Stage 1 Report on the Land Reform (Scotland) Bill

Introduced on 13th March 2024, the Land Reform (Scotland) Bill seeks to address issues related to land ownership, community empowerment and sustainable land use in Scotland. As part of the legislative process, the Net Zero, Energy and Transport Committee undertook their Stage 1 scrutiny of the bill, culminating in its report published on 19th March 2025.

Support of the Bill's Core Aims

The Committee expressed its support for the Bill's primary goals of diversifying land ownership, empowering local communities and promoting sustainable land use practices. Recognising Scotland's historical concentration of land ownership, the Committee acknowledged the necessity of legislative measures to foster a more equitable distribution of land resources. Critics of the Bill, such as Scottish Land & Estates, warn the Bill could harm rural economies by disrupting established land management practices and deterring investment when investment in the sector and in particular natural capital regeneration projects will be vital if the country is to reach its net zero target.

Necessity for Clearer Definitions and Practical Frameworks

A significant portion of the Committee's report emphasised the need for clarity within the Bill's provisions. Ambiguities in definitions and the absence of detailed frameworks could hinder the effective implementation of the provisions.

One of the main concerns surrounding the Bill is about the feasibility of enforcing the provisions and their burdensome and bureaucratic nature. The Committee recommended refining the language to ensure that stakeholders, including landowners, community groups and regulatory bodies, have a precise understanding of their roles, responsibilities and rights under the new legislation. For example, the Committee supports the ability of the Scottish Ministers to provide that large landholdings should be sold in lots to increase opportunities to diversify land ownership, however, the basis on which these decisions will be made remains unclear. The Committee also recommends that the "transfer test" be reconsidered to ensure that it is clear that public interest will be at the centre of lotting decisions.

The Land and Communities Commissioner role was another area which was highlighted as requiring some further adjustment by giving the Commissioner the ability to pro-actively investigate breaches as opposed to waiting for instances of an alleged breach to be reported to them.

Enhanced Stakeholder Engagement

The importance of continuous and meaningful engagement with all affected parties was a recurring theme in the Committee's findings. The report highlighted that ongoing consultation with landowners, community organisations, environmental groups and the general public is crucial. Such engagement ensures that the Bill's provisions are both practical and reflective of the diverse perspectives within the Scotland.

One particular area that the Committee suggested should be subject to ongoing monitoring and review is the land size and lotting thresholds. The Committee recommends a reporting requirement on the success of the thresholds so the Parliament and stakeholders alike can be updated on how the provisions are operating. The Committee admits that there has been disagreement within the Committee about the appropriate level of the thresholds and recommends that the Government reviews this ahead of stage 2.

Environmental and Net-Zero Targets

Scotland has set ambitious environmental goals, including achieving net-zero carbon emissions. The Committee recommended that the Bill more explicitly integrates these environmental objectives, ensuring that land reform initiatives contribute positively to sustainability.

The report welcomes the changes proposed in relation to the leasing of land which have the aim of encouraging more people to the sector and allowing them to more fully play a role in tackling the climate crisis. However, they concluded that there was a deep concern that the Bill's current proposals will not go far enough to prevent the decline in the number of agricultural tenancies. Most notably, the Committee recommends that the Scottish Government should reconsider the reform of provisions on resumption and further consider how the sector can encourage the leasing of land for agriculture as this will play a vital role in supporting rural development and delivery on Scotland's goals on sustainability and achieving net zero.

Stakeholders consider the proposed changes to the rules on good husbandry to be a positive change in making a transition to net zero in agriculture easier. There is, however, some concerns about the definition of "sustainable and regenerative agriculture" with many stakeholders feeling that this requires further definition or explanation.

Promoting Transparency and Accountability

The Committee supports enhanced transparency in land ownership to prevent monopolistic practices and promote fair access and recommends mechanisms that make land ownership data accessible to the public to encourage an open land market. It therefore welcomes the provision of Land Management Plans following consultation with the community and their "potential to create an accessible one stop shop" with information in relation to large landholdings.

The Committee accepts that much of the detail relating to Land Management Plans is best left to secondary legislation and that the relevant regulations should be subject to a pre-laying procedure for all the Parliament to consider them in draft. Leaving such issues to secondary legislation means the Bill will potentially be enacted with insufficient detail and the risk that the secondary legislation is introduced with little publicity.

Another area which highlighted the need for transparency were the provisions relating to compensation mechanisms for landowners and tenants. There has been significant criticism of the revised methodology set out in the Bill which will require further consideration if the Bill is to get the right balance.

The Stage 1 report serves as a critical assessment of the Land Reform (Scotland) Bill, highlighting both its strengths and weaknesses. The forthcoming stages of legislative scrutiny will be imperative in refining the Bill to ensure it meets its objectives in a way that is fair to all parties affected.