The Land Reform Review Group’s public consultation closed in February this year, and the resulting proposals have now been crystallised in to the Land Reform Bill which was published in The Scottish Parliament on 23rd June 2015.
The Bill was a punctuation point in Scottish history, and a starting point for further reforms. It establishes a Land Commission whose remit is to deliver an ambitious reform agenda. Its aim is the redistribution of land and property to achieve a 'fairer society' and the Bill is the start of that journey.
The provisions within the Bill that seek to establish an ‘Absolute Right to buy for Sustainable Development for Community Bodies’ are a material change to property owning rights that have existed in the UK for many generations. Whilst the headlines have focused on the impact on rural land, the reality is that these provisions apply to all types of Scottish land and property, both urban and rural, applying equally to brownfield land in inner cities and remote heather hillsides.
The Scottish land and property sector has a fundamental role to play in the future health of the economy. In the majority of cases landowners ensure their land and property works hard for the benefit of their communities. However, even the most responsible will be rightly concerned.
The wording of the Bill has been vague on definition in some areas; for example, what constitutes ‘sustainable development’ is unclear. This would appear to be a moveable feast over time, and such ambiguity is likely to be an obstacle to long term investment in the rural economy by landowners who will be uncertain as to whether their plans will be deemed ‘sustainable’. It is also difficult to deliver effective legislation without clear definitions.
It is regrettable that the Bill is drafted in such a way that major legislation, relating to let agricultural holdings, will not be fully examined in Parliament, with major policy objectives being dealt with by subsequent regulations rather than primary legislation. This makes it very difficult to comment effectively on the bill and will mean that the consultation process will be significantly muted. The Bill mentions the introduction of subsequent regulations 40 times.
Some will argue that the Bill’s reintroduction of Sporting Rates will have a negative impact on fragile rural economies, many of which depend on sporting enterprises. Indeed, the rural sector as a whole is already economically fragile and has little capacity for an increased tax burden.
Historically, the SNP has been a party of the centre ground, and has generally commanded a lot of rural support. With its recent success in the Westminster election, it will be interesting to see in which direction it heads, and whether radical reform remains top of the agenda.
The party has previously demonstrated an understanding of the economics of rural Scotland and the role landowners play in providing local employment and investment in rural areas. However, there is a real danger that policy is hijacked amid the political noise, rather than being based on sound economic principles.
Some of the land reform proposals are in direct conflict with the Scottish Government’s own plans for agricultural tenancy reform. In its report published last June, the Agricultural Holdings Legislations Review Group ruled out an absolute right to buy, but recommended some fiscal incentives to encourage landowners to let out land. These fiscal incentives are on a direct collision course with the Land Reform agenda.
In any event, Land Reform will remain a political football and the continued uncertainty could have a negative impact on investment in the rural economy, which will in turn have a negative impact on rural communities.
The Bill has now been introduced to the Scottish Parliament and views will now be sought on the proposed legislation. The drafting of the Bill is hard to follow as it contains a series of amendments to other primary legislation. This means that it will take some time to fully consider the 104 sections.
We will be continuing to analyse the detail of the Bill and offering further objective advice in due course. However, the Bill can be accessed here; Explanatory Notes can be accessed here and the Policy Memorandum can be accessed here. If you have particular concerns about how the detail of the Bill may affect your land or property, whether rural or urban, please do not hesitate to get in touch.
