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Publication - Corporate report

Scottish Budget 2021 to 2022

Published
28 January 2021
Directorate
Budget and Public Spending Directorate
Part of
Money and tax, Scottish Budget
ISBN
9781800045507

The Scottish Budget sets out the Scottish Government’s proposed spending and tax plans for 2021 to 2022, as presented to the Scottish Parliament.

This document is part of a collection

View supporting documents Supporting documents

Chapter 12 Rural Economy and Tourism Portfolio

Portfolio Responsibilities

Rural Economy and Tourism is a diverse portfolio which includes farming and food production, animal health and welfare, plant health, food and drink, fisheries, crofting, aquaculture, forestry and rural enterprise and economic development, as well as tourism and hospitality.

It covers a range of responsibilities which contribute to the economic wellbeing of rural Scotland whilst protecting and improving the natural environment, helping address the impact of climate change through sector-led groups and biodiversity loss by working with the public, private and third sectors as well as our local communities.

The portfolio remains focused on minimising and addressing the significant impacts of the UK's exit from the EU as well as the extraordinary challenges in terms of survival and green recovery from an unprecedented global pandemic. It will invest to create stability and mitigate those impacts on rural, coastal and island communities and businesses.

Investment will support building towards a better sustainable green future through job creation and retention, enhancing the contribution of forestry by significantly increasing woodland creation, and supporting tourism, hospitality and food and drink as well as rural communities in their recovery.

Table 12.01: Spending Plans (Level 2)
Level 2 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
Agricultural Support and Related Services* 176.8 597.5 801.2
Rural Services 35.1 34.6 41.1
Fisheries and Aquaculture 5.9 5.9 20.4
Rural Economy Enterprise 74.4 86.3 106.5
Scottish Forestry 43.2 47.5 83.7
Forestry and Land Scotland 15.7 17.2 37.5
Tourism 45.2 50.6 55.1
Allocation of COVID consequentials - - 25.0
Total Rural Economy and Tourism 396.3 839.6 1,170.5
of which:
Total Fiscal Resource 281.3 837.7 932.5
of which Operating Costs 89.0 95.4 102.0
Non-cash 39.1 46.2 46.2
Capital 70.9 116.0 163.2
Financial Transactions (FTs)** 5.0 (160.3) 28.6
UK Funded AME - - -

* The increased spend reflects EU funding now being received from the UK Government.

** The Financial Transactions total presented here represents the 'net' portfolio position after adjusting for forecast Financial Transactions income. To see the 'gross' or total amount of financial transactions that will be spent by the portfolio in 2021-22, please see Annex A.

Presentational Adjustments for Scottish Parliament Approval
Level 2 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
Crofting Commission (NDPB Non-cash) (0.1) (0.1) (0.1)
Highland and Islands Enterprise (NDPB Non-cash) (5.0) (5.1) (5.1)
South of Scotland Enterprise (NDPB Non-cash) - (2.5) (2.5)
VisitScotland (NDPB Non-cash) (1.4) (1.4) (1.4)
Animal Licence Fees (Other) 0.1 0.1 0.1
Total Rural Economy and Tourism 389.9 830.6 1,161.5
Total Limit on Income (accruing resources) 800.00
Table 12.02: Agricultural Support and Related Spending Plans (Level 3)
Level 3 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
Pillar 1 - Basic payments 262.0 282.0 282.0
Pillar 1 - Greening payments 131.5 142.0 142.0
Pillar 1 - payments 44.5 48.0 61.0
Convergence Funding - 95.7 25.7
Agricultural Transformation Fund - 40.0 40.0
Agri-Environmental Measures 43.0 42.7 34.2
Business Development* 24.1 (172.3) 17.1
Crofting Assistance 0.8 0.8 0.8
EU Income** (533.7) (74.3) (24.0)
Forestry 0.9 0.4 0.2
Leader 20.4 22.2 10.4
Less Favoured Area Support Scheme 52.4 30.2 65.5
ARE Operations 129.9 139.5 144.8
Technical Assistance 1.0 0.6 1.5
Total Agricultural Support and Related 176.8 597.5 801.2
of which:
Fiscal Resource 113.2 682.7 707.8
Non-cash 32.5 37.0 37.0
Capital 27.1 48.1 36.4
FTs 4.0 (170.3) 20.0
UK Funded AME - - -

* In 2020-21, budget includes a technical adjustment of -£190.3 million which represents planned loan repayments across the portfolio.

