Meeting of the Parliament [Draft]

Meeting date: Wednesday, January 28, 2026

Official Report 1740KB pdf

Parliamentary Bureau Motions

The next item of business is consideration of Parliamentary Bureau motion S6M-20575, on approval of a Scottish statutory instrument. I ask Graeme Dey, on behalf of the Parliamentary Bureau, to move the motion.

Motion moved,

That the Parliament agrees that the Land and Buildings Transaction Tax (Investment Zones Relief) (Scotland) Order 2026 [draft] be approved.—[Graeme Dey]

I will be brief. I know that the SSI will pass, but the Scottish Greens will oppose it, for many of the same reasons that we oppose a similar measure relating to freeports.

Freeports and investment zones are both rooted in the discredited idea that tax breaks and deregulation will be good for the economy and therefore good for society. They will certainly be good for the vested interests involved, but it is those vested interests that will hang on to that benefit. In addition, there is at least as much evidence that those schemes displace economic activity as there is that they generate anything additional.

Even once the Scottish National Party has decided to accept the offer of modern variants of discredited 1980s economic policy, it could have attached conditions. It could have restricted the tax breaks so that companies using tax havens do not qualify—it has not done that. It could have ensured that companies that pay poverty wages do not qualify—it has not done that. The Scottish Government has attached those conditions to other policies after persistent pressure from the Greens, and, in committee, the minister was unable to explain why they have not been applied here.

For those reasons, the Greens will oppose the measure.

I welcome the opportunity to set out why the Government is introducing land and buildings transaction tax relief as part of Scotland’s investment zones programme. The programme is an important strategic intervention that is designed to accelerate growth in the Glasgow city region and in the north-east by attracting investment in high-value frontier sectors, including space, photonics and artificial intelligence—areas in which investment and innovation can drive sectoral growth and growth across the whole of Scotland’s economy.

The zones are not abstract concepts; they are grounded in extensive engagement with local businesses, research institutions, local authorities and skills providers, and are backed by substantial private sector investment commitments.

LBTT relief is a key incentive that will make the zones competitive and investment ready. It targets underdeveloped land—sites that have seen little or no activity for years—and removes one of the most significant early barriers to development: up-front transaction costs. This is about enabling investment that would not otherwise happen and focusing on commercial activity that will deliver real economic value.

The reliefs align with the equivalent stamp duty land tax reliefs that are available in investment zones in England. That is a deliberate choice that will ensure that Scotland’s offer is competitive and capable of attracting the same calibre of investment as other parts of the United Kingdom. Investors should have absolute clarity that Scotland is open for business.

The relief conditions are clear and robust. Relief will be available only where land is used for qualifying commercial purposes, and a three-year control period will ensure that relief is retained only where genuine development takes place. Revenue Scotland will administer the relief and enforce compliance, which will be supported by its wider anti-avoidance framework. It is a targeted economic tool with clear safeguards.

The Scottish Fiscal Commission has assessed the annual costs as being below its materiality threshold of £5 million. Programme costs will be met from the UK Government’s £160 million funding envelope for each zone, so there will be no detriment to the Scottish budget.

The programme is designed to strengthen regional innovation and capacity, attract private investment and support the creation of high-quality jobs. Both zones anticipate substantial matched funding: up to £340 million in Glasgow city region and up to £261 million in the north-east. That level of commitment is not accidental; it reflects confidence in the programme and Scotland’s economic strengths and directions.

We will work closely with the regional economic partnerships to ensure fair work principles are embedded throughout the investment zones. Both zones are currently finalising tax and governance plans with clear commitments to ensure that the benefits of growth are shared fairly. Those plans will be in place by the end of this financial year.

The investment zones are part of a coherent, targeted and ambitious programme. LBTT relief is a necessary component and will help to unlock development, attract investment and support the creation of high-quality jobs in communities that stand to benefit enormously from long-term and sustainable economic growth.

The question on the motion will be put at decision time.

The next item of business is consideration of Parliamentary Bureau motion S6M-20576, on suspension of standing orders. I ask Graeme Dey, on behalf of the Parliamentary Bureau, to move the motion.

Motion moved,

That the Parliament agrees that, for the purposes of consideration of the supplementary legislative consent memorandum on the Children’s Wellbeing and Schools Bill, Rules 9B.3.5 and 9B.3.6 of Standing Orders are suspended.—[Graeme Dey]

The question on the motion will be put at decision time.