8. To ask the Scottish Government how its fiscal policies support the development and growth of the rural economy. (S6O-02973)

Scotland’s land-based and marine sectors are vital to our economy, and that is why the Scottish budget has allocated more than £700 million to agricultural support and related services, along with £97.9 million across Scottish Forestry and Forestry and Land Scotland and £93 million across Marine Scotland and support for fisheries and aquaculture.

Scotland’s non-domestic rates relief package includes rural rates relief and the United Kingdom’s most generous small business rates relief. The hospitality sector in the islands will get 100 per cent relief for hospitality, capped at £110,000 per ratepayer.

It has to be said that the UK Government has failed to meet previous European Union funding levels, has cut capital funding and has not provided certainty regarding any post-2025 rural funding.

I thank the cabinet secretary for that answer, but the budget has slashed funding in vitally important portfolios, including support for bus and rail services. In cash terms, the agriculture and forestry budgets have been cut by £32 million and £34 million respectively. It has also been recently reported that no homes have been secured through the rural affordable homes for key workers fund.

Does the cabinet secretary not realise that those decisions are actively undermining the growth and development of rural economies, because the fiscal policies do not make rural Scotland a viable place to live and work?

The UK Government’s real-terms cuts to the Scottish budget have consequences for all parts of our budget. That is the reality of the difficult decisions that we have had to make. A 10 per cent reduction in capital budgets affects infrastructure investment in rural Scotland as well as in urban Scotland, so Tory MSPs cannot pitch up here with their list of asks when their Government has slashed the funding for Scotland’s public services. [

Interruption

.]

The Presiding Officer:

Let us hear the cabinet secretary.

We will continue to invest in Scotland’s rural economy. We have invested and will invest in rural housing, and we will make sure that we work with partners to deliver on the priorities for rural Scotland. However, that is no thanks to the UK Government’s funding settlement.

Brian Whittle is talking about choices. In December last year, a headline in

The Scottish Farmer read:

“Upland farms are facing a cut of 37% in support payments as direct payments are being phased out with new schemes failing to bridge the gap.”

That was in relation to farmers in England and Wales, not Scotland—a UK Government choice. More than half of Scotland’s agricultural land is dedicated to upland sheep farming and mixed beef cattle and sheep farming, and the cabinet secretary, Mairi Gougeon, confirmed in committee today that less favoured area payments will be maintained in the current funding cycle. Does the cabinet secretary agree that the treatment of farmers in England is definitive proof that the development, growth and prosperity of our rural economy is best served by this Scottish National Party-led Government and its commitment to active farming, food production and direct payments—and even more so in an independent Scotland?

Jim Fairlie has utterly exposed the hypocrisy of the Tories in this Parliament and in the UK Government, and their chuntering from a sedentary position shows that he has done so very effectively indeed. I cannot agree with Jim Fairlie more.

As I said in my final point to Brian Whittle, the UK Government has failed to meet previous EU funding levels, despite all the promises that were made during the Brexit debate. The UK Government has cut capital funding and has not provided any certainty whatever around post-2025 rural funding. The Tories should get their act together before coming here and demanding action from this Government. They should be getting on the phone to their own Government colleagues before coming to complain here.

The Presiding Officer:

Before I draw this part of the session to a close, I remind members to reflect on where they are. I may even have witnessed the spectacle of a member who was out of his seat and still commenting on proceedings. That is simply not acceptable. We have a great privilege in representing the people of Scotland in this chamber, and I ask all members to remember that at all times.

Portfolio question time has now concluded.