Ballinluig project.
-To begin final stage of the process for acquisition of land required for the A96 dualling between Inverness and Nairn, and progress work to determine the most suitable procurement option.~-To continue construction of the medium-term works for the A83 Rest and Be Thankful and publish the draft Orders for the long-term solution.
-Commitment to deliver three of the six new major ferries currently under construction, providing services for Arran and Islay, and progress the procurement of seven new electric ferries through Phase 1 of the Small Vessels Replacement Programme.
-To progress the Scotrail fleet replacement programme through the further development of specifications for life expiring rolling stock.
-To upgrade and reconfigure rail power supplies to support existing and future electrification– with further four ‘feeder stations’ to enter service by 2027.
-To launch a new Traveline Scotland journey planning website and app in Autumn 2024.
Culture and events
-To review the way the culture sector is supported, including a review of Creative Scotland. The SG has said this will “ensure the distribution of additional funding in the most effective way possible.
-To invite Scotland’s culture sector to join a partnership on Scottish festivals to focus on how best to support Scotland’s festivals and uphold their vital role within the sector.
-Restated commitment to increase funding for culture and the arts so that it is at least £100 million more a year by 2028.
-To work with key partners in all sectors to ensure all our upcoming events, such as the Orkney 2025 Island Games, deliver economic and social benefit to communities across Scotland.
-To support Screen Scotland to deliver on its Strategy to 2030, ensuring the screen sector can reach goal of £1 billion Gross Value Added to the Scottish economy by 2030.
Food and drink
-Draft Good Food Nation Plan to be placed before Parliament by the end of the parliamentary year and establish the Scottish Food Commission along the same timeframe.
Affordable housing
-SG approach to tackling the housing emergency about increasing the right mix of housing supply, in the right place – to ensure families have secure and affordable homes that meet their needs and helping boost economic growth.
-To invest nearly £600 million in affordable housing in 2024-25. The majority of this will be directed at boosting social housing supply.
-Up to £40 million will be invested in bringing existing homes into affordable use through acquisitions, and where appropriate also bring long term voids back into effective use.
-£100 million committed to grow with institutional investment to at least £500 million, supporting the construction of around 2,800 mid-market rent homes.
-To update guidance to encourage councils to focus their resources on homes that have been empty for longer than 12 months, including consulting on modernisation of the compulsory purchase system to help deliver a wide range of projects in the public interest.
-Working with local authorities to accelerate development of strategic sites such as Granton, unlocking opportunities for investment and economic growth and the provision of new homes of all tenures.
-Ensuring the planning system responds to the housing emergency, with the SG supporting planning authorities to allocate a pipeline of land for new homes and promote consistent monitoring of its delivery.
-To extend the services offered by SG’s new Planning Hub to support housing developments.
Note: The full Programme for Government can be viewed here.
