Infrastructure Investment Plan 2021-22 to 2025-26: progress report 2024 to 2025

Annex A: Progress on the Infrastructure Commission for Scotland’s recommendations.

The following information relates to the latest progress of the recommendations made by the Infrastructure Commission for Scotland (ICfS) in its Phase 1 & 2 Key Findings report.^[1]

Phase 1 Recommendations

Leadership

Recommendations under this theme include the introduction of a transparent infrastructure prioritisation framework and a 30-year infrastructure needs assessment to inform the next Infrastructure Investment Plan (IIP).

The Scottish Government are using the ICfS recommendations to guide an infrastructure improvement programme that aims to improve infrastructure delivery and performance underpinned by a strategic plan and framework for longer term decision making. Work continues with the Scottish Futures Trust (SFT) to deliver the Infrastructure Improvement Programme, including work to develop a system wide Infrastructure Needs Assessment to support delivery of the next IIP.

As highlighted in last year’s progress report, the Medium Term Financial Strategy (MTFS) published on 23 May 2023 committed to extend the current IIP by one year, taking it to 2026-27.^[2] The next IIP will therefore be implemented from financial year 2027-28.

Making the most of existing assets

Recommendations under this theme include maintaining existing infrastructure over new infrastructure and to favour shared facilities over construction of new, single purpose assets. The development of guidance for relevant authorities to infrastructure maintenance and prioritisation; to establish a route map for the implementation of a system of resource use, reduction, collection, treatment and repurposing; and to develop a clear implementation plan, to address critical natural and built infrastructure climate resilience and adaptation need.

The Scottish Government responded to this recommendation in the IIP 2021-22 to 2025-26 with the Infrastructure Hierarchy, and this remains a cornerstone of our investment decision making. Our colleagues at SFT have also published a Public Sector Asset Strategy and this work continues to be embedded across the public sector.^[3]

The Scottish Government continues to implement the Scottish Climate Change Adaptation Plan 2 (SCCAP2) programme, with annual progress reporting to the Scottish Parliament.^[4] Alongside delivering SCCAP2 in January 2024, the First Minister launched the third Scottish National Adaptation Plan in September 2024.^[5] This plan is our most comprehensive response to date to ensure Scotland is building our resilience in the face of a changing climate. The plan sets out over 200 commitments across a wide policy landscape, bringing forward a range of tools, guidance and support for the wider public and private sectors and households, so lives and livelihoods can continue to thrive in a changing climate.

Scotland’s Circular Economy & Waste Route Map to 2030 was published in December 2024.^[6] The final document sets out an ambitious plan to deliver 11 priority actions to drive sustainable use of our resources and progress a circular economy in Scotland by 2030. The Route Map includes clear timelines to deliver these actions to maximise progress, as well as outlining areas where the pace can be accelerated should the future fiscal situation allow before 2030. This follows two Route Map consultations in 2022 and 2024, with consistently high levels of support for the proposals. The priority actions reflect the feedback from the most recent consultation, including from businesses and local government, ensuring we can deliver focused and targeted progress towards a circular economy, that is both affordable and deliverable.

Delivering a system-wide transformation to 2030 is a shared challenge and we will be working closely with local government and the business community to ensure the approach has collaboration and co-design at its heart. The Route Map’s actions are complemented by provisions in the Circular Economy (Scotland) Act 2024 – together they will help us achieve our sustainable resource and climate goals.^[7]

Additionally, the Scottish Government is aiming to finalise the next Climate Change Plan in spring 2026 which will set out policies and proposals on mitigation for the period up to 2040.

Transport

On transport, ICfS recommended that Scottish Government and Transport Scotland should ensure that its new National Transport Strategy and Strategic Transports Projects Review 2 fully reflects an inclusive net zero carbon economy and consider infrastructure and the use of it as a holistic system. Scotland’s National Transport Strategy (NTS 2) fully reflects the need to deliver our ambitious net zero targets, with the Sustainable Travel Hierarchy and Sustainable Investment Hierarchy at its core.^[8]

In December 2024, Transport Scotland published the fourth NTS Delivery Plan^[9] which outlines a range of actions being taken forward by the Scottish Government in 2024 and 2025, including continuing to support the development of Scotland’s electric vehicle charging infrastructure, implementing the actions from the Aviation Statement; and developing the Trunk Roads Adaptation Plan^[10] and the Rail Services Decarbonisation Plan.^[11] Alongside the Delivery Plan, Transport Scotland published the NTS Monitoring and Evaluation Report, outlining progress towards achieving the outcomes in the Strategy against a 2019 baseline.^[12]

Development of the second Strategic Transport Projects Review (STPR2) Delivery Plan is underway. This takes account of the current financial climate and is examining existing schemes across all modes in addition to the longer term STPR2 recommendations. The Scottish Government will continue to consider its longer-term infrastructure plans after we receive clarity from the UK Government over our multi-year capital funding envelope following completion of the UK Government's Spending Review in Spring 2025.

