Fraser of Allander: Optimism fades as economists downgrade growth forecasts for Scottish economy

The outlook for the Scottish and UK economies has weakened, with growth now expected to remain sluggish through the rest of 2025.

In its latest quarterly Economic Commentary, the Institute has downgraded its forecasts for Scottish economic growth to 0.8% in 2025 and 1% in 2026.

This comes despite more upbeat projections from both the Scottish Fiscal Commission (SFC) and the Office for Budget Responsibility (OBR), which have recently upgraded their expectations for 2026 whilst similarly revising down their GDP forecasts for 2025.

Economic growth is now slowing compared to the start of the year and inflation has also edged up to 3.4%, after staying below 3% throughout 2024.

The business environment is also showing signs of strain, with companies reporting cutting back on activities in the first quarter compared to last year, plagued by rises in National Insurance Contributions, which took effect in April, alongside uncertainty surrounding President Trump’s trade tariffs. Indeed, pay growth and employee numbers are down, signalling potential weaknesses in the labour market.

The current state of the economy was not unexpected: Institute Director Professor Mairi Spowage warned of turbulent and uncertain conditions which could last throughout the year in the previous commentary.

Professor Spowage said: “After a strong start to the year, the Scottish economy has faltered in March and April and is essentially the same size in real terms as it was six months ago.

“Unfortunately, the wider business environment and global events are still taking a toll on businesses and consumers, which is having a dampening effect on spending and business investment.”

In addition to the latest economic analysis, the commentary provides an overview of Universal Credit and Legacy Benefits in Scotland, a key element of the nation’s social security system, and summarises key takeaways from June’s spending review and medium-term financial strategy.

Dr Joao Sousa, Deputy Director of the Institute, said: “The fiscal announcements by both governments suggest that there are significant economic challenges in the years and months to come for the UK and Scottish Governments.

“Particularly from 2027-28 onwards, the choices of Government look to become more difficult. Of course, this is the role of the Government in power: but the difficulties of the UK Government this week show that events can quickly derail its plans.”

Read more here.

The Scottish Conservatives reckon they know where the problem lies …

The Fraser of Allander Institute has downgraded Scotland’s growth forecast.

The SNP’s anti-business policies and high-tax agenda are having a detrimental impact on the economy.

Views sought on proposals for protecting Scotland’s environment

Draft plan to tackle nature loss, climate change and pollution

Members of the public are being asked to have their say on proposals aimed at boosting the health, prosperity and wellbeing of communities by improving Scotland’s environment.

The draft Environment Strategy sets out the opportunities for strengthening Scotland’s economy and improving people’s lives as a result of restoring and regenerating biodiversity, cutting levels of pollution and waste, supporting national net zero targets and improving Scotland’s environmental impact on countries across the world.

It includes key government actions which aim to support green jobs and industries, tackle poverty and promote social justice including:

  • the transition to a circular economy through the reuse and repurposing of materials
  • increasing renewable energy generation in Scotland and supporting industrial decarbonisation with independent scenarios from Ernst and Young (EY), showing that with the right support, Scotland’s low carbon and renewable energy sector could support nearly 80,000 jobs by 2050
  • projects to restore nature – including those supported through the Nature Restoration Fund – which are also improving people’s physical and mental wellbeing by providing greater access to nature

Cabinet Secretary for Climate Action and Energy Gillian Martin said: “This draft Environment Strategy sets out ways in which Government action will help tackle the nature crisis, as well as reduce pollution and support our net zero targets.

“These issues are interlinked, and by tackling them together we can protect our planet in ways that improve people’s health and wellbeing, reduce inequalities, and create new opportunities for business and investment.

“We have already made significant progress in improving Scotland’s environment. We have cut pollution levels by banning a number of the most problematic single-use plastic products and introduced Low Emission Zones.

“Scotland’s energy grid is also greener, thanks to the increase in the amount of renewable energy we now generate, we are more than halfway to reaching net zero by 2045, and our forthcoming Natural Environment Bill will introduce new statutory targets for restoring nature. 

