Chamber and committees

The Scottish Government will invest over a billion pounds (£1,148 million) in 2025-26 in the Rural Affairs, Land Reform and Islands (RALRI) budget to support Scottish farmers, crofters, land managers, islands and rural communities.

We continue to directly support Scottish farmers, crofters and land managers by providing over £660 million, including by maintaining our direct payments to the sector and in ensuring support for those farming and crofting in our upland and most challenging areas of Scotland through the £65.5 million Less Favoured Area Support Scheme (LFASS). The 2025-26 budget includes returning £20 million to support transformation and reform in Scotland’s farming and food production industry, as pledged to the sector.

Our Vision for Scottish Agriculture states that farming, crofting and land management will continue to play an important role in maintaining thriving rural and island communities and this is further reaffirmed in the Agriculture and Rural Communities (Scotland) Act 2024 objective of enabling rural communities to thrive.

We fully recognise that this is a challenging time for families. Importantly, no-one needs a formal diagnosis to apply for Child or Adult Disability Payment; decisions about eligibility are based on the individual’s level of needs, rather than a diagnosis.

Once a decision is made the award will commence from the date of application where the conditions of entitlement were met at this point.

We urge anyone applying on behalf of a terminally ill child to use our fast-tracked route so that they and their family can access the maximum level of financial support they are entitled to – quickly and with dignity.

The number of applications that the Energy Consents Unit (ECU) has received from Scottish and Southern Electricity Networks (SSEN) over the last ten years, including those which have been referred to the Planning & Environmental Appeals Division (DPEA) for a public inquiry, and instances in which Scottish Ministers have agreed with the DPEA’s recommendations, are as follows:

The Scottish Medicines Consortium (SMC) appraises newly licensed medicines for clinical and cost-effectiveness to help Health Boards determine whether a medicine should be accepted for routine use within the NHS in Scotland. Following the appraisal process, the SMC publishes advice for Health Boards in Scotland to consider. The SMC does not issue tailored guidance for specific medicines.

The Scottish Government is committed to improving connectivity in rural areas and are considering alternative models of public transport delivery.

The second Strategic Transport Projects Review recommends that pilot schemes, involving demand responsive transport and Mobility as a Service (MaaS) draw on innovative solutions, international best practice, and smart technologies. Following the successful completion and evaluation of our £2 million MaaS Investment Fund - of which the evaluation report can be found on the Transport Scotland website. Transport Scotland continues to work with MaaS Scotland and the Regional Transport Partnerships (RTPs) to build on this work to develop innovative, digital data driven solutions to provide better access to flexible transport options.

The 2025-26 Scottish Budget includes £188.7 million for a range of active and sustainable travel measures to make it easier for people to walk, wheel or cycle on everyday journeys and access resilient and efficient bus services. Funding of £167,000 is being provided in 2024-25 to enable CTA Scotland to provide support for community transport groups that already exist, renew those that have lapsed and support the formation of others where there are currently none.

There are Scottish Government funds available which Regional Transport Partnerships (RTPs) and Local Authorities can use to tailor their approach to sustainable travel provision in rural areas. These include the People and Place Programme and the Bus Infrastructure Fund. Through the Transport (Scotland) Act 2019, we have given local authorities powers on partnership working, franchising and to run their own bus services. We want all local transport authorities to be able to improve all of the bus services within their areas.

AI has a huge potential to help deliver better and more efficient public services and work is on-going across the Scottish Government to make best use of the opportunities AI presents.

At the heart of good AI is good data. As part of the Open Government Action Plan work is already underway to share the data required to deliver more joined up and efficient public services. Modelling on public transport, climate change and government expenditure is already delivering results. Our Data Maturity Programme and Communities of Practice are ensuring that public sector organisations have the capabilities to make best use of data, along with our technical solutions for data cataloguing and secure data sharing.

Along side work on good data management, we are also making use of the CivTech challenge process to deliver innovative and ground breaking technical solutions to real world public service challenges. The current challenge round, CivTech 10, focuses on AI, reflecting its importance across multiple sectors, including government.

Current challenges include work to improve situational awareness for emergency responders, and how we can better support and encourage public participation in decision-making. These challenges also help us meet our commitment to ensuring that a large part of our technical spend goes to small, innovative businesses, making the most of Scotland’s natural desire to innovate and improve.