Furthermore, to enable a managed transition to an inclusive net zero carbon economy road infrastructure, the Scottish Government’s draft route map for reducing car use contained a commitment to further explore equitable options for demand management.^[13] This research, published in December 2024, therefore considers the need to protect people in rural areas, on low incomes or who share protected characteristics. While the conclusions reached by the consultants do not represent Scottish Government policy, the research produced adds Scotland-specific advice to the evidence base on how to reduce car use fairly. This is made available to central and local governments to inform their own policy development and decision making on demand management going forward. It sets out clearly the emissions, equality and socio-economic impacts of each shortlisted option, including mitigations.

Taxation of the motoring transport sector – Fuel Duty, Vehicle Excise Duty and the rates of VAT for charging infrastructure – is reserved to the UK Government and they must act to ensure these taxes are fit for purpose as the sector increasingly shifts to electric vehicles (EVs). Motoring tax reform was an agenda item of the Inter-Ministerial Group on Transport in March 2025. Ministers discussed the relationship between motoring taxes and the transition to Electric Vehicles (EVs), as well as the potential impact of developing technology on the EV charging landscape. Ministers agreed to keep an open dialogue on the matter and to share details with His Majesty’s Treasury (HMT). The Scottish Government believes that motoring tax policy should evolve to reflect changes in the transport sector and compliment wider transport policies and net zero objectives. The Scottish Government continue to press UK Government to engage on motoring tax reform, and it must be on a four-nation basis to ensure our diverse communities and geography are treated fairly.

Finally, ICfS recommended that Scottish Government and Transport Scotland develop a new investment appraisal and decision-making process. Investment Decision Making (IDM) is being considered as part of the ongoing work on the STPR2 Delivery Plan. The intention is that an IDM Guidance Update will follow thereafter.

Regulation

ICfS made recommendations regarding Energy and Telecoms regulation, and for the Scottish and UK Governments to work together to develop an appropriately devolved regulatory and pricing framework that enables energy and telecoms infrastructure investment to be planned and delivered to meet the future needs of Scotland.

The regulatory and pricing framework around telecoms is wholly reserved to UK Parliament. However, the Scottish Government has continued to play an active role - working with UK Government and Ofcom to highlight Scotland-specific issues and ensuring that wider barriers to telecoms deployment in Scotland are understood and addressed. For example, in the past year, the Scottish Government amended building standards to require developers to ensure that all new build homes can access gigabit broadband.

There were recommendations regarding formal regulation around water provision and flood management. Scotland’s First Flood Resilience Strategy was published in December 2024 and sets out what is needed to make our communities more flood resilient over coming decades.^[14] This Strategy is evidence of Scottish Government’s long-term commitment to flood resilience and has been developed in direct response to the climate emergency and the challenges that Scotland faces. An additional £15 million has been set aside in the 2025-2026 Scottish Budget to support the delivery of the Strategy, wider flooding resilience and coastal adaptation work. The strategy puts people at the heart of the process and supports an increase in the range and rate of delivery of actions both to manage our flood exposure, and to reduce the impacts of flooding when it does occur.

The Scottish Government consulted (from November 2023 to February 2024) on the proposed strategic principles, and considerations in developing policy for the future of the water industry.^[15] Following the consultation in 2024, policy proposals for water, waste and drainage network management are ongoing with work across all water sector partners. Additional governance work is ongoing to clarify roles and responsibilities across the partners to support the forthcoming strategic review of water charges for the next regulatory period.

Digital and Technology

The ICfS recommended the Scottish Government provide the leadership required to ensure the delivery of a full-fibre network by 2027 to enable the transition to 5G.

Scottish Government-led investment programmes are continuing to extend full fibre networks into non-commercial areas. The R100 programme exceeded the 2024-25 PFG commitment to deliver 20,000 connections and deployment continues into 2025-26 - bringing future-proofed infrastructure to some of our hardest to reach communities.^[16] Scottish Government is also collaborating with UK Government on the delivery of Project Gigabit in Scotland - a UKG-funded initiative that aims to extend full fibre and gigabit-capable coverage as far as possible across the UK. The Scottish Government has launched four local and regional procurements in the past year, with one contract awarded (as at April 2025) and more to follow during 2025. This fibre infrastructure will extend capability across a range of digital services, including 5G.

