Chamber and committees

Scotland has a strong record in attracting foreign direct investment and our Inward Investment Plan (IIP) plays a central role in supporting this by targeting key sectors including HealthTech, energy transition and advanced manufacturing.

Scotland’s IIP outlines a plan for Scotland to be a leading destination for inward investment aligned with Scotland’s values of fair work, net zero and inclusive prosperity. It takes an evidence-led approach to identifying Scotland’s strengths, aligning these with current and projected global investment flows, and set out a series of actions to attract high quality inward investment to Scotland.

The Scottish Government and Enterprise Agencies work closely with both domestic and international businesses to secure and grow their operations in Scotland, ensuring long-term economic benefit and job creation.

ZeroAvia’s recent investment at Glasgow Airport, is one example of how our approach to inward investment, aligned with our values and net zero goals, is delivering real results, and creating high-value jobs. Scotland remains the top UK location for inward investment outside of London for the ninth year running, securing a record 142 projects in 2023 – a testament to the strength of our strong investment approach.

The Climate Change Committee’s projection of a 36% reduction in cattle and sheep numbers by 2045 is based on UK-wide dietary modelling and does not reflect Scotland-specific market dynamics. The Scottish Government has no policy to reduce livestock numbers and is committed to supporting the sector to improve productivity, resilience and emissions intensity.

Alongside exploring options such as improved breeding and methane-reducing feed products, the Scottish Government is supporting rural communities to integrate new income streams alongside existing farming enterprises, including through tree planting and bioenergy crops.

We are also investing £40 million annually through the Scottish Suckler Beef Support Scheme to help improve beef herd efficiency, implementing calving interval conditionality. This support enables farmers to reduce emissions intensity while maintaining production – ensuring that high-quality Scottish beef continues to be produced sustainably..

The Care Inspectorate is the independent scrutiny body and regulator for care services in Scotland. It looks at the quality of care in Scotland (including in Early Learning and Childcare (ELC) settings) to ensure it meets high standards and to promote the safety, protection and wellbeing of all service users including children in ELC settings.

The Care Inspectorate publishes an annual report with their national findings on the availability and quality of registered daycare of children and childminding services for children and families across Scotland. The most recent report was published on 24 September 2024: Early Learning and Childcare Statistics 2023.

Figure 10 in this report provides quality data in relation to all daycare of children and childminding services:

Figure 10: Percentage of services holding evaluations of good or better, and very good or excellent in all assessed themes or key questions, 2014 to 2023.

To support the expansion of funded early learning and childcare (ELC) to 1140 hours per eligible child, the Scottish Government provided £476 million of capital funding to local authorities between 2017-18 and 2020-21. Supplemented by local authorities’ own funding, the 1140 expansion infrastructure programme includes 583 refurbishment projects, 124 extension projects and 157 new build projects. Over the course of the 1140 expansion infrastructure programme, no local authority has reported to the Scottish Government that its ELC estate is not fit for purpose. Statutory requirements for the fitness of premises to be used for the provision of ELC are set out in Section 10 of The Social Care and Social Work Improvement Scotland (Requirements for Care Services) Regulations 2011.

Scotland already produces a wide range of fruit and vegetables; the Scottish Government provides funding through the Fruit and Vegetables Aid Scheme enabling groups of growers, recognised as Producer Organisations (POs), to increase their competitiveness in the supply chain. We have confirmed that support for the Fruit and Vegetables Aid Scheme in Scotland will continue for another round of operational programmes from 2026, and remain committed to supporting the valuable fruit and vegetable sector in Scotland.

The Scottish Government recently carried out a consultation looking to review livestock feed controls. We are currently analysing responses to our proposals to relax rules to allow wider use of processed animal protein (PAP) in animal feed. These changes would allow our legislation to reflect current scientific evidence and advice, and allow business innovation in the animal feed sector. They would also allow the Scottish Government to support industry in achieving sustainable farming goals by reducing reliance on imported Soyabean and fishmeal protein for poultry and pig feed.

The Scottish Government’s Land Use Strategy supports our ambition to achieve sustainable land use in Scotland.

