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The European Commission has adopted a new delegated regulation on the first phase for establishing an EU-wide scheme to rate the sustainability of EU data centres which the Scottish Government is monitoring. However significant parts of this directive fall out with the devolved powers of Scottish Parliament. Scottish Government will however consider alignment for parts of the directive that fall within devolved competency. We are in discussion with the UK government around their plans to align UK policy to this directive.

Existing co-location commercial data centre operators have been contacted directly by our economic agencies to explore routes to decarbonise their facilities and operations, with operators being signposted to relevant funding opportunities.

Where proposals for new data centres come forward, our Fourth National Planning Framework (NPF4) ensures their potential impacts are important considerations in planning decision-making. NPF4 needs to be read and applied as a whole, and all applications are subject to site specific assessments.

NPF4 Policy 2 (climate mitigation and adaptation) requires development proposals to be sited and designed to minimise lifecycle greenhouse gas emissions as far as possible. We have published new planning guidance supporting the application of NPF4 policy 2 setting out a proportionate approach to dealing with whole life carbon through the planning process, drawing on recent research and international best practice.

NPF4 Policy 19 (heating and cooling) sets out that National and Major developments that will generate waste or surplus heat, and which are located in areas of heat demand, should include a Heat and Power Plan to demonstrate how energy recovered from the development will be used to produce electricity and heat.

New data centre buildings must also be designed and constructed in compliance with the relevant building regulations applicable to non-domestic buildings, including standard 6.1 which focuses on the reduction of energy demand arising from the use of heating, hot water, lighting, ventilation and cooling systems in a new building.

This government has consistently made the case to the UK Government to fully fund the additional costs to public services of its increase in employer National Insurance contributions. This includes the vital services provided by third sector organisations. Despite our calls for full reimbursement, it’s clear that the support to meet these costs from the UK Government will fall over £400 million short of what is required.

This government has consistently made the case to the UK Government to fully fund the additional costs to public services of its increase in employer National Insurance contributions. Despite our calls for full reimbursement, it’s clear that the support to meet these costs from the UK Government will fall over £400 million short of what is required.

Table 2: Scheme members who were not eligible for the McCloud pensions remedy that did not receive an annual benefit statement in the years 2023, 2024 and 2025, by scheme.

The UK Government’s Employment Rights Bill is a vindication of our Fair Work approach. We welcome the Bill and the statutory footing it will provide to some of the progress we have made in Scotland–including on zero hours contracts, fire and rehire practices, and flexible working.

To help ensure public money supports fairer work places, since July 2023, public sector grant recipients have been required to pay at least the real Living Wage and provide appropriate channels for effective worker voice. It is estimated that over £6 billion worth of public sector grants has been awarded with Fair Work First criteria attached between 1 July 2023 and 31 March 2025.

We also provide funding for Living Wage Scotland to encourage employers to become accredited Real Living Wage and Living Hours employers. Scotland remains the best performing of all four UK countries, with the highest proportion of employees (18+) paid the Real Living Wage or more.

In April we launched a Fair Work digital resource hub which provides guidance for employers, and in June we worked with partners to hold a week-long Fair Work Festival.

Further actions we are taking are set out in the Fair Work Action Plan Impact Report published on 25 September 2025.