Chamber and committees

As set out in the answer to question S6W-34488, the responsibility of undertaking a full Island communities impact assessment is on local authorities. Additionally, Local authorities have the power to charge different rates and exemptions for different geographical areas. Each local authority has a responsibility to publish assessment of the impacts of introducing a Visitor Levy, and they have a statutory requirement to consult with local communities, businesses, and the public, prior to the introduction of a Visitor Levy.

We formed an Expert Group made up of key representatives from the tourism industry and local government, chaired by Visit Scotland. The Group developed Guidance for local authorities on introducing and administering a visitor levy. Chapter 18 of guidance published October 2024 has further details of what is required of local authorities when implicating a Visitor levy Visitor Levy Guidance I VisitScotland.org.

The Scottish Government continues to support the development of our ports, and the potential for new direct freight and passenger ferry services linking Scotland to Europe.

I have personally engaged with parties interested in introducing new ferry services, and Transport Scotland officials communicate regularly with potential operators and Scotland’s main ports.

The Scottish Government and its agencies have supported a number of maritime initiatives across Scotland, including establishing a Green Freeport at Forth Ports, which includes Rosyth. This involves both seed capital funding, along with businesses locating within the ports being able to access a package of devolved and reserved tax incentives.

We will continue to engage with port operators and others to explore opportunities for new commercial ferry services, so that Scottish exporters and passengers have more direct routes to and from Europe. However, the Scottish Government cannot subsidise routes in ways which would be anti-competitive beyond considering the availability of limited start-up grant funding opportunities for freight initiatives.

No applications for a Freight Facilities Grant have been rejected between 2021 and January 2025.

Any company which wants to move freight by rail or water rather than by road and which is proposing to invest in new freight handling facilities in Scotland or re-invest in existing facilities in Scotland may apply for FFG. Before making a formal application for FFG, a company is expected to approach Transport Scotland who will be able to give informal advice on whether, and to what extent, a freight facility may be eligible for FFG.

On receipt of the formal application, Transport Scotland may decide to seek independent engineering advice to examine the design and specification of the project. The costs of this will be borne by Transport Scotland. A visit to the site of the proposed facility, by Transport Scotland and by its appointed consultant, will be necessary.

Since the introduction of the scheme in 1997, applications have typically taken between 3-6 months to complete. However, it can take longer depending upon the complexity of the proposal and the time taken by the applicant to supply the information.

The application process for FFG is currently under review ahead of potential awards in financial year 2025-26.

Taking freight off congested roads and moving it by rail or water can ensure that freight is moved in an efficient, flexible and sustainable manner. Freight Facilities Grant (FFG) can act as an enabler for companies investing in facilities that without FFG, would not happen as they would not be commercially viable

Freight Facilities Grants are open to any company, including SMEs, who can demonstrate that they can transfer freight from road to rail or water.

To date, no applications under Freight Facilities Grant have been received specifically promoting low carbon or zero emission solutions. However, the movement of freight by rail rather than road, especially over long distances, can result in lower emissions.

To date, no applicant has sought to include within an award of Freight Facilities Grant the integration of digital technologies as a specific element of a funded project.

Taking freight off congested roads and moving it by rail or water can have environmental and wider social benefits but it can be more expensive. Freight Facilities Grant (FFG) is therefore available to assist with the extra costs generally associated with moving freight by rail or water by offsetting the capital costs of providing the required freight handling facilities. It is also available to help companies reinvest in existing rail or water freight facilities where the traffic may revert to road transport.

The value of environmental and social benefits is based on calculating the benefits of removing one lorry mile of freight from road and transferring it to rail or water.

Monitoring is undertaken after a facility funded under the grant scheme becomes operational.

The Freight Facilities Grant is a well-known scheme having been in operation since 1997. Transport Scotland continues to raise the profile of the scheme across all areas of the Scottish economy. In March 2025, it is intended to undertake an exercise with stakeholders asking for applications for 2025-26, working with industry bodies representing a range of sectors.