“However there is still much more we can do – and it is vital we tackle these global crises in ways that create wider benefits for Scotland – supporting green jobs and industries, improving people’s health, tackling poverty and promoting social justice.

“I urge everyone with an interest to have their say on the proposals.” 

Deputy First Minister and Cabinet Secretary for Economy and Gaelic Kate Forbes said: “This draft Strategy shows how we can achieve both our environmental and our economic ambitions for Scotland, highlighting the business and investment opportunities that will flow as we move to a net zero, nature positive future.”

Swinney pays tribute to Scottish recipients of The Elizabeth Emblem

First Minister marks lives given in public service

First Minister John Swinney has paid tribute to the eight Scottish recipients of The Elizabeth Emblem.

The emblem is awarded posthumously to family members of those who died in public service. It is the civilian equivalent of the Elizabeth Cross, which recognises members of the UK Armed Forces who died in action or a terrorist attack.

The First Minister said: “I warmly welcome the awarding of The Elizabeth Emblem to these individuals and their families.

“This recognition enables us to remember their sacrifice and their lives dedicated to public service. They made Scotland a better place for us all and we continue to honour their memory.”

The Secretary of State for Scotland, Ian Murray said: “I pay tribute to all of those Scots who have been recognised today. Every one of these brave public servants gave their life to protect others. They are people who stepped forward when most of us would step back, and they paid the ultimate price.

“I am particularly pleased that Dunblane teacher Gwen Mayor has been recognised. No-one will ever forget the horror of the shooting at Dunblane Primary School in 1996, when Mrs Mayor was killed trying to protect her pupils.

“I hope that the families of all those recognised will take some comfort in knowing that their loved ones, and their service, has not been forgotten.” 

The family of Dunblane Primary School teacher Gwen Mayor including her husband Rodney Mayor said: “As a family we are extremely proud and honoured to be receiving this award on behalf of Gwen. We always believed her actions that day deserved more recognition.

“You would have to have known Gwen to know that she would have done whatever trying to protect the children in her care. She paid the ultimate price for that commitment. Finally we now feel that she has been honoured for what happened that day.”

The full list of Scottish recipients of The Elizabeth Emblem are:

  • Joseph Stewart Drake, a Constable with Stirling and Clackmannan Constabulary. He died on 11 August 1967 when a stolen lorry intentionally struck his car at Dennyloanhead as he tried to intercept it. 
  • Gwen Mayor, Primary 1 teacher at Dunblane Primary School died on 13 March 1996 alongside 15 of her pupils when a gunman entered the school.
  • Rodney (Rod) Moore, a retired NHS paramedic from Falkirk with 40 years’ service, rejoined the Scottish Ambulance Service to support its Covid-19 response and died on 21 November 2020 having contracted coronavirus.
  • Roderick Nicolson, a Scottish Fire & Rescue Service firefighter died at Perth Harbour on 4 December 1995. He was attempting to rescue workers who became trapped in a silo filled with five tonnes of sodium carbonate ash.
  • Richard Paul North, a Constable with Tayside Police died on 17 March 1987. He was on duty driving a marked police patrol car when it collided with another vehicle. The driver of the vehicle was under the influence of drink and drugs.
  • William Oliver of the Glasgow Salvage Corps died at the Cheapside Street whisky bond fire on 28 March 1960. He was instantly killed alongside 18 others when some casks ruptured causing a massive boiling liquid expanding vapour explosion.
  • Ewan Williamson, a Scottish Fire & Rescue Service firefighter with Lothian and Borders Fire and Rescue Service. He became trapped in a fire at the Balmoral Bar public house in Edinburgh and died on 12 July 2009.
  • Alastair Soutar, of HM Customs and Excise died of his injuries on 29 July 1996 after he was crushed between ‘The Sentinel’ HM Customs and Excise vessel and the ‘Ocean Jubilee’ smugglers vessel. Mr Soutar, from Dundee, was participating in Operation Balvenie to apprehend drug smugglers.

Scottish Government: Bringing more empty homes back into use

More support for local authorities

Additional empty homes officers are being recruited to bring more privately owned houses back into use.

