Scottish Government Awards £95 Million Digital Support Contract to Transform Rural Economy

In a significant move to strengthen Scotland’s agricultural landscape and rural economy, the Scottish Government has awarded a substantial digital support contract to Version 1 Solutions Limited. This strategic partnership, potentially worth up to £95 million over seven years, aims to revolutionize how rural payments and support services are delivered across Scotland’s farming communities while advancing the country’s climate and sustainability ambitions.

A Digital Transformation for Rural Scotland

The Agriculture and Rural Economy (ARE) Directorate operates at the intersection of tradition and innovation—where centuries-old farming practices meet cutting-edge digital solutions. The directorate manages a complex ecosystem of support payments that sustains rural communities across Scotland, processing approximately 36,000 claims annually from about 20,000 customers who represent 46,000 registered businesses.

This infrastructure distributes roughly £600 million each year, serving as a vital economic lifeline for Scotland’s countryside.

We operate in a complex environment that is subject to market pressures, policy changes and the steady introduction of new measures that deliver high quality food production, climate mitigation and adaptation, and nature restoration

As explained by Nick Downes, chief digital and data officer at ARE. This complexity demands sophisticated technological solutions that can adapt to evolving needs while maintaining reliability and cost-effectiveness.

The newly signed contract focuses primarily on support, maintenance, upgrading, and enhancement of current digital services, with an estimated actual spend between £60-85 million—though the contract allows flexibility up to £95 million should additional resources be required during its potential seven-year duration.

Agricultural Reform

What makes this partnership particularly significant is its alignment with Scotland’s broader agricultural reform vision. The ARE Directorate plays a central role in the government’s climate change initiatives and has published its Vision for Agriculture and Scotland’s Agricultural Reform Route Map, establishing a framework for Scotland to become “a leader in sustainable and regenerative farming.”

The digital infrastructure being developed and maintained through this contract will serve as the technological backbone for this transformation. Version 1 will deploy digital and data technologies that directly support farmers and crofters while simultaneously protecting the rural environment and fostering sustainable economic growth in agriculture and trade.

Innovation driven by Experience

The Rural Payments and Services (RP&S) Digital Platform that underpins these services has evolved significantly since its technical architecture was first defined in 2012. Originally designed to apply EU Common Agricultural Policy (CAP) regulations with exceptional precision, particularly regarding land measurement, the platform has since incorporated newer technologies while maintaining legacy systems that remain essential to its operation.

This history of innovation continues with the new contract, which emphasizes the “triple imperative” facing ARE: modernizing technical architecture, adapting existing support schemes while introducing new ones, and applying “digital thinking and innovation to exploit technologies and provide customer-centered, reliable, secure and cost-effective services.”

Collaborative Approach

One distinctive feature of this partnership is its emphasis on collaborative work through “blended teams.” Rather than outsourcing development entirely, Version 1 will supplement in-house staff, with work led by the Scottish Government but executed jointly. This approach has proven successful in recent years and will remain the underpinning model for the partnership.

“We were impressed by their expertise in their grasp of our environment and, critically, how to bring fresh learnings and digitally enabled approaches for improvements such as data-led policy planning, vitally important for rural land use,” Downes noted regarding Version 1’s capabilities.

Community Benefits

Beyond the technological aspects, Version 1 has committed to delivering several community benefits through this contract. These include paid internships and mentoring sessions for up to 12 students annually, four one-week work experience programs for 25-50 young people each year in Scotland, and 4,500 training hours focused on digital skills for farms and micro-enterprises, including the donation of 150 digital devices.

Additionally, Version 1 is accredited as a Living Wage Employer and has committed to maintaining this standard throughout the contract period, ensuring that the economic benefits of this partnership extend beyond the technological realm.

Vision for the Future

As Scotland navigates the complex challenges of agricultural reform, climate change mitigation, and rural economic development, this digital support contract represents a significant investment in the technological infrastructure needed to succeed. The partnership between the Scottish Government and Version 1 signals a recognition that digital transformation is not merely about maintaining existing systems but about reimagining what’s possible for Scotland’s rural communities.

With a focus on reliability, security, and innovation, this seven-year partnership aims to ensure that Scotland’s agricultural sector remains competitive, sustainable, and resilient in the face of global challenges. As the Agriculture Reform Programme progresses toward its 2027 targets and beyond, the digital foundations being laid today will shape the rural Scotland of tomorrow.