Insight

Scottish Election 2026: What Lies Ahead for Rural Scotland

13.4.26

Image of Hustings blog

With the Scottish Parliament election set for 7 May 2026, attention is turning to how the next government will balance economic growth, environmental ambition and the practical realities of managing land and rural businesses.

The recent rural hustings hosted by Scottish Land & Estates offered a clear snapshot of the political mood. Senior representatives from across the six political parties came together to debate the future of Scotland’s countryside, with discussion centred on growth, investment and the role of the rural economy in delivering national priorities.

For those investing in land, natural capital and energy infrastructure, the message from the room was clear. Rural Scotland is firmly on the political agenda. The focus now is how policy will shape investment and delivery in the years ahead.

 

A Rural Economy with Momentum, but Growing Pressure

 

Across parties, there was broad recognition that the rural economy remains one of Scotland’s defining strengths. From food production and forestry to renewable energy and tourism, rural industries support employment, economic activity and environmental stewardship across the country.

At the same time, a consistent set of pressures emerged. Business costs, workforce shortages, infrastructure and housing availability were repeatedly identified as barriers to growth. For investors, this has direct consequences. Growth in natural capital and energy projects depends on access to skilled labour, reliable infrastructure and places for people to live.

Without people, projects stall. Without confidence, investment slows.

 

Regulation and Certainty: The Investment Lens

 

A recurring theme from the hustings was the need for clarity and stability in policy. Debate around regulation was robust, particularly in relation to land use, energy and environmental standards. While strong environmental frameworks are widely supported, there was concern about the cumulative effect of regulatory change on business confidence and project delivery.

Investors are not seeking deregulation. They are seeking predictability. Capital flows where policy is clear, consistent and proportionate.

 

Energy and Natural Capital: From Policy to Delivery

 

Energy policy was one of the most contested areas of the debate, reflecting the scale of change underway across Scotland’s rural landscape. Rural landowners and businesses are already central to the delivery of renewable energy, and the sector will continue to play a major role in supporting economic growth and the transition to net zero.

Delivery will depend on practical factors such as grid capacity, planning timelines and coordination across agencies. At the same time, markets for carbon, biodiversity and ecosystem services are developing at pace, placing Scotland in a strong position to lead in emerging environmental markets.

 

Forestry and Land Use: A Practical Opportunity

 

Discussion also turned to forestry and domestic timber supply. Scotland imports a large share of the timber it uses, highlighting the potential to strengthen domestic production and support rural supply chains. Expanding woodland creation and timber processing would also contribute to housing delivery and climate targets.

For investors, forestry is increasingly viewed as a long-term asset that can generate income while supporting environmental objectives. The challenge lies in coordination, supported by clear incentives and stable funding frameworks.

 

Collaboration Will Define the Next Parliament

 

A clear message across the debate was the need for collaboration. Government, industry and communities all have a role to play in shaping the future of rural Scotland.

Large-scale investment in renewable energy, natural capital and rural infrastructure depends on long-term partnerships between landowners, investors, developers and public bodies, built on trust and shared objectives.

The forthcoming election will set the direction of travel for Scotland’s rural economy over the next decade. Scotland offers strong natural assets, skilled land managers and growing demand for investment in energy, land and environmental markets. Rural land will play a central role in meeting national ambitions for economic growth, energy security and climate action.

Progress, however, will depend on the policy environment. Clear regulation, consistent decision-making and effective collaboration will provide the confidence investors need to commit capital and deliver projects at scale.

Get in touch with the team

602119

Rosanna MacKessack-Leitch

Partner, Rural

Rosanna believes that building a trusted working partnership with clients is vital for success.

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Image of Ralph Peters

Ralph Peters

Head of Rural, Scotland

A firm but fair approach has earned Ralph the enviable reputation as the ‘go to’ expert on rural property issues.

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