The new posts are being supported as part of a £2 million investment through the Scottish Empty Homes Partnership in 2025-26 which will see staff take a more proactive and targeted approach to tackling local housing issues.

Funding will also help to train and induct new staff, grow services and ensure empty homes are utilised, including by increasing support for local authorities to make compulsory purchase orders.

Housing Secretary Màiri McAllan said: “Bringing homes back into use is a vital part of our plan to tackle the housing emergency. When too many families are struggling to find somewhere to live, it is unacceptable to me that that houses should lie empty.

“It’s important to help councils step up measures to turn privately-owned empty properties into much-needed homes and it’s encouraging that local authorities have already come forward to make use of this support.

“As the First Minister has set out, this government is determined to eradicate child poverty – and tackling the housing emergency by making sure families have access to a home is a crucial part of that.”

Scottish Empty Homes Partnership National Manager Tahmina Nizam said: “Every home matters as we work together to end Scotland’s housing emergency. 

“In councils across the country Empty Homes Officers are delivering results, with over 11,000 homes having brought back into use since 2010. The additional posts supported by this funding will expand on that vital work. 

“New Empty Homes Officers are already in post at City of Edinburgh Council, while recruitment is underway in several other local authorities. 

“Homes weren’t built to sit empty; every empty home has the potential to transform a family or individuals’ life but collectively they have an enormous role to play in reducing housing need and tackling the housing emergency.  

We look forward to welcoming more new Empty Homes Officers as they come into post and supporting their efforts to bring more homes back into use.” 

Spotlight on dangerous and illegal use of off-road bikes across Scotland

The charity Crimestoppers Scotland has launched a new campaign appealing for information about the dangerous and illegal use of off-road motorbikes and other mechanically propelled bikes across Scotland.

There has been rising concerns and reports from communities across Scotland over the illegal use of off-road bikes and other mechanically propelled bikes including mopeds, e-bikes and e-scooters.

Complaints often centre around off-road bikes becoming a threat to the public as the bikes are ridden recklessly in residential areas, town centres, on pavements and in green spaces – with no concern from the riders for their own safety or that of the public.

Crimestoppers spoke to people in Scotland who has been directly affected by dangerous and illegal use of off-road bikes:

  • A Farmer in Dumfries told us his fields had been ripped up overnight, costing thousands in repairs and increased security costs.
  • An elderly lady in Edinburgh almost stepped in front of a bus to prevent a bike on the pavement from crashing into her.
  • In February Whinhill Golf Club in Greenock experienced extensive damage to the greens and fairways.
Angela Parker

Angela Parker, National Manager, Crimestoppers Scotland, said: “We heard from many people who felt scared and threatened by the increased use of illegal off-road bikes. This illegal activity also damages the environment and heritage, taking years to recovers and costing thousands to repair.

“Our campaign aims to support communities in reporting anonymously to our charity and providing information on where people can safely and legally enjoy riding their bike.”

Victims and Community Safety Minister Siobhian Brown, said: “I’m pleased to support this important campaign.

“Using off-road vehicles illegally is dangerous, anti-social and can cause huge disruption to residents in local communities as well as causing damage to parks, playing fields and the natural environment.

Crimestoppers enables individuals to report crime anonymously and these reports help the police to tackle this crime. Together, we can make a real difference.”

Councillor Stephen McCabe, leader of Inverclyde Council, said: These bikes are causing untold damage and misery in our community, damaging public and private property and leaving residents feeling scared and intimidated, which is simply unacceptable.

“Areas like Grieve Road have been particularly affected by the rise in off-road bikes and the course at Whinhill Golf Club, which the council owns, has also been damaged so there is a cost to the taxpayers to repair the fairways and greens, not to mention the inconvenience caused for golfers and staff.

“As with most things, the authorities need the help of the public to tackle this problem by reporting illegal and anti-social activity and Crimestoppers is a way in which people can do that and do it completely anonymously.”

Useful information includes:

  • Who is riding them illegally and what they were wearing?
  • The names of those responsible for putting the public and themselves in danger.
  • Where are they being stored?
  • The exact location, date and time the bike/s were seen?
  • Anything distinctive: colour, make, number plate details.