** The reduction in EU income reflects funding now being received from the UK Government. The remainder of the EU income relates to funding for legacy projects.

Table 12.03: Rural Services Spending Plans (Level 3)
Level 3 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
Agricultural and Horticultural Advice and Support* 2.2 2.5 2.2
Animal Health 17.8 17.2 18.9
Crofting Commission 2.8 2.8 3.3
Food Industry Support 6.5 6.6 10.5
Rural Cohesion* 0.6 0.6 1.3
Veterinary Surveillance 5.2 4.9 4.9
Total Rural Services 35.1 34.6 41.1
of which:
Fiscal Resource 35.0 34.5 41.0
Non-cash 0.1 0.1 0.1
Capital - - -
FTs - - -
UK Funded AME - - -

* From 2021-22 the budget for LANTRA (the Sector Skills Council for Land-based industries) is now included within Rural Cohesion.

Table 12.04: Fisheries Spending Plans (Level 3)
Level 3 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
Marine Fund Scotland - - 14.5
EU Fisheries Grants 14.1 14.1 14.1
Fisheries Harbour Grants 1.0 1.0 1.0
Marine EU Income (9.2) (9.2) (9.2)
Total Fisheries 5.9 5.9 20.4
of which:
Fiscal Resource 1.5 1.5 16.0
Non-cash - - -
Capital 4.4 4.4 4.4
FTs - - -
UK Funded AME - - -
Table 12.05: Rural Economy Enterprise Spending Plans (Level 3)
Level 3 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
Highlands and Islands Enterprise 61.1 58.2 67.6
South of Scotland Enterprise 13.3 28.1 35.7
Low Carbon Economy - - 3.2
Total HIE and SOSE 74.4 86.3 106.5
of which:
Fiscal Resource 34.5 37.8 44.5
Non-cash 5.0 7.6 7.6
Capital 33.9 33.9 46.8
FTs 1.0 7.0 7.6
UK Funded AME - - -
Table 12.06: Scottish Forestry Spending Plans (Level 3)
Level 3 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
Programme and Running costs 17.9 17.5 18.1
Depreciation 0.1 0.1 0.1
Woodland Grants 46.0 56.8 62.8
Forest Research (Cross Border Services) - - 2.7
EC Receipts (20.8) (26.9) -
Total Scottish Forestry 43.2 47.5 83.7
of which:
Fiscal Resource 43.1 24.9 37.6
Non-cash 0.1 0.1 0.1
Capital - 19.5 45.0
FTs - 3.0 1.0
UK Funded AME - - -
Table 12.07: Forestry and Land Scotland Spending Plans (Level 3)
Level 3 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
FLS Resource 14.1 13.6 15.4
FLS Capital 1.6 3.6 22.1
Total Forestry and Land Scotland 15.7 17.2 37.5
of which:
Fiscal Resource 14.1 13.6 15.4
Non-cash - - -
Capital 1.6 3.6 22.1
FTs - - -
UK Funded AME - - -
Table 12.08: Tourism Spending Plans (Level 3)
Level 3 2019-20 Budget 2020-21 Budget 2021-22 Budget
£m £m £m
Tourism 45.2 50.6 55.1
Total Tourism 45.2 50.6 55.1
of which:
Fiscal Resource 39.9 42.7 45.2
Non-cash 1.4 1.4 1.4
Capital 3.9 6.5 8.5
FTs - - -
UK Funded AME - - -

Rural Economy and Tourism contributions to the National Outcomes

Primary National Outcomes

  • Economy
  • Environment
  • Culture

Secondary National Outcomes

  • Communities
  • Fair Work & Business
  • Health
  • Education
  • International

For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equalities and Fairer Scotland Budget Statement.

Contact

Email: Finance.Co-ordination@gov.scot

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