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Meeting of the Parliament [Draft]

Meeting date: Wednesday, March 26, 2025


Contents


Portfolio Question Time


Deputy First Minister Responsibilities, Economy and Gaelic

The Deputy Presiding Officer (Liam McArthur)

Good afternoon. The first item of business this afternoon is portfolio questions, and the first portfolio is Deputy First Minister responsibilities, economy and Gaelic. Members who wish to ask a supplementary should press their request-to-speak buttons during the relevant question. There is quite a bit of interest in supplementaries, so I make the usual appeal for brevity in questions and responses.


Culture Sector (Contribution to Glasgow and West of Scotland Economy)

1. Pam Duncan-Glancy (Glasgow) (Lab)

To ask the Scottish Government what discussions the economy secretary has had with ministerial colleagues regarding the contribution that the cultural sector makes to Glasgow and the west of Scotland’s economy. (S6O-04480)

The Deputy First Minister and Cabinet Secretary for Economy and Gaelic (Kate Forbes)

We have demonstrated our commitment to the culture sector with an increase of more than £34 million to next year’s culture budget, which takes us more than halfway to our commitment to increase support by £100 million annually by 2028-29. Notably, our commitment means that, through Creative Scotland’s multiyear funding, organisations in Glasgow will receive almost £60 million in funding over the next three years. Although I have not had specific ministerial discussions regarding the culture sector’s impact on the economy of Glasgow and the west of Scotland, I welcome discussions from all colleagues on that.

Pam Duncan-Glancy

The show “River City” has been a vital training ground for the culture sector in Glasgow and the west of Scotland. In the past five years alone, the show has launched the careers of 22 Scotland-based writers and 10 directors, most of whom are women. It also plays a key role in university programmes such as those in Glasgow Caledonian University, giving pathways to vital jobs in the industry. The issue is not just a cultural one—it is about skills and the economy, too.

What assessment has the Deputy First Minister made of the impact of losing that vital training infrastructure on pathways into the screen sector, particularly for working-class women and mid-career creatives in Glasgow? What action will she take to raise that directly with the BBC?

Kate Forbes

I commend Pam Duncan-Glancy and others for their cross-party support of the screen sector and for recognising the role of “River City” as a BBC production. As she says, the show has provided a pipeline of work for actors and actresses in Glasgow and, in particular, in the Dumbarton location, and she will know that the Cabinet Secretary for Constitution, External Affairs and Culture, Angus Robertson, is very involved in the issue. Only this week, he met Equity members on the matter.

The priority is that there should be no detriment to actors, actresses, the pipeline of work or the screen sector from BBC decisions. As Pam Duncan-Glancy knows, there are growing questions about drama commissions in Scotland, which Angus Robertson has raised with the Secretary of State for Culture, Media and Sport, Lisa Nandy.

Clare Haughey (Rutherglen) (SNP)

The culture sector across Scotland has had a significant boost as a result of the delivery of multiyear funding. Can the Deputy First Minister say any more about how that is ensuring a thriving cultural scene and supporting employment opportunities in Glasgow and the surrounding areas, such as my constituency of Rutherglen, as well as boosting the growth of creative industries across Scotland?

Kate Forbes

Our investment in Scotland’s culture sector has led to a significant increase in the number of community-based and locally focused creative industries and cultural organisations coming into the multiyear funding portfolio, which better represents the culture and geographical diversity of Scotland, including in Clare Haughey’s Rutherglen constituency.

We are committed to increasing culture budgets by £100 million by 2028-29 to demonstrate the commitment to the sector’s future. I refer Clare Haughey to my earlier answer, in which I said that, in Glasgow alone, that has resulted in securing nearly £60 million over the next three years for the future of key cultural and creative organisations.


Green Economy (Investment)

To ask the Scottish Government whether it will provide an update on the steps that it is taking to encourage investment in Scotland’s green economy. (S6O-04481)

The Minister for Employment and Investment (Tom Arthur)

The growth and success of Scotland’s green economy are a priority for the Government. Delivering our climate and economic growth ambitions will provide opportunities that support jobs, trade, investment and growth. Our programme for government outlined a commitment to deliver a co-ordinated programme to attract investment in the priority areas of net zero, housing and infrastructure by implementing recommendations from the investor panel. That will focus on improving engagement with investors and strengthening our capacity and capability in delivery. A recent example of action in that area was the global offshore wind investment forum, on 17 March.