Out Intelligent Automation team is also making use of AI in a number of cross Scotland projects, all designed to identify areas where a Once for Scotland approach to system design can reduce the admin burden across the public sector. Reducing costs and increasing efficiency are key drivers behind our increasing use of AI. Machine Learning has been integrated into invoice processing procedures, application processing for child and disability payments and in document redaction.

We continue to engage with the UK Government around the development and introduction of regulation around the use of AI. We are very keen to see regulation which protects our citizens and their data, but which at the same time creates an environment where innovation can flourish. We want Scotland to continue to be regarded as an attractive place for businesses to invest, and where our workforce can benefit from the increased opportunities new technology can offer.

Scotland's current and future technology-enabled businesses depend on a strong and growing supply of people equipped with the appropriate skills for careers in AI.

AI skills needs are diverse and, beyond the more obvious Science and Engineering specialisms, include non tech skills from the humanities and also more foundational tech skills (which apply to careers outside AI).

Among the more foundational tech skills, highlighted as a key theme in the Scottish Tech Ecosystem Review (STER), we are addressing provision of tech skills through the teacher-led body – Scottish Teachers Advancing Computing Science. STACS runs extra-curricular activities, promotes computing science as a valued career option and provides a resource centre allowing teachers to enhance their learning support for young people.

Widening access to careers in AI through upskilling is also key for building an inclusive and future-ready workforce. Skills programmes which support widening access are being delivered by the AI Alliance through our free national AI literacy programme and our AI Playbook which provides AI upskilling for SMEs and businesses.

Scottish ministers have been consistently clear about the devastating consequences that the UK Government’s approach to migration has had on Scotland’s education sector and our economy to date. International students, academics and research staff in our world-class universities make a vital contribution to Scotland's prosperity.

We need meaningful engagement with the UK Government on migration and we welcome further clarity on the UK Government’s approach, aligning migration policy with skills policy and look forward to more detail on the anticipated role of the Devolved Governments in this approach.

Scottish Government works closely with the AI industry to ensure its policies are pro-innovation and meet the needs of businesses. Industry was a key partner in developing Scotland's 2021 Strategy, and our recently launched governance group includes senior business leaders from the AI start-up and business community.

As AI regulation is reserved to UK Government we continue to engage with its officials to advocate that their approach to AI regulation considers the interests of the citizens and businesses of Scotland.

Techscaler, our national support programme for start-ups has been actively engaged with the AI industry since its inception in 2022. Over the past two years, Techscaler has provided essential resources to numerous AI-focused start-ups helping them thrive. Techscaler holds no formal engagement with the AI Industry on regulation but recognises the importance of AI for new and upcoming start-ups, and therefore is incorporating AI into their programme and education courses in 2025.

As part of the independent review into AI, which I commissioned and which was published last year, engagement took place with the AI industry on investment. Officials regularly engage with investors on AI, however this is not specific to discussing the impact of regulation. However, we have been continuously engaging with the UK Government to advocate that their approach to the regulation of AI considers the interests of the citizens and businesses of Scotland.

Soon, Scottish Enterprise will publish analysis which assesses the economic opportunities for AI in Scotland including Scotland’s AI strengths as well as how Scotland’s AI ecosystem compares to other countries. Scottish Government also regularly measures and assesses business activity and the use of AI amongst businesses through the Scottish Government BICS survey.

To ensure that Scotland competes globally in AI innovation, The Scottish Government is working with our enterprise agencies to promote investment and growth for Scotland’s AI ecosystem. Our agencies and partners are working to support AI companies at all stages of growth and to facilitate collaboration between AI companies, academic institutions and other partners for knowledge exchange and innovation. We are working closely with the Data Lab and the National Robotarium, to maximise the impact of our programmes and help the AI sector to flourish. We also support economic opportunities for AI through the Scottish AI Alliance, which is the delivery body for our AI strategy.

The Scottish Government is committed to supporting the development of digital skills across the public sector, with the Scottish Digital Academy serving as the centre of excellence for digital capability. While there have been no specific funding allocations solely for AI skills training, the Academy is actively building on existing capability and provision, including through the Digital, Data and Technology (DDaT) Profession and strategic partnerships with organisations such as The Data Lab and the Scottish AI Alliance.

Rather than duplicating effort, the Scottish Government takes a collaborative approach, sharing resources where appropriate with the UK Government Digital Service and engaging through the national Digital Capability Advisory Group to identify and address digital skills gaps across the public sector. This ensures a more strategic, joined-up response to emerging technologies like AI, while leveraging existing investment and expertise.