First minister John Swinney

Unveiled by the first minister during his Programme for Government announcement yesterday, the new initiative would unblocking barriers to project delivery and unlocking private investment across strategic sectors, with a particular focus on strategic sectors including housing and energy.

John Swinney added that his government would look to strengthen Scotland’s inward investment capability to secure land and grow mobile investment, supporting strategic projects, reinvestment and job creation, while a consultation will be launched on various reforms to simplify the planning and consenting systems to speed up processes, giving greater confidence to those looking to invest while providing local people with confidence and understanding, with implementation from 2027-28.

Legislation will also be developed to reform and modernise Scotland’s compulsory purchase system, to support more effective delivery of development, regeneration and infrastructure projects.

Welcoming the move. David Melhuish, director, Real Estate:Scotland, said: “The creation of a Major Projects Office as part of the Programme for Government is very welcome move and could result in a transformational change in economic performance across Scotland by unlocking significant strategic developments across Scotland to bring much needed jobs, economic growth, and housing.

“However, to fully maximise the opportunity afforded by its creation, the government needs to urgently understand and address the development viability challenge currently affecting key strategic sites and development more generally across Scotland, as well as work to improve the planning system to reduce unnecessary delay and uncertainty. Unless it does so, then the delivery of new homes and employment spaces will continue to fall despite the best endeavours of government.”

He added: “As part of the drive for growth, we also welcome the changed perception of the planning service as an enabler of investment for development and regeneration, rather than merely as a regulator. We also welcome the commitment to a strategic and balanced approach by the government to data centre investments, where recent direction already requires early notification to Scottish Ministers of data centre proposals above 50MW.

“It will be important to achieve certainty for potential investors in these major capital investments as well as certainty for local communities in relation to concerns over energy and environmental factors.

“More broadly despite the significant focus on public sector reform and rationalisation of Agencies and NHS Boards, the role of More Homes Scotland will be critical in acting as a catalyst for the delivery of housing of all forms of tenure if it can successfully leverage in private capital to support constrained public finances. The real estate sector will also follow any proposed longer term reforms government who are key stakeholders for private sector investors.”

Meanwhile, organisations in the housing sector greeted Swinney’s programme, which included a commitment to end the use of “unsafe and harmful” temporary accommodation for children, with a cautious welcome. Read more on Scottish Housing News.