Official Report 1038KB pdf
Good morning. The first item of business is general question time. In order that we can fit in as many questions as possible, I would be grateful for short and succinct questions and responses.
Glasgow Low-emission Zone (Taxi Drivers)
To ask the Scottish Government what support is available to taxi drivers in Glasgow to help them comply with the low-emission zone. (S6O-04177)
Comprehensive support has been provided to help the taxi trade to adapt to low-emission zones. In the Glasgow region, £3.4 million has been provided through the LEZ retrofit fund for taxi operators to upgrade their existing vehicles. More than 400 taxis have been retrofitted to the LEZ emission standard as a result.
The LEZ support fund also provides a cash scrappage grant for microbusinesses. More than 700 vehicles in the Glasgow region, many of which are taxis, have been disposed of through the scheme. The switched-on taxis loan has provided more than £5.5 million in interest-free loans since 2016 to support Glasgow based hackney and private-hire operators to purchase new and used electric taxis.
Taxi drivers in Glasgow are keen to play their part in the transition to net zero, but at present they struggle to access some support to comply with the low-emission zone in the city, particularly with the liquidation of Vehicle Repowering Solutions, one of only two companies that offered retrofits under the clean vehicle retrofit accreditation scheme.
I previously wrote to the cabinet secretary to raise taxi drivers’ concerns, but the issue remains. Will she meet me and representatives of the taxi industry to address their concerns?
As the member knows from previous correspondence, we proactively dealt with those taxi drivers. When the problem with the supplier occurred, taxi operators who had a retrofit grant offer for liquid petroleum gas conversion were given the option to change to an alternative taxi retrofit supplier. Some operators have already taken up that offer.
The Energy Saving Trust wrote to all affected operators and invited any taxi operators who faced losing a deposit to contact the trust if they were unable to reclaim their deposit. However, none did so. Glasgow City Council also offered affected taxi operators further time-limited exemptions to LEZ enforcement.
If there are continuing issues, notwithstanding what is already happening, I am concerned. If Pam Duncan-Glancy writes to me with illustrations of those continuing issues, we will be able to identify the best resolution and set up a meeting if necessary. However, as I said, the Energy Saving Trust and Glasgow City Council have done proactive work on the issue.
Last month, Glasgow City Council announced a consultation that could, ultimately, lead to the current cap on cab numbers being scrapped, retained or reviewed. Considering the fact that the LEZ has already undermined Glasgow’s late-night economy, does the cabinet secretary accept that a reduction in cab numbers might further damage that sector?
Clearly, the licensing of taxi drivers is an issue for local authorities. I assume that the Conservatives do not want to centralise that.
There is an issue on footfall. Earlier in 2024, it was recognised that there had been no reduction in footfall in Glasgow. Any subsequent reduction in footfall might have happened as a result of cost of living pressures or other issues. However, unlike the local authorities for other major cities in Scotland, Glasgow City Council does not have an age limit on taxis and, as a result, there is a higher proportion of older, non-compliant taxis in the Glasgow fleet for a variety of different reasons.
There are different experiences in different cities. Those issues are best addressed by Glasgow City Council, but I recognise Sue Webber’s concern in raising them.
Local Government Services (Banffshire and Buchan Coast)
To ask the Scottish Government what its response is to reported calls from constituents to save local government services, in light of reports that some services across Banffshire and Buchan Coast are under threat of closure. (S6O-04178)
The Scottish Government has increased local government funding to record levels. If the Scottish budget is supported by Opposition parties and passes, Aberdeenshire Council will receive its formula share of more than £1 billion of additional funding for local government. That would deliver an increase for the council of 7.4 per cent, which would help it to maintain services across Banffshire and Buchan Coast without the need for big increases in council tax. However, local authorities have their own powers and responsibilities, and it is for locally elected councillors to make decisions on how best to utilise the total funding that is available to deliver services for their local communities.
I welcome the extra investment for our public services.
Before Christmas, it was a pleasure to work with community activists in Banffshire and Buchan Coast to fight the proposed closures of libraries across the north-east. Initially, we were delighted when the Conservative administration of Moray Council announced a U-turn on its proposed closure of Cullen library. Only hours later, we were crushed when the council U-turned on its U-turn.
Libraries are more than just buildings: they are a lifeline for many. What more can we do to ensure that essential public services such as libraries are protected?
The Scottish Government places great importance on public libraries and we believe that everyone should have access to library services. Although it is for locally elected councillors to manage their day-to-day business and decision-making processes, any decision about public libraries must be considered extremely carefully. Local authorities should continue to work in partnership with communities to explore new ways of delivering essential front-line services based on local needs.
A number of my constituents in North East Scotland, including in Banff and Buchan, have contacted me with concerns about the impact of local government funding changes on local services. In particular, the issue of library closures in Aberdeenshire has been raised repeatedly with me in response to reports that branches may close due to supposed reduced footfall.
