Scottish Budget 2026: Key Takeaways for Landowners and Rural Businesses

The Scottish Government’s Budget for 2026-27 has now been published. While overall spending has increased, the Budget raises several concerns for landowners, estate businesses and rural enterprises across Scotland.

Below are the key points you need to be aware of.
 

Rural affairs budget cut

Despite rising expectations on rural Scotland, rural affairs is the only major budget area facing a real-terms cut of around 3.1%. This comes at a time when estates and rural businesses are being asked to deliver more on food production, housing, climate action, biodiversity and economic growth.
 

Non-domestic rates remain a major concern

The recent non-domestic rates revaluation continues to create uncertainty for rural businesses. While limited reliefs and the Small Business Bonus Scheme remain in place, these measures do not fix a system that many rural enterprises find unpredictable and unfair.

Some estates will still face increased rates bills, while others risk losing relief altogether. This uncertainty discourages investment and diversification.
 

Lack of long-term clarity for agriculture

Pillar 1 payments will continue for the coming year, but there is little clarity on funding beyond 2026. This makes long-term planning and investment difficult for farms and estates.

The £23 million announced for agricultural transformation largely restores previously removed funding rather than introducing new support, and its effectiveness will depend on how it is targeted.
 

Housing delivery in rural areas still unclear

Although housing investment has increased overall, there is limited detail on how much will reach rural and island communities. A lack of housing remains one of the biggest barriers to sustaining rural populations, attracting staff and supporting estate businesses.
 

Climate and nature funding: positive signals, ongoing challenges

Increased funding for woodland creation, peatland restoration and a £26 million uplift to the Nature Restoration Fund is welcome. However, rural businesses are still expected to deliver ambitious outcomes without the certainty of long-term funding.
 

Mansion tax proposals

The Budget outlines plans for a Scottish version of a “mansion tax”, introducing two new council tax bands for properties valued over £1 million. While business-held dwellings may be exempt, details are still emerging.
 

What this means for estates and landowners

For landowners and rural businesses, the priorities remain clear:

• A non-domestic rates system that works for rural enterprise

• Long-term, stable funding for agriculture and rural affairs

• Housing investment that supports rural communities

• Climate and nature funding aligned with delivery expectations
   

At The Estates Office, we will continue to support our clients in understanding these changes and planning confidently for the future.

If you would like to discuss how the Scottish Budget may affect your estate or rural business, please get in touch with our team.

The Estates Office
The Old Bank, 6 Argyll Square, Oban
01631 705 480 | [email protected]