David Torrance

It is vital that Scotland sees the maximum economic benefit from the renewables revolution, particularly through the establishment of a strong Scottish supply chain to support green jobs up and down the country. Can the minister say any more about how the Scottish Government is working to encourage regional growth and sustainable job creation across Scotland?

Tom Arthur

The Scottish Government is supporting regional economic growth through our £1.9 billion investment in the national network of city and regional growth deals. That long-term investment commitment enables regional partners to deliver activity, which supports regional job creation.

We are working closely with our enterprise agencies and the Scottish National Investment Bank to enable Scottish businesses to access domestic opportunities in, for example, the clean energy supply chain. This year, we have tripled our capital investment in the offshore wind sector to £150 million in order to support the ports, manufacturing and supply chain facilities that are required, which will help secure jobs and economic benefits at scale in Scotland.

Brian Whittle (South Scotland) (Con)

The minister will recognise the necessity of building a skilled workforce and growing the green economy to encourage investment. He will also recognise the invaluable contribution that our colleges make in fulfilling that task. Given that, can he explain why Ayrshire College has been told that its core teaching grant has been cut, and why, despite 5,000 skilled engineers being required by the area’s businesses, including many related to the green economy, engineering is not being prioritised as an area of growth?

Tom Arthur

Engineering, energy-related apprenticeships and the information technology and digital sectors are being prioritised, because of their role in driving economic growth. In response to employer demand, Skills Development Scotland has ensured that requests for engineering apprenticeships have been met through in-year contract allocations.

We are aware that Ayrshire College plays an important role in supporting the Ayrshire regional economy. Skills Development Scotland oversees the national apprenticeship programme and administers funding on the Scottish Government’s behalf. It conducts an open procurement process via Public Contracts Scotland and, throughout the year, implements in-year reallocations of modern apprenticeship starts to ensure flexibility in responding to employer demand. We encourage Ayrshire College to continue to liaise with SDS and raise any concerns about its contract with the organisation in the first instance.

Paul Sweeney (Glasgow) (Lab)

Will the minister commit to progressing the Scottish Offshore Wind Energy Council project for offshore support vessels and crew transfer vessels, which is a shipbuilding opportunity for Scotland, as well as the Malin and Star Refrigeration B-Neatpump renewables project, which shows great potential for significant maritime manufacturing and shipbuilding in Scotland?

I recognise the member’s points, and I am happy to engage with him directly on them.


Seafood Processing Sector

3. Karen Adam (Banffshire and Buchan Coast) (SNP)

To ask the Scottish Government what immediate and longer-term actions it can take to support and promote the Scottish seafood processing sector, ensuring that it can compete effectively in a United Kingdom and global market. (S6O-04482)

The Minister for Business (Richard Lochhead)

The seafood processing sector in north-east Scotland generates more than £100 million in gross value added a year, contributes £700 million of the region’s £2.2 billion food and drink manufacturing turnover and provides more than 4,000 direct full-time-equivalent jobs.

To support the sector’s economic growth, we have provided £10 million from 2023 to 2025 to support the implementation of Scotland’s food and drink strategy, which was developed in collaboration with producers and which outlines how we are driving growth for businesses across various sectors, including the seafood processing industry. In addition, we have since 2014 invested more than £7 million in the Scotland food and drink export plan, which has helped Scottish businesses, including seafood processors, capitalise on key market opportunities both now and in the future.

Karen Adam

The Scottish Seafood Association, known for its quality and sustainability, has set out the growing need to increase sales and demand in the UK and across global markets and aligning that with the promotion of brand Scotland. However, with on-going challenges ranging from market access for small and medium-sized enterprises to logistics and skills shortages, it is critical that we not only strengthen our domestic seafood presence but bolster our position on the international stage and collectively work towards increasing the visibility of Scottish seafood as a premium sustainable product. What role can the Scottish Government play in facilitating the growth that the sector so badly needs?