I cannot stress enough to the minister how crucial public libraries are to our communities, and that they must be protected. Does the minister agree that meaningful public consultation is vital before any decisions are taken on library closures?
I absolutely agree with the member about the critical importance of public libraries. I recognise the value that they add to the local community in my constituency in Glasgow, and I agree that ensuring that the community has been adequately consulted is an essential part of any changes that local authorities might want to make to the provision of library services.
Planning Regulations (Nuclear Power)
To ask the Scottish Government what plans it has to reform planning regulations to enable the construction of new nuclear power stations. (S6O-04179)
The Scottish Government’s position on traditional fission nuclear energy is clear: we do not support the building of any new nuclear power stations in Scotland under current technologies. New nuclear power would take years, if not decades, to become operational and would come at a high cost. Instead, the significant growth in renewables—[Interruption.]
When the cabinet secretary is responding, I would be grateful if members listened, as a matter of courtesy.
Thank you, Presiding Officer.
Instead, the significant growth in renewables, storage, hydrogen and carbon capture provides the best pathway to net zero by 2045 and will deliver affordable, resilient and clean energy supplies for Scotland.
What a dreadful answer that was. We really need a Scottish Government that sees nuclear energy as the crucial clean energy technology that it is—not a Government that denies science—[Interruption.]
Let us hear Mr Kerr.
I recently listened to young Scots apprentices in the nuclear sector. They were a highly impressive group of young people. They said that they were going to have to move away from Scotland and take their skills to other parts of the United Kingdom if they wanted to pursue their careers. Why is the minister prepared to say goodbye to these highly skilled young people, and how is any of her characteristic negativity on the issue in Scotland’s national interest?
Nuclear workers in Scotland are highly skilled people who have extremely transferable skills that will be indispensable for the energy sector as a whole in Scotland. However, I think that we can be assured that they will not be moving to Hinkley Point. Originally estimated to cost £18 billion and to be complete in 2017, it is now estimated to cost £46 billion and is expected to be complete in 2031 at the earliest. That is hardly an advertisement for nuclear power.
Rural Pharmacies (Investment)
To ask the Scottish Government how it plans to invest in front-line primary healthcare to support rural pharmacies. (S6O-04180)
The Government continues to support community pharmacies, including rural pharmacies, by delivering the largest-ever increase to funding for two years in a row. That has delivered a total of £422 million in guaranteed funding for community pharmacies across Scotland in this financial year.
In addition, there is a guaranteed minimum target income for essential small pharmacies, most of which are rural, and a pharmaceutical needs weighting payment, which acknowledges both demographics and the deprivation that is associated with a patient’s postcode. Those measures help to support rural pharmacies by ensuring that they are not disadvantaged because of their location.
Many operators in my constituency say that their reserves have been wiped out because the medicine tariffs that are paid by NHS Scotland have failed to keep pace with the rapidly increasing costs of medicine, resulting in pharmacists having to, in effect, subsidise national health service medicines out of their own pocket.
Community pharmacies provide a vital service, with increasing demand in remote and rural areas. They are hugely valued public services that are operated by private contractors, and they have been underfunded consistently in recent years. Many face an accumulative £20,000 to £30,000 a year increase in operating costs as the new minimum wage and national insurance rates kick in, with no internal mechanism to absorb the increases.
In the light of those funding pressures, will the minister set out what support the Scottish Government will provide to community pharmacies? Will the Scottish Government consider the option of the NHS exemption for national insurance contributions being applied to NHS contractors?
Before I respond to Finlay Carson’s question, I thank community pharmacies across Scotland for the work that they do in their communities all year round but especially at this time of year. They are an integral part of supporting people through the winter from a preventative care perspective and by providing a wide range of pharmaceutical services.
I meet Community Pharmacy Scotland regularly, and the issue of payments is always on the agenda. I have undertaken to write to NHS National Services Scotland with regard to Community Pharmacy Scotland’s frustrations about receiving payments. However, as I pointed out in my original answer, over the past two years, the funding settlement from the Scottish Government for community pharmacies has been very good.
I recognise that addressing issues in rural primary care is a key priority for the Scottish Government. Will the minister outline how primary care services such as pharmacies will be supported through the upcoming Scottish budget? Will she join me in encouraging colleagues from all parties to support the budget to enable plans to come to fruition?
I agree whole-heartedly with Jackie Dunbar’s final point. It is important to point out that the Scottish Government is investing record amounts in primary care and is on track to deliver our commitment to increasing primary care funding by 25 per cent. Our 2025-26 budget includes more than £2.2 billion of investment in primary care services, and plans for reform across the sector will take into account service needs in rural and island communities. We remain committed to investing in the national centre for remote and rural health and care.
As I indicated to Finlay Carson, our on-going negotiations with Community Pharmacy Scotland will ensure that the needs of rural community pharmacies are taken into consideration in future settlements.