If you own or ride an off-road bike or other mechanically propelled bike, (that includes e-bikes and e-scooters), you must ensure that you comply with UK law. Our campaign webpage gives useful information on all manner of bikes.

To pass on information about the illegal use of off-road bikes completely anonymously, visit the Crimestoppers website (Crimestoppers-uk.org). You can fill in a safe and secure form or you can call the 24/7 UK-based Contact Centre on 0800 555 111. Young people can also report crime via the charity’s youth service website Fearless.org.

Please note: With Crimestoppers-uk.org and Fearless.org, computer IP addresses are never traced and no-one will ever know you contacted them.

For telephone calls to Crimestoppers via 0800 555 111, there is no caller line display, no 1471 facility and calls have never been traced.

Museum Futures programme launched

£4 million programme to encourage new approaches and collaboration across the museum sector

Museums are being encouraged to sign up for a new partnership programme to strengthen and sustain their role as the stewards of Scotland’s cultural heritage.

Developed in partnership by the Scottish Government, Museums Galleries Scotland and The National Lottery Heritage Fund, the £4 million Museum Futures programme will offer funding and support to transform how museums and galleries operate by enabling them to collaborate and test new ways of working. The funding was announced by First Minister John Swinney ahead of a visit to the Museum of Childhood in Edinburgh.

Museums will be able to access two funding channels – an open fund focused on building leadership capacity and organisational change, and a targeted fund that will support the testing of collaborative and place-based approaches, focused on the needs of communities, as well as organisations with common issues who would benefit from working together.

Beyond financial support, participating museums will also benefit from skills development, professional mentoring and specialist advice delivered by trusted partners across Scotland.

This includes a new Organisational Health Check tool, developed by Museums Galleries Scotland, to help museums identify their strengths, weaknesses, and opportunities and allow them to make informed decisions regarding priorities and funding.

The First Minister said: “Museums are the stewards of our cultural heritage, preserving the objects and artworks that have shaped Scotland, from its earliest beginnings to the latest trends.

“Local museums in particular are responsible for bringing the stories behind their communities to life, and the Museum Futures programme aims to give them a solid foundation to build on by helping organisations innovate, collaborate and adapt.

I know some are already early adopters of new ways of working and this programme will encourage more of that through the sharing of ideas, practical advice and funding to enable them to test new approaches that will stand the test of time.

“This programme and the £4 million funding behind it reflects the Scottish Government’s commitment to ensure our museums flourish, having heard the sector’s voices on the challenges they are currently facing loud and clear.

“I would strongly encourage anyone who might be eligible to consider how they could secure their part of Scotland’s story with this funding and support.”

Lucy Casot, Chief Executive of Museums Galleries Scotland said: “Museum Futures takes a progressive new approach to sector investment and development allowing us to imagine and test what a strong museum sector could look like.

“It provides capacity to explore how the sector can adapt to meet current and future challenges while removing some of the risks of trying something new. It gives museums a chance to plan for long term sustainability instead of just getting through another year.

“Museum Futures recognises the hard journey that our sector has had and seeks to offer a positive way to address barriers and support change.

“This is a momentous opportunity for Scotland’s museums and I would like to thank our partners and sector colleagues who have shaped and will continue to develop this new programme.”

Imaginate Family Day_National Museum of Scotland_24th May 2025

Caroline Clark, The National Lottery Heritage Fund Director for Scotland said: “Since the launch of the Heritage Fund some thirty years ago we have worked closely with Scotland’s museum sector and thanks to National Lottery players we have supported museums of every size and style in every part of the country.

“As the largest funder for the UK’s heritage our knowledge and experience has helped shape the Museum Futures programme. We now look forward to supporting it in delivery and continuing to be a key funder, project partner and supporter for a resilient, creative and collaborative museum sector in Scotland.”  

For more information, see: https://www.museumsgalleriesscotland.org.uk/museum-futures/

£22 million to tackle waiting times in NHS Lothian

Additional funding to build on progress in clearing longest waits

Health Secretary Neil Gray has welcomed progress in reducing waiting lists at NHS Lothian as he confirmed the health board will be allocated an additional £22 million for the year ahead – as part of a £106 million investment across the NHS to tackle the longest waits.