Richard Lochhead

I know that the issue is close to Karen Adam’s heart, given the importance of seafood processing and the catching sector to her constituency. The funding that we have provided for the food and drink industry strategy to date has increased the seafood sector’s value and reputation at home and internationally.

A number of such projects have been led by Seafood Scotland. I am a big fan of the organisation, and in my role as trade minister, I am happy to meet it to discuss any further steps that should be taken to support the international opportunities that are being realised in that fantastic sector.

Tim Eagle (Highlands and Islands) (Con)

Karen Adam has raised some incredibly important points. The catching and processing sectors are important to communities across Scotland, but many are very worried that, in future talks between the UK Government and the European Union on a new deal, there might be demands to back down on current fishing rights. What conversations is the Scottish Government having with the UK Government and European officials to protect the processing sector?

Richard Lochhead

The member has raised an important point, but he will be aware of the obstacles for seafood exporters in Scotland that Brexit created and the damage that those obstacles have caused the sector. I am therefore surprised that he has now reversed his position and is saying that being out of the European Union is causing problems and leading to difficult negotiations. Perhaps his party should not have supported Brexit in the first place, given all the damage that it has caused seafood exporters the length and breadth of Scotland. I am sure that, unlike the member’s party, Mairi Gougeon, the cabinet secretary responsible for the negotiations, takes the interests of the fishing industry very seriously.


Gaelic-medium Education (Glasgow Shettleston)

4. John Mason (Glasgow Shettleston) (Ind)

To ask the Scottish Government whether it will provide an update on the provision of Gaelic-medium education at primary level in the Glasgow Shettleston constituency. (S6O-04483)

The Deputy First Minister and Cabinet Secretary for Economy and Gaelic (Kate Forbes)

I commend Glasgow City Council for its commitment to Gaelic-medium education and the good progress that it has made in that regard. Plans are in place for a fourth Gaelic school, which will serve the Glasgow Shettleston constituency and other areas. We understand that planning permission has been granted and that the construction contract is in place. Pupils who will attend the school have already started their Gaelic-medium education at North Kelvinside primary school, and Glasgow City Council expects that they will move to the renovated school in autumn 2026. By means of the £2 billion learning estate investment programme, which is being delivered in partnership with local authorities, we will provide Glasgow City Council with significant funding support for the school project.

John Mason

The Deputy First Minister’s answer is really encouraging. As she has said, Glasgow will now have four Gaelic-medium schools and, on top of that, an extremely important building in the east end of Glasgow has been saved. Could other councils learn from that example and increase the number of Gaelic-medium schools?

Kate Forbes

The most recent census figures and other evidence show that Gaelic-medium education continues to grow in popularity. As a product of that education, I obviously think that it is a great idea that offers pupils great prospects. We stand ready to support local authorities that want to develop Gaelic-medium opportunities and respond to parents who indicate a preference for placing a child in Gaelic-medium education.

With a reminder that the question relates to Gaelic-medium education in the Glasgow Shettleston constituency, I call Emma Roddick to ask a supplementary question.

Emma Roddick (Highlands and Islands) (SNP)

It is vital that we support Scotland’s indigenous languages and promote Gaelic language and culture through continued education and investment. Will the Deputy First Minister say more about the Scottish Government’s work to support growth of the language and promote its cultural, economic and community value across Scotland?

It would be helpful if you mentioned Glasgow Shettleston.

Including in Glasgow.

Kate Forbes

We can all agree on the wonders of the Glasgow Shettleston constituency and its long-standing representative.

Gaelic is Scotland’s language and, if Scotland cannot protect one of its indigenous languages, nobody else will, so I have always appreciated the cross-party support for Gaelic. There are quite a number of encouraging examples of progress, and we will continue to support Gaelic and promote its educational, cultural, economic and community value.


Long-term Economic Inactivity (Fife)

To ask the Scottish Government what action it is taking to tackle long-term economic inactivity in Fife. (S6O-04484)

The Minister for Employment and Investment (Tom Arthur)

Economic inactivity is a complex area, which has required the Government to commit to a co-ordinated approach. Devolved employability services are pivotal in supporting people to progress towards and into sustainable fair work. The programme for government prioritises addressing economic inactivity by committing to improving health services and introducing specialist employability support for disabled people across all local authorities.