Furthermore, ICfS recommended that Scottish Government should ensure Scotland's place in the world and increase its international presence and connectivity resilience. Scottish Government is working closely with Scottish Enterprise (SE) and Scottish Development International to position Scotland as a location for green data hosting and new international fibre cables. Green Data Centres are one of the target industries highlighted in the 2024 Green Industrial Strategy and a range of activity is underway to attract new investment to Scotland and to support the growth of the indigenous data centre market.^[17] Scottish Government and SE are also collaborating with UK Government on the AI Growth Zones initiative, which has seen several Scottish local authorities express an interest in hosting data centres. Scottish Government Officials, including the Minister for Public Finance, presented the Scottish Government's strategic interest international fibre optic cables at the March 2025 plenary of the European Subsea Cable Association and engaged proactively with major subsea market players.

Lastly, the ICfS made a recommendation to consider the future data requirements and data potential for all new publicly funded infrastructure and the use of digital services associated with the assets. This work continues to be incorporated into the broader Data Maturity offer, which is part of the Scottish Governments Digital Programme, enabling organisations to make better decisions when designing and building high quality, user-focussed digital public services.^[18]

The role of the public

The Scottish Government has committed to a multi-stakeholder approach to the next Infrastructure Investment Plan. Work continues with SFT to improve engagement on infrastructure improvement work. This has strong links to the Open Government Action Plan 2021-25, which has fiscal openness and transparency as one of its five core objectives.^[19]

Phase 2 Recommendations

Prioritisation and decision making

In Phase 2 of its recommendations, ICfS recommended that, to support infrastructure decision making that will prioritise an inclusive net zero carbon economy, the Scottish Government should ensure implementation of our phase 1 Report recommendations. As outlined above, Scottish Government continue to implement and report updates on these recommendations.

Systems and behaviours

ICfS recommended that the "one public sector" outcome-based approach should be developed for Scotland’s places. This would build on changes within the Planning Scotland Act (2019), establishing a clear duty to co-produce and co-deliver existing and proposed spatial plans and includes the necessary shared accountability measures.^[20] How this effectively compliments and learns from Community Planning Partnerships, Local Area Improvement Plans, Locality Plans and Local Place Plans should be reviewed, to make as efficient and streamlined as possible, while ensuring collaboration becomes a required practice.

Scottish Government continue to promote the Place Principle in collaboration with COSLA which sets out an approach to delivering good and improved places.^[21] For those responsible for managing services in a place, the Place Principle encourages us to work more collaboratively across sectors and with communities. It asks us to first address the distinct needs of a place, embed a shared vision for improving or changing the place; and to combine our knowledge, resources and investment where possible to maximise the impact of outcomes for local people.

To help put the Place Principle into action, a Place Framework was designed as a consistent appraisal process to ensure that any investment decision is aligned well to local place priorities. The Place Framework proposes that before investing in a place, it is first necessary to have established a common place narrative, a shared action plan and a meaningful oversight structure.

Enabling digital technology

ICfS recommended for a centrally held data resource to be developed, to provide open-source data that will inform place need and demand, including effective asset development, refurbishment and use, for an inclusive net zero carbon economy.

Progress has been made with targeted activities. In April, a new inbound payment service went live in private beta with Loch Lomond and the Trossachs National Park Authority. This has introduced the ability to pay by card, either by the applicant or the client submitting the application on their behalf. Behind the scenes, it has made it easier to request additional payments where the incorrect fee has been paid and introduced a simplified refund process. The new service will extend to two more private beta partners in the coming months, with the public beta roll out to take place from summer 2025.

Multi-year funding is in the final stages of being secured for a new Apply service to replace eDevelopment. External expertise will be commissioned for the build, with a tendering process due to get underway this spring/summer. The service will be delivered in phases, with development scheduled to be begin in autumn 2025. The first version will be live by summer 2026, followed by further iterations thereafter. The programme team have begun engagement with stakeholders and, as the project progresses, will continue to work closely with all partners to shape the service as it develops.

Resources

The ICfS recommended Scottish Government, in partnership with the private sector, third sector and communities, should further develop and harness the essential skills to develop and improve our places. This should include establishing and directly supporting an appropriately experienced and co-ordinated skill resource for the prioritisation, planning and delivery of infrastructure, which is available to all local authority stakeholders, across spatial levels. In early 2025, Scottish Government launched our Future Planners Programme to strengthen Scotland's planning profession.^[22] The programme will provide 18 student planners a fixed term contract within Scottish Government whilst being supported to undertake a post graduate degree in planning. In addition to the Future Planners Programme, Scottish Government are offering 30 post graduate students a bursary to support them through a post graduate planning degree.

In March 2025, Scottish Government launched our Skills Commitment Plan which is led by Scottish Government and supported by a range of public and private organisations.^[23] The Commitment Plan rolls out a co-ordinated monthly training programme to increase planning skills across the country.

The Scottish Government are thankful to the Commission for their recommendations and work will continue to implement the recommendations. As noted in the 2024 Annual Progress Report, many of the ICfS recommendations are complete. An update on the progress of the ICfS recommendations that are still ongoing will continue to be published annually.