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# 16. Rural Revival 🟢
- URL: https://www.peoplesfuture.scot/16-rural-revival/
- Published: 2026-08-20T10:42:49.000Z
- Updated: 2026-08-20T10:42:49.000Z
- Description: About one in six people in Scotland live in rural areas on the official 6-fold classification. By 30 July 2026, the R100 contracts had delivered 99,434 connections, plus 6,299 voucher connections, against a planned 112,939.
- Author: The Peoples Future Scotland
- Tags: The 28

About one in six people in Scotland live in rural areas on the official 6-fold classification. By 30 July 2026, the R100 contracts had delivered 99,434 connections, plus 6,299 voucher connections, against a planned 112,939\. The Affordable Housing Supply Programme has £926 million in 2026–27, with at least 10 per cent of the 110,000-home target to 2032 set for rural and island communities. The Network Support Grant still pays 14.4 pence a kilometre. The constraint is not the absence of programmes. It is that housing, fibre and buses are funded on different clocks.

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## Current reality

### Legal and institutional position

Housing, planning, local bus subsidy, community transport, most roads, internal ferries and concessionary travel are devolved. The Agriculture and Rural Communities (Scotland) Act 2024 already gives a five-year Rural Support Plan for farm and related payments. Highlands and Islands Enterprise and South of Scotland Enterprise are Scottish.

Telecoms regulation and spectrum are reserved. That has not stopped a Scottish subsidy programme. R100 is designed and managed in Scotland (Scottish Government about £591 million, UK Government about £52 million, BT about £53 million). Project Gigabit lots in Scotland are UK-funded; the Scottish Government acts as contracting authority for several of them.

A single multi-year rural pot that merely re-groups existing Scottish grant lines does not require a new reserved power. It requires a Budget choice and administrative alignment.

### The latest official numbers

**People and place.**  
The 2022 Urban Rural Classification remains the official geography. Rural Scotland, across the 6-fold accessible-rural and remote-rural classes, accounts for about one in six of the population and most of the land.

**Broadband — R100 (Scottish Government data insights, 30 July 2026).**  
Planned contract delivery: 112,939 premises. Delivered under contracts (including overspill): 99,434\. Scottish Broadband Voucher Scheme: 6,299\. North lot is furthest from plan (60,764 planned; 36,924 delivered). Completion of the main contracts is still projected for around 2028\. Sixteen subsea cables to 15 islands were laid in an earlier phase. Almost all contract build is FTTP.

**Broadband — Project Gigabit.**  
Openreach Scotland call-off: originally £157 million / about 65,000 premises; modified in January 2026 to about £175.6 million and 77,639 premises, including a Dumfries and Galloway addition. Separate lots include GoFibre in the Borders and East Lothian (about £26 million / around 13,000 premises) and a reported North East lot around £105 million. These premises are those outside R100 contracts and commercial build.

**Housing.**  
AHSP 2026–27: £925.870 million (More Homes Grant £670.225 million; TMDF £92.245 million; financial transactions £163.400 million). A four-year public package described as up to £4.1 billion toward 36,000 affordable homes in that window, within the longer 110,000-by-2032 target, with 70 per cent social rent and at least 10 per cent rural and island. Island AHSP: £172.9 million and 1,448 homes, April 2016–March 2025\. Government figure for rural and island affordable completions, April 2016–March 2025: more than 13,000.

Rural and Islands Housing Fund: extended to March 2028, envelope up to £37 million; approvals list 394 homes as at 20 March 2026\. Feasibility support raised to up to £20,000 per project. Rural Affordable Homes for Key Workers: up to £25 million, April 2023–March 2028\. A separate buyer-facing Rural and Island Housing Grant Scheme has been announced with an indicative £20 million over four years.

**Transport.**  
Network Support Grant: 14.4 pence per kilometre, annual and discretionary, from 1 April 2022\. An additional £2.7 million NSG uplift was announced in August 2026, after an earlier £3.5 million, to October 2026, with conditions on service levels and fare caps. Rural councils still underwrite a large share of local bus kilometres. Community operators run on section 19 and 22 permits.

### How it is experienced in daily life

A house can be approved while the fibre is still on the North-lot backlog. A bus can run this year and be retendered next year. A community trust spends its feasibility money before any of the three capital lines open. The last premises on a glen cost more per connection than a street in a town. A key worker can be appointed to a rural post and have nowhere to live.

### How it got here

Rural policy accumulated programmes rather than a single infrastructure clock. R100 was the answer to commercial fibre stopping at the easy premises. Project Gigabit was the UK residual after R100\. AHSP is national; RIHF and key-worker money were added because small rural sites do not behave like urban grants. NSG replaced older bus-fuel support after the pandemic and remains annual. The Rural Support Plan shows multi-year thinking is already used for agriculture. It has not been applied across the three service lines.