The Deputy First Minister recently met business, third sector and public sector leaders to discuss what additional measures would have the greatest impact. For example, we know that childcare is important, and Fife is one of the six early adopter communities that are working to develop and test local systems of childcare for families who need it most.

Roz McCall

The number of registered private sector enterprises fell by 60 in 2023-24 and employment in businesses in that sector fell by almost 2,500 jobs in the same period.

If we dig a little deeper, we find that Fife’s job density as a whole for the period 2018-2022 was only 0.69 jobs for every resident of working age, which is far behind the Scottish average. Fife’s claimant rate remained static in 2023-24, and it remains higher than the Scottish average, with the Kirkcaldy claimant count almost treble that of affluent areas in north-east Fife.

What specific support is the Scottish Government providing to help people in Fife to re-enter the workplace and to address the persistent economic inactivity challenges there?

Tom Arthur

The Opportunities Fife partnership commissioned several projects to support individuals who are economically inactive back into the workplace. As the member will appreciate, it is the local economic partnership that delivers employability support, harnessing the power of regional working with a mixed economy of partners.

The ground that the member covered in her supplementary question illustrates the complexity and multifaceted nature of the drivers of economic inactivity. She touched on the issue of employment opportunities in particular. Through regional growth deals, from which Fife benefits, and community wealth building initiatives, we are seeking to create greater equality between the regions in Scotland.

We are taking a multifaceted approach through investing to stimulate jobs and economic growth, as well as making direct interventions through employability provision.

Willie Rennie (North East Fife) (LD)

Such high rates of economic inactivity are neither good for the individuals concerned nor for our long-term economy, especially as the new cohort of people who are economically inactive tend to be younger and have neurodevelopmental conditions. What discussions has the minister had with his health colleagues about prioritising neurodevelopmental services to ensure that we can get those people back to work, if that is possible?

Tom Arthur

The Government takes that extremely seriously. Of course, as is implicit in the point that Willie Rennie makes, it is about not just employability services but mental and physical health services. We are taking an holistic, joined-up approach, recognising the multitude of factors that can determine whether someone is economically inactive.

As I referenced in my earlier answer, the Deputy First Minister has been engaging with a range of stakeholders and partners, including those who operate in the mental health and disability spheres.

I reassure Willie Rennie that the Government is committed to working in partnership at local, regional and national level to ensure that we can provide the most rounded and holistic support possible, to help to address economic inactivity.

With a reminder that the question is about economic inactivity in Fife, I call Daniel Johnson briefly.

Daniel Johnson (Edinburgh Southern) (Lab)

The issues in Fife demonstrate the need to have an accurate picture of where there are issues with people accessing the workplace. As Willie Rennie referenced, there is an issue with young people. However, at the Economy and Fair Work Committee this morning, Skills Development Scotland said that the real youth unemployment figure is upwards of 10 per cent, and that is not the official figure. Does the minister agree that we need to re-examine our approach to data gathering to get a clearer picture? Has he had discussions with Skills Development Scotland about the issue of youth unemployment figures?

Tom Arthur

I assure the member that we are having conversations across Government, on the point that he referenced in particular. That speaks to the consideration that we are giving to the specific transition points in people’s lives where economic inactivity can begin. We are giving that very serious consideration and I would be happy to engage further with the member on the matter.


Artificial Intelligence (Regulation)

6. Patrick Harvie (Glasgow) (Green)

To ask the Scottish Government what its position is on the regulatory approach to AI and any impact that differences between regulations in the United Kingdom and the European Union could have on Scotland’s economy. (S6O-04485)

The Minister for Business (Richard Lochhead)

Regulation on AI is reserved to the UK Government, so the Scottish Government does not make direct decisions about AI regulation.

Scotland was the first of the UK nations to publish an AI strategy in 2021, and we continue to provide AI support to business through our enterprise agencies and the Scottish AI Alliance.