Latest figures show a 14% decrease last year in inpatient/daycase waits for all specialties at NHS Lothian – down from 26,462 at 31 March 2024 to 22,762 at 31 March 2025.

The reduction in ongoing waits was driven by reductions in:

  • General surgery -19.6%
  • Gynaecology -20.6%
  • Orthopaedics -17.9%
  • Urology -27.9%

On a visit to the Day Surgery Unit at the Edinburgh Royal Infirmary, the Health Secretary met with staff and patients and saw first-hand the positive impact Scottish Government investment is having on waits. The Day Surgery Unit carries out 30 – 40 scheduled procedures every day – this helps allow patients to leave for home from 2pm onwards with a focus on same day discharge.

A huge variety of procedures are performed with patients from a mix of five specialties, including gynaecology, general surgery, vascular, neurosurgery and orthopaedics. Last year, around 4,500 procedures were carried out by the Unit.

Mr Gray said: “This government is focussed on taking the action needed to cut waiting lists and we are determined to make it easier, faster and fairer for patients to get access to the treatment they need.

“I was pleased to meet the team at the Royal Infirmary’s Day Surgery Unit who are carrying out fantastic work to help target long waits and making significant progress.  We want to build on this success and drive that improvement across Scotland – our additional investment of £106 million support this work across all health boards.

“Figures published today show monthly A&E performance at its best since July 2023 and delayed discharge at its lowest since October 2023. Our plan to improve our NHS is working and we will build on this progress by increasing capacity and investing to tackle the longest waits to ensure patients get faster access to care.”

Will new Bill help Scottish Government keep The Promise?

Proposed changes to the services and support provided to people who are in, or have experience of, the children’s care system are set to be scrutinised in Holyrood.

MSPs from the Parliament’s Education, Children and Young People Committee have launched a call for views on the Scottish Government’s Children (Care, Care Experience and Services Planning) (Scotland) Bill.

The Bill forms part of the Scottish Government’s response to the recommendations made in the Independent Care Review known as “The Promise”.

Proposed changes include an expansion in the right to apply for aftercare, wider access to advocacy services for care-experienced people and the creation of a national register of foster carers.

The Bill also proposes changes designed to avoid people or organisations making excessive profits from the care of children. It would set limits on the profits that can be made from children’s residential care and require fostering services to register as charities.

Changes to the Children’s Hearing System, which the Scottish Government describes as offering legal protections to children who are in need or at risk, are also proposed in the Bill. In a move designed to strengthen accountability, the Bill also sets out that, in future, all Integration Joint Boards will have responsibility for children’s services planning, alongside local authorities and health boards.

The Committee now wants to hear from care-experienced people, parents, carers, foster carers, kinship carers and adoptive parents, and others, to share their views on the proposals.

The call for views is open now and will close to responses on 15 August 2025. The Committee plans to hold evidence sessions with stakeholders in autumn.

Douglas Ross MSP, Convener of the Education, Children and Young People Committee, said: “In 2020 the Independent Care Review set out a series of promises to Scotland’s care experienced children and young people.

“We have kept a constant eye on progress towards meeting those promises and it is clear, from hearing from care experienced young people and those supporting them, that there are many challenges still to overcome.

“The Committee will look closely at this Bill, listen to the views of everyone affected by it, and assess whether it will bring about the changes needed to ensure that all care experienced children and young people can enjoy the childhood they deserve.

“If you are care experienced, or work to support care experienced children and young people, please share your views on the proposals in this Bill.”

Investing in entrepreneurship

£800,000 to support business creation and growth

A pipeline of programmes to build entrepreneurial ambition, capability and networks for Scotland’s current and future entrepreneurs will be delivered with investment from the Scottish Government’s Ecosystem Fund.

A total of 28 projects will deliver initiatives in 2025/26. They range from inspiring school pupils to helping businesses realise international growth.

