Infrastructure Investment Plan 2021-22 to 2025-26: progress report 2022 to 2023

Thematic Progress

The Infrastructure Investment Plan 2021-22 to 2025-26 set out a clear vision for our future infrastructure to enable an inclusive net zero emissions economy and support economic recovery. Underpinning this vision are the following three themes, the basis of which support the First Minister's 'New Leadership - A Fresh Start' policy prospectus published in April 2023:

Enabling net zero emissions and environmental sustainability

As set in the Climate Change (Emissions Reduction Targets) (Scotland) Act 2019, Scotland has put in to legislation some of the toughest emissions reductions targets in the world, including a 75% reduction in greenhouse gases by 2030 (compared to 1990) and to achieve net zero emissions by 2045. This will require transformative action across all sectors of the economy and across society. The Scottish Government's investment in publicly-funded infrastructure, set out in the IIP, has a critical role to play in supporting the transition – the commitment to multi-year investments in the IIP sent a clear signal to supply chains to invest in people and technology, to help us deliver the net zero transition.

The IIP established investment in our natural capital as a key aspect of infrastructure investment. Natural areas or systems that are managed to provide multiple benefits for the environment and human wellbeing can be described as 'natural infrastructure'. Scotland's natural capital is fundamental to our economy and our wellbeing. Investment in natural infrastructure creates significant opportunities for improving biodiversity and reducing emissions, while also creating jobs and a wide range of health and wellbeing benefits, including improved urban air quality and protection from flooding. This is why, in the IIP, we adopted an updated definition for infrastructure to include natural infrastructure – the broadest definition of infrastructure in the UK.

Driving inclusive economic growth

Infrastructure is an enabler of sustainable, inclusive economic growth. Internal analysis by the Office of the Chief Economic Advisor has shown that an investment led stimulus has both a short-term demand effect but also a longer term supply effect on economic performance. Investments set out in the IIP will enhance Scotland's productivity, competitiveness, innovation, trade and inward investment by:

• Boosting our international and country-wide digital connectivity and capacity, particularly in rural areas.
• Enhancing our transport infrastructure, focusing on a safe and resilient strategic transport network which also contributes to net zero and inclusive economic growth.
• Supporting construction with a strong pipeline of work and ensure Scottish businesses and supply chains can capitalise on our investment in low carbon.

This approach embeds fairness and inclusion, addressing the drivers of poverty and seeking to ensure no-one is left behind. We will invest in the right strategic projects for every part of Scotland to aid city and regional growth; invest in bus infrastructure and tackle poor energy efficiency.

Building resilient and sustainable places

Delivering on our ambitions for a fairer Scotland starts at the local community level. The IIP supports opportunities in our cities, towns, villages and neighbourhoods to bring together individual investments for greater impact.

Through our Place based Investment Programme, we will implement the Place Principle at pace to ensure that investment is relevant to each place and for the benefit of all the people in that place. This is a collaborative place-based approach driven by the needs of communities – collectively getting behind community led changes at the heart of an area.

It is ever more crucial to ensure everyone has a suitable home at the heart of a great place to live and work - the new emphasis on localism, with quality homes in quality places, informed by concepts such as 20-minute neighbourhoods will help to achieve that.

The following section of the report reflects on the progress and key achievements within the last year in relation to the three thematic elements of the IIP and associated subthemes, as well as what activity is planned for the year ahead.