Although AI is reserved, the UK Government position can influence devolved responsibilities. We have to continue to engage with the UK Government to advocate that its approach to AI regulation considers the interests of the citizens and businesses of Scotland.

Patrick Harvie

It is increasingly clear that the rapid development of AI potentially carries great benefits and catastrophic risks. Therefore, only a balanced approach to regulation gives us a chance of gaining the benefits while reducing the risks.

That is what the EU is seeking to achieve, unlike the US or, apparently, the UK, but any divergence on regulations could also impact on Scotland. The AI strategy from the Scottish Government has little to say about risk, but it endorses one of the Organisation for Economic Co-operation and Development’s principles, which is that potential risks should be continually assessed and managed. Will the minister tell us what specific actions the Scottish Government is taking to systematically carry out such risk assessment? When will it publish a breakdown of what risks have been identified, how they are being managed and what the implications are for regulation?

Richard Lochhead

Patrick Harvie raises a number of important points. First and foremost is the point about the balance between addressing the risks of AI and capturing its massive benefits at the same time. That should be reflected in regulation. As he says, it is also important that we guard against divergence from EU regulation, given that many of the companies in this country export to the EU. We have a UK Labour Government that is making targeted interventions to address the AI risks, whereas the EU has taken a much more comprehensive approach to the issue. I assure Patrick Harvie that we in Scotland are refreshing our AI plan and we will take his valid points on board.

Liz Smith (Mid Scotland and Fife) (Con)

Is the Scottish Government, together with its UK partners, giving any consideration to concerns around the misinformation that AI can contribute to, in terms of undermining democracy and elections across the world in particular?

Richard Lochhead

Liz Smith raises a very important point, which we—and I personally—have raised time and again with successive UK ministers, including the ministers in the new UK Government. One of the issues of concern to the Scottish Government is that, although the UK has tended to talk about the long-term frontier threats of AI, that has come at the expense of talking about and addressing the short-term risks of misinformation, deepfake images, or other more immediate threats that the public and business community, which want to use AI in a way that can be trusted, are very concerned about. That is a point that we are conveying to the UK Government.


Net Zero Sector (Economic Contribution)

7. Evelyn Tweed (Stirling) (SNP)

To ask the Scottish Government, as part of the development and delivery of its economic strategy, what assessment it has made of the contribution of the net zero sector to the economy. (S6O-04486)

The Deputy First Minister and Cabinet Secretary for Economy and Gaelic (Kate Forbes)

The Scottish Government set out the opportunities from net zero in its green industrial strategy. The strategy’s mission is to ensure that Scotland realises the maximum possible economic benefit from the opportunities created by the global transition to net zero. The strategy focuses our efforts and resources on specific opportunities, based on an assessment of Scotland’s likely sources of comparative advantage in the net zero economy.

Evelyn Tweed

The development of carbon capture and storage, through the Acorn project, for example, will form an important part of our net zero journey. Given that the United Kingdom Government is yet to approve the Acorn project, will the Deputy First Minister outline any on-going discussions between both Governments?

Kate Forbes

The importance of the Acorn project for Scotland’s net zero commitments and economic ambitions cannot be overstated, and the continued delays from the UK Government are not helping. I note that Aberdeen and Grampian Chamber of Commerce, with support from MSPs in the Parliament, has today raised concerns about jobs, energy security and future investment, all of which is being put at risk by the fact that the UK has not taken a positive decision on Acorn. The First Minister and the Acting Cabinet Secretary for Net Zero and Energy have both recently engaged with the Prime Minister and the Secretary of State for Energy, Security and Net Zero on the urgent need for a positive decision on Acorn. Scottish carbon capture has suffered two decades of broken promises at the hands of various iterations of the UK Government, and it is time for the UK Government to finally come good on its promises.


South Scotland (Investment in West of Region)

To ask the Scottish Government what action it is taking to invest in the west of the South Scotland region. (S6O-04487)

The Minister for Employment and Investment (Tom Arthur)

The Scottish Government is investing in a number of actions that will deliver economic growth across the South Scotland region. Those include our £180 million investment across the Ayrshire and Borderlands growth deals. The deals allocate a budget of over £29 million in 2025-26 to South of Scotland Enterprise to promote business growth, and they commit to a total spend of £15.5 million through the regeneration capital grant fund to deliver nine projects in Dumfries and Galloway and four projects in South Ayrshire. All of that demonstrates the Government’s commitment to driving growth and regeneration in our cities and regions.