They include:

  • Women’s Enterprise Scotland, offering a 10-week programme for women entrepreneurs to address women’s constrained access to finance.
  • Galashiels Soup, which will offer community micro-grant events in Scottish Borders
  • SGDA Games Accelerator, Scotland’s first games-specific accelerator to address the unique challenges faced by games companies in product development, financing and marketing.

A new, fully digital application process used by the Fund’s delivery partner, Inspirent, this year means that awards have been made just a few weeks after more than 300 applications were received, meaning programmes can be delivered sooner and for longer during the financial year.

Nearly £100,000 of additional funding has been awarded to projects in response to demand to the Fund.

Deputy First Minister Kate Forbes said: “Scotland has always been a nation of innovators and these projects will build the infrastructure, networks and support systems that our entrepreneurs need to thrive, creating lasting change that goes far beyond individual businesses.

“The Ecosystem Fund sits at the heart of the Scottish Government’s £30 million record investment in entrepreneurship – the biggest commitment we’ve ever made to establishing Scotland as one of Europe’s leading start-up economies.

“The exceptional response to this year’s Fund demonstrates the vibrant entrepreneurial energy that exists across Scotland. I am proud not just to be supporting projects, but investing in the entrepreneurial talent that is the backbone of our economy.”

Chief Entrepreneur Ana Stewart said: “It’s extremely encouraging to see the quality and diversity of applications received. What’s particularly reassuring is to see the new digitised process working effectively, streamlining and achieving a shorter and simpler process for applicants ensuring funds reach them much earlier. This is the fastest turnaround the Scottish Government has achieved to date, reflecting a more responsive, agile approach.

“The successful projects will deliver targeted support that founders need in the earliest stages of their business. From accessible business training and mentorship programmes, to networks that connect entrepreneurs across Scotland’s regions and sectors.

“Moving forward, the commitment is to work more closely with partners across our entrepreneurial ecosystem to ensure public sector support delivers maximum impact for Scottish founders.” 

More details about the Ecosystem Fund can be found at: www.ecosystemfund.co.uk

Projects awarded:

  • Galashiels Soup – Scottish Borders – £2,063.00
  • Entrepreneurial Scotland – Glasgow – Discovery Day: Unlocking Scotland’s Entrepreneurial Potential – £4,500.00
  • STARTUP GRIND Scotland Aberdeen Chapter – Aberdeen – StartUp North: AI Hackathons for Scotland’s Hidden Innovators -£8,500.00
  • (START) The High School of Glasgow – Edinburgh and Aberdeen – START Roadshow – £9,200.00
  • Creator Campus – Hybrid – Student Startup Matchmaking Fair – £9,500.00
  • The Isle of Arran Candle Company Ltd – Arran – Arran Design Collective – £9,500.00
  • University of Strathclyde – Glasgow – From Sanctuary to Start up: supporting Refugees, Asylum Seekers and New Scots in navigating and thriving in Scotland’s startup ecosystem – £9,750.00
  • Scotpreneur Ltd – Online – The Entrepreneur’s A to Z: An Audio Guide for the Blind and Visually Impaired – £14,250.00
  • Dundee Founders Collective – Dundee – Dundee Founders Collective – £16,285.00
  • Scottish Games Network Ltd. – Glasgow – Hello World! Scottish Students Startup Summit – £23,800.00
  • GrowBiz Scotland – Hybrid – Supporting Older Entrepreneurs – £32,500.00
  • Opportunity North East – Aberdeen – Finance for Founders – £32,500.00
  • Challenges Catalyst Ltd – Nationwide – Unlocking Scotland’s Earlier-Stage Research-to-Venture Pipeline – £33,500.00
  • Dechomai – Glasgow – IGNITE SCOTLAND: Building Inclusive Enterprise Hubs & Learning Tools for Ecosystem Growth – £36,000.00
  • SGDA Community Interest Company – Dundee, Edinburgh, Glasgow – Scottish Game Developers Accelerator – £38,000.00
  • Impact Rise Ventures Limited – International – San Francisco Tech Week 2025 – £38,000.00
  • Thistle Labs Ltd – Hybrid – GenAI for Entrepreneurs – £38,814.00
  • James Hutton Limited – Hybrid – Innovation Campus & Incubator for Clima-Tech & Agri-Tech – £38,881.00
  • The Rebel School/Ziyx Scotland – South Lanarkshire and Stirling – Rebel Business School – £39,000.00
  • Ecosystem Builders Network – Edinburgh/ Glasgow – Capital Catalyst: Investment Readiness – £39,300.00
  • Egg Scotland Ltd – Hybrid – egg Scotland Community Amplification – £40,000.00
  • Boutique Innovation Ltd – Hybrid – Scotcol Accelerator – £40,000.00
  • Filament Pd Ltd – Glasgow – Future Founders – £40,000.00
  • Royal Conservatoire of Scotland – Glasgow – Split Screen – £40,000.00
  • Glasgow Clyde College – Glasgow – Launch Pad   – £40,000.00
  • Women’s Enterprise Scotland – Online – Funding Options for Women Entrepreneurs in Scotland – £40,000.00
  • Turing Fest – International – Turing Fest Founders Dinners Programme         – £40,000.00
  • STAC – Nationwide – STAC Source: Big business innovation via Startup Scouting – £40,000.00.