Ferry Fleet
To ask the Scottish Government how it plans to strengthen Scotland’s ferry fleet over the coming year. (S6O-04181)
The ferry fleet will be strengthened with the delivery and deployment of six new major vessels from early 2025, starting with the Glen Sannox. We will also progress the procurement of seven new electric vessels and will retain a resilience vessel to cover planned and unplanned outages. Those improvements form part of the spend of more than £530 million to operate, maintain and enhance our ferry networks, as set out in the 2025-26 draft budget.
It has recently been revealed that more than £7 million has been spent on the MV Caledonian Isles since it went into dry dock last year, and it will not be back in service until March. The vessel is 32 years old. Does the cabinet secretary think that it is acceptable that we still have to rely on these old creaking vessels, bearing in mind the fact that the long-promised new ferries continue to be delayed?
The fact that we have six new major vessels entering service and that seven new electric vessels are being procured demonstrates that we know that we need to provide greater resilience in the fleet with new ferries, which is what we are doing. That does not include the additional procurement that will be undertaken in the second phase of the small vessel replacement programme—SVRP 2.
Those vessels are important to our islanders. We have set out an investment of £530 million in the draft budget to secure and maintain our ferry networks. I hope that that will give people confidence that we are investing and that we are supporting our island communities. That is in the draft budget, and I hope that the Conservatives can bring themselves to support it.
Can the cabinet secretary give us the most recent progress update on the MV Indaal, MV Claymore and MV Lochmor? What specific improvements will those new vessels make on the routes that they will serve, and how will their addition to the fleet improve the ferry network as a whole?
The latest update from Caledonian Maritime Assets Ltd has indicated that delivery of those vessels from the Cemre yard is expected to follow in four-monthly intervals after the delivery of the first vessel, the MV Isle of Islay.
Those vessels will be deployed on the Islay and Little Minch routes over the coming years. Along with the on-going port improvement works that we are investing in, the vessels will significantly improve services for island residents, visitors and businesses. The increase in capacity—in particular, heavy goods vehicle capacity—on the Islay route will ease current pressures and help to sustain economic growth. The additional vessel on the Little Minch routes during the summer period will increase capacity and enhance cover for the wider fleet during the winter overhaul period.
Although the additional funding in the draft budget for ferry services in Orkney is welcome, it falls short of what will be needed to allow the procurement of new ferries in Orkney. Will the cabinet secretary provide an assurance that she will lend her support to efforts to get that shortfall made up so that the new ferries that are desperately needed in my constituency can be procured?
When I visited Orkney as a minister, I was made well aware of the issues and concerns surrounding the council-run ferry service and the importance of supporting that. The member will be aware that, in recent years, the Government has increased support on the revenue side for the servicing and maintenance of that fleet, but it is clear that Orkney Islands Council faces big challenges. I am interested in lending my support, where I can, to ensure that the council can progress the improvements that it needs to make to ensure that it has a resilient ferry fleet.
Employer National Insurance Contributions
To ask the Scottish Government whether it will provide an update on the impact of the increase in employer national insurance contributions on the public and third sectors in Scotland. (S6O-04182)
On 20 November last year, the Scottish Government published estimates of the impact of the increase in employer national insurance contributions on the public sector in Scotland. Those estimates indicate that the combined impact on the public sector and commissioned services is more than £700 million. If the United Kingdom Government’s reported allocation is all that is provided, that will mean that the Chancellor of the Exchequer will be short-changing services that the Scottish public depend on by more than £400 million.
Labour’s employer national insurance hike is a tax on jobs, and it will have a major impact on the delivery of services. Third sector organisations face massive bills. VSA in Aberdeen is having to find a whopping £468,000 to cover its additional national insurance bill. Has the UK Government given any indication that it will cover all the additional national insurance costs of the public and third sectors in Scotland, or is it content to let jobs and vital services wither on the vine?
The Treasury must fully fund the actual costs for Scotland’s public sector and not just give a much lower-value Barnett share of the spending in England. We have a range of public sector employers, including the national health service, the police and local authorities, which need clarity on the matter to inform their spending decisions.
On 3 January, the First Minister and the president of the Convention of Scottish Local Authorities—supported by 48 public and voluntary sector organisations—wrote to the chancellor to raise concerns about the impact of the increase in employer national insurance contributions and to seek clarity on funding.
I will do something rare and agree with Kevin Stewart in his condemnation of Labour’s broken-promises tax on jobs.
However, as negotiations continue with the Treasury on compensation for national insurance liabilities, will the minister commit to ensuring that, whatever deal is reached with the Treasury, a full, fair and proportionate amount is passed on to Scottish local councils and that they are not short-changed by the Scottish National Party Government all over again?
The member recognises that there is a gap of around £400 million. If and when we receive full payment from the UK Government, the local government allocation will form part of that and we will work with COSLA to ensure that, should the full £700 million be allocated to the Scottish Government, local authorities will receive their necessary share.
That concludes general questions. Before we move to First Minister’s questions, I invite members to join me in welcoming to the gallery the Hon Om Birla, Speaker of the Lok Sabha, Parliament of India. [Applause.]
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First Minister’s Question Time