The third Strategy was published in March 2021 and resets our focus on the integrated nature of land use, by showcasing the range of demands and benefits we get from our land.

It is through understanding these multiple and sometimes conflicting relationships that we can look to secure the fine balance that will be needed to allow our land to contribute sustainably to our multiple long term national priorities.

The initial development of Scotland’s fourth Land Use Strategy began in late 2024, with the final strategy due for publication in 2026. It will continue our focus on integration and deriving multiple benefits from land.

We are currently working to finalise the Bioenergy Policy Statement (BPS).The draft BPS sets out the ambition for the future of bioenergy, including outlining principles and priorities for biomass use, pathways for bioenergy with carbon capture and storage, and the potential to scale up the domestic planting of perennial energy crops. Developing a thriving and homegrown market for the domestic production of energy crops can help deliver a just transition for our energy sector and provide opportunities for rural communities.

Our draft BPS highlights that expanding the domestic planting of energy crops must only be done where it does not negatively impact wider land use needs, and requirements, such as sustainable food production, and development of the bioenergy sector must align with and support Scotland’s goals for protecting and restoring nature.

As part of our over-arching Just Transition approach, key sectors are taking steps to support our rural and island communities as we work to reduce our carbon emissions, in particular providing equitable access to funding, ensuring anyone who meets the eligibility criteria can access the financial support they need. Examples include:

• The Small Producers Pilot Fund, where we are helping producers regardless of location to access vital services such as private kill facilities at abattoirs. This approach is part of our broader commitment to empowering small producers to contribute meaningfully to the Vision for Agriculture, ensuring that support is inclusive and regionally balanced.
• The Forestry Grant Scheme, available across Scotland, with over half of the applications being for small woodlands, many from farmers and crofters. A small woods loans scheme is available to help those developing small scale applications access grants, and the level of support for smaller woodland projects has been increased to help counter inflationary pressures. There are also targeted grants with enhanced rates to support crofters for native woodland creation in the crofting counties, including the Western and Northern Isles.
• Peatland ACTION funding, which primarily supports on-the-ground peatland restoration activities and is open for applications from eligible land managers who have peatlands that would benefit from restoration. There are no geographical restrictions or target areas for Peatland ACTION funding.
• The Scottish Government's Nature Restoration Fund, which supports projects that are planning and delivering on the ground activity to protect and restore Scotland's biodiversity while helping us build resilience to climate change. There are no geographical restrictions for the Nature Restoration Fund.
• The FIRNS grant scheme, to support projects that shape and grow the use of private investment and market-based mechanisms to finance the restoration of Scotland’s nature.

Forecasts for the Scottish economy, including inflation, are produced by the independent Scottish Fiscal Commission. Their most recent forecasts were published on 29 May (https://fiscalcommission.scot/wp-content/uploads/2025/05/Scotlands-Economic-And-Fiscal-Forecasts-May-2025.pdf).

The Scottish Government has costed the one percentage point above inflation that the Agenda For Change pay deal for 2025-26 and 2026-27 guarantees and is monitoring monthly.

The information requested is not held centrally by the Scottish Government. The Care Inspectorate report data publicly on their Data Store which may be able to assist with this question or alternatively the Care Inspectorate could be approached directly for a response.

The Scottish Government is working with local authorities and other partners to develop long-term workforce plans that address retention issues and support staff wellbeing across the ELC sector.

In 2025-26, we are providing £9.7 million to local authorities to enable payment of the real Living Wage to childcare workers in private and voluntary services providing funded ELC. Building on last year’s recurring investment of £16 million, this funding for the further increase to at least £12.60 per hour demonstrates our commitment to the Fair Work agenda. The Scottish Government remains the only part of the UK to fund the payment of the real Living Wage to ELC staff in the private and third sectors.

In addition, we have worked with partners to develop a range of new resources for the childcare workforce, including a new continuous professional learning portal which features a mental health and wellbeing resource specifically for early years professionals. We are working with Skills Development Scotland and funded partners in the private and voluntary sector to pilot ways of working that support efficiencies in services and allow practitioners to prioritise their professional learning within working hours.