Broadband target exceeded

R100 delivers more than 27,000 faster, ultra-reliable connections in a year

The Scottish Government has surpassed it’s commitment to deliver gigabit-capable broadband connections to 20,000 homes and businesses last year.

A record 27,000 premises were equipped with faster broadband in 2024-25 through the Scottish Government’s Reaching 100% (R100) programme, exceeding a Programme for Government commitment by more than a third.  

 Connections have been made right across the country, from the Killantringan Lighthouse in Dumfries and Galloway to Stornoway in the Western Isles and Baltasound on Shetland.  

 The R100 contracts, being delivered by Openreach, have now enabled more than 80,000 faster broadband connections across the country, with 80% of all R100 contract build to take place in rural areas.  

Business Minister Richard Lochhead visited Loch Katrine in the Trossachs to hear how access to faster broadband speeds is helping transform opportunities for local businesses.  

He said:  “Fast, reliable broadband is a fundamental building block for economic growth. The Scottish Government’s R100 programme is one of the most ambitious and complex digital infrastructure programmes in Europe, rolling out connections in some of the most challenging locations in the country to help businesses and communities prosper.

“Despite telecommunications being reserved to the UK Government, our commitment to the R100 programme illustrates this government’s commitment to delivering the digital connectivity people and businesses need to succeed.

 “Exceeding our 2024-25 delivery target was helped by record Scottish Government funding and an ongoing partnership with Openreach maximising the opportunities to deliver fast broadband to even more homes and businesses.”  

CEO and Lead Trustee of the Steamship Sir Walter Scott Trust, James Fraser said:  ”The impact of the introduction of fibre cable connections at Loch Katrine has been transformative for many aspects of our core business and our tenants. With an increasing trend to digital bookings for cruises, eco lodges, cycle hire and meals out, having high speed digital connections is critical to the success of our business and other businesses on the lochside.  

“Previously our digital speeds were very poor leading to customer dissatisfaction, loss of bookings and customer complaints, particularly from guests staying overnight in our eco lodges or in campervans in our car parks. With the higher speeds now available there has been a marked improvement in digital services with increased customer satisfaction levels.”  

Openreach Partnership Director for Scotland, Robert Thorburn, said:  ”It’s brilliant to see businesses like the Steamship Sir Walter Scott benefitting from full fibre.

“We’re committed to making sure that the hardest-to-reach homes and businesses in Scotland are connected to the latest generation of broadband technology, giving them access to the same fast, reliable services available in our cities.

“While building new full fibre networks in rural areas throws up many challenges, our engineers have the skills and experience to overcome these and deserve an enormous amount of credit for their work.

“We’re proud of the role we’ve played, working alongside the Scottish Government, in hitting this significant milestone – but we know that our work isn’t done yet, and we’ll continue to connect communities across the country.”  

The commitment to connect over 20,000 premises to gigabit capable broadband in areas of market failure by March 2025, through delivery of three regional, multi-year contracts with Openreach is set out in the Programme for Government 2024-25: Serving Scotland