### What has already been tried, and what that showed

R100 can connect at scale and still leave the North lot behind plan. Vouchers and overspill catch premises the contract missed. Island AHSP can deliver more than a thousand homes and still leave local prices rising faster than the mainland. RIHF approvals (394) are not the same as completions. Annual NSG plus emergency fuel uplifts keep kilometres running; they do not give an operator a five-year network. In-house operation and demand-responsive services work in specific places. They are not a national substitute for subsidy.

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## What needs to happen

### The improvement in measurable terms

- Residual premises after R100 and Gigabit, with a published date and technology, including where FTTP is not the rational last mile.
- Rural and island affordable completions at or above the 10 per cent share, with RIHF and key-worker outturn stated separately from approvals.
- Protect bus and community-transport kilometres on a published multi-year envelope, not just a per-kilometre rate.
- New rural housing that is fibre-ready and on a service that reaches work, school and clinic.

### Sequence

Publish a three-to-five-year allocation for the three lines, aligned to a spending review. Finish the contracted R100 lots. Use Gigabit and vouchers for the remainder. Front-load rural housing grant where labour and materials can be secured. Give transport the same horizon as a housing site. Reward projects that do all three on one site.

### Workforce, capital and standards

Rural trades, planners, community-development staff, and fibre crews. Higher unit costs are a fact, not a rounding error. Empty-homes work is capital-light only where the building is salvageable.

### What would count as success in twelve months

- R100 North-lot delivery closer to its 60,764 plan
- A published residual-premises list after contract build
- RIHF and key-worker completions, not only approvals
- NSG or successor money stated beyond a single financial year
- One rural SHIP or enterprise-agency programme that sequences house, fibre and bus on the same page

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## What can be done under current powers

### Who holds the lever

Scottish Ministers: AHSP, RIHF, NSG, R100\. Local authorities: SHIPs, bus subsidy, planning. HIE and SOSE: project support. UK DSIT/BDUK: Project Gigabit funding.

### The statute, budget or direction

Housing and planning law; Transport (Scotland) statutes and NSG directions; R100 contracts; AHSP resource-planning assumptions 2026–30.

### What is already possible and unused

A single rural infrastructure annex in the Budget that does not create a new agency. Shared application windows. Higher intervention rates for combined projects. Empty-homes and croft-house tools already on the statute book. Multi-year NSG equivalent to the Rural Support Plan logic.

### What would still be true if management improved tomorrow

The last fibre connection is still expensive. A sparse bus still loses money. A second-home market still bids against local wages. UK Gigabit lots still depend on UK decisions. Density does not change because the grant is tidier.

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## Where the limits are

### Law and reserved powers

Housing and local transport are Scottish. Spectrum and the telecoms regime are not. Project Gigabit scale is UK money. That is coordination, not a bar on organising Scottish spend.

### Money

£926 million AHSP is national, not a rural ring-fence. R100 is already largely spent or contracted. A new multi-year rural envelope is a reallocation, not a new revenue stream.

### Workforce and capital

Thin contractor markets, weather, ferry slots, and community-trust capacity. A larger pot without development staff underspends.

### Time, geography, UK-wide systems

2028 R100 completion is already the horizon. Island prices and build costs are not Central Belt costs. Fuel shocks hit rural kilometres first.

### Political difficulty, kept separate from legal impossibility

Urban housing need, NHS and education compete for the same Budget. Protecting a rural three-line pot is a priority fight. It is not a competence fight.

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## What is not yet known

Whether the North R100 lot closes the 23,840-premise gap by 2028\. Project Gigabit outturn versus contracted 77,639\. 2025–26 rural affordable completions as a share of the national total. RIHF completions against the 394 approvals. How much of the £25 million key-worker fund is built? NSG after October 2026.

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## Honest summary

**Achievable now.** Align the three Scottish grant clocks. Finish R100 contracts. Publish residual broadband premises. Count rural housing completions, not only targets. Give buses a horizon longer than one year.

**Only partly achievable.** Commercial viability of every last bus kilometre. FTTP to every last house. Reversing depopulation wherever it is already entrenched.

**Would require reserved change.** Redesign of UK telecoms regulation or a unilaterally larger Project Gigabit. Not the consolidation of AHSP, RIHF and NSG.

**Colour mark: green.** The three priorities in this item are already Scottish spend. R100 shows a large digital subsidy can be designed in Edinburgh. Green is not a claim that 14.4 pence a kilometre rebuilds a network, or that 10 per cent of a housing target fills every island waiting list.

**What this item does not settle.** It does not fold ferries, agriculture or tourism into the same pot. It does not treat every rural place as one labour market. It does not make a new fund a substitute for local planning decisions.

The test is whether the next Budget can show housing, fibre and local transport on one rural timetable, and whether the next official year moves R100, rural completions and supported kilometres together rather than in three separate press notes.

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## Connection

Item 8 is the same grid and land-use tension that produces compensatory woodland and high connection costs. Item 7 is the rural skills pipeline. Item 13 is whether families can stay. Item 14 is land use. Public finances decide whether the three lines are protected. The Independence Debate is not required to align with existing Scottish grants.

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**People’s Future Scotland**