On 5 May 2011 Scotland turned yellow by electing a SNP Government with an overall majority in a voting system designed to ensure that no single party would ever do that again. In its previous term, the SNP was considered to be good for rural interests. So farmers and landowners are probably heaving a sigh of relief. But what can we expect over the next five years? Some things we know, others can be predicted.

The SNP sees farming as important enough to have merited a special Manifesto. This contains 25 pledges, mostly policy statements on practical matters including ensuring support for active Scottish farmers in CAP reform, maximising Scotland’s share of Pillar 1 and 2 funding, streaming of SRDP to address the needs of Scottish farmers, strengthening the power of food producers in the supply chain and championing the introduction of country of origin labelling at a European level. The fact that a lot of these require co-operation at an EU level demonstrates just how much of the policies applying to rural Scotland operate throughout the European Union, in which The First Minister is demanding a stronger voice.

The Manifesto includes a pledge to support the role of tenant farmers and new entrants, the latter by establishing a new entrants advisory panel, encouraging succession and letting of land to new entrants, demanding that CAP reform delivers immediate equality of access to new entrants and working with Westminster to develop fiscal measures to encourage them. Also, the Government is committed to legislate for the changes to the Agricultural Holdings (Scotland) Acts required to complete the package agreed by the Scottish Tenant Farming Forum (the first tranche of which was contained in the Public Services Reform (Agricultural Holdings) (Scotland) Order 2011).

Consultation on the draft Agricultural Holdings (Amendment) Bill closes on 30 June. Once enacted it will extend the definition of “near relative” (in the context of a section 25 Notice to Quit) to include a grandchild, prohibit “upwards only” or “Landlord only” rent reviews in new Limited Duration Tenancies and provide that changes in the rate of VAT are not variations of rent which trigger a new 3 years rent review cycle.

Other proposals in the Farming Manifesto which may lead to legislation or regulation include:-

• Encouraging Westminster to legislate for a supermarket adjudicator
• Supporting integrated land use
• Simplifying the planning process to develop an agri-renewables strategy
• Creating a Scottish Animal Health Strategy
• Making it easier for successors to build a house on the farm.

Perhaps the most welcome pledge of all to farmers is to help free up their time for farming by accelerating the SEARs initiative and further reducing on-farm inspections and bureaucracy by setting up a joint industry/agency working group – i.e. to reduce red tape.

On a policy front there is a commitment in the main manifesto to introduce national guidelines on delivery of rural education. Alongside that is a commitment to the roll-out of superfast broadband in rural Scotland, an expansion of 3G coverage and a statement that rural Scotland must benefit from and participate fully in 4G services. It remains to be seen how this will impact on existing telecoms mast leases. Renegotiation of their terms may be required to realise these aspirations.

There is also a commitment to introduce Zero Waste legislation during 2011. The manifesto pledges a total ban on organic waste going to landfills by 2017, a maximum 5% of waste going to landfill and 70% target for recycling by 2025.

There is, of course, legislation which, though passed in the previous Parliament, has still to be implemented, including the Historic Environment, Reservoirs, the Wildlife and Natural Environment and parts of the Crofting Reform (Scotland) Acts.

Furthermore, the new Government is pledged periodically to review recent legislation more directly affecting rural law. During the lifetime of this Parliament, Statutes which are to be reviewed include:-

• The Land Reform (Scotland) Act 2003 through a new Land Reform Review Group which will presumably build upon the proposals made by the Centre for Mountain Studies in its 2010 Post Legislative Scrutiny Report to encourage greater use of access rights and to beef up Community and Crofting Communities Rights to Buy.
• The Agricultural Holdings (Scotland) Act 2003 as amended – the effectiveness of the legislation is to be reviewed within 18 months.
• The Climate Change (Scotland) Act 2009 – the Manifesto pledges to increase the Renewables Target to 100% by 2020.
• The Wildlife and Natural Environment (Scotland) Act 2011 – in particular measures concerning snaring (by 30 December 2016) and wildlife crime (on which an annual report is to be laid before the Scottish Parliament).

And finally, it is reasonable to assume that the Long Leases (Scotland) Bill, which was timed out of the last Parliament, will be re-introduced.

Prepare for another busy 5 years!

Further Information

For further information please contact Douglas Reid, John Mitchell or your usual contact at Anderson Strathern.

This bulletin is for general information only and does not constitute legal, investment or other professional advice. Please contact us should you require advice on any particular legal issue. Anderson Strathern LLP accepts no responsibility for any loss that may arise if reliance is placed on any information or opinions expressed in this bulletin.