Sharon Dowey

With the Ayrshire growth deal, businesses want to invest and to provide high-paying jobs in the area. There are also developers who want to build good-quality housing, which would provide accommodation for high-skilled workers, but poor infrastructure across Ayrshire is blocking investment by those businesses and housing developers. The A77 is the slowest A road in this country. The block is all too evident at critical junctions such as the Monkton, Dutch House and Bankfield roundabouts, not to mention the Bellfield interchange. What action can the Government take to work with local authorities to improve infrastructure and unlock the economic potential of the region?

Tom Arthur

Along with net zero, housing and infrastructure, three of the key priorities where the Government has committed to driving forward investment, the member also highlights the critical importance of transport in enabling opportunities to be realised. I reassure the member that the Scottish Government is absolutely committed to continue working with growth deal partners to identify workable and deliverable solutions to support investment opportunities. To that end, I would be more than happy to have further engagement with the member and with local partners on the matter.

The Deputy Presiding Officer

My apologies to those whom I was not able to call. We are tight for time across the afternoon.

That concludes portfolio questions on Deputy First Minister responsibilities, economy and Gaelic.


Finance and Local Government

The next portfolio is finance and local government. There is a lot of interest in asking supplementary questions, so we will need more brevity in both questions and responses.


Local Services (Motherwell and Wishaw)

To ask the Scottish Government how the Scottish budget 2025-26 will improve local services in Motherwell and Wishaw. (S6O-04488)

The Cabinet Secretary for Finance and Local Government (Shona Robison)

The Scottish budget for 2025-26 focuses on laying the foundations for Scotland’s long-term success and for directly addressing the priorities of the people of Scotland, including those who live in Ms Adamson’s constituency. The budget delivers £890.2 million for North Lanarkshire Council as part of the record £15.1 billion that is made available through the local government settlement. That record funding will help to ensure that people across Scotland, including those in Motherwell and Wishaw, continue to receive the high-quality local services that they expect and deserve.

Clare Adamson

The Scottish Government’s number 1 priority is the eradication of child poverty, and local services and front-line organisations are integral to that aim. Does the cabinet secretary agree that the United Kingdom Government’s decision to hike employer national insurance contributions, along with the Chancellor of the Exchequer’s brutal cuts to social security that were announced today, will have a devastating impact on Scottish finances, on local and front-line services and on third sector organisations, and that they will have an impact on vulnerable people in my Motherwell and Wishaw constituency?

Shona Robison

It is clear that the increased employer national insurance contributions will have a damaging effect on the funding that is available for public services, including those that are delivered by the third sector. At the same time, the compound impact of the decisions to cut the winter fuel payment, to freeze local housing allowance rates and to continue with the previous Government’s welfare reforms can only increase demand for those services.

We are still digesting the impact of the chancellor’s statement today, but there is a clear threat that the repeated attacks on some of the most vulnerable members of society risk creating a vicious cycle of reduced funding and increased demand. We have had confirmation from the Treasury that there will be cuts to our block grant from the welfare cuts from 2026-27 onwards.


Spring Budget Revision (Impact of IFRS 16 Changes on Discretionary Funding)

2. Kenneth Gibson (Cunninghame North) (SNP)

To ask the Scottish Government what the impact will be on discretionary funding in the current financial year of the international financial reporting standard 16 changes outlined in its spring budget revision. (S6O-04489)

The Cabinet Secretary for Finance and Local Government (Shona Robison)

The IFRS 16 changes will negatively impact on our available discretionary funding this year. Changes in the profile of leasing requirements against original plans require additional budget cover. In contravention of the agreement with His Majesty’s Treasury that the transition period should be budget neutral, the full additional budget cover has not been provided, so we have no option but to manage the shortfall within our overall funding envelope. The difference between the funding provided by HM Treasury and the budget requirement in the spring budget revision resulted in an increased funding gap of £9 million for resource and £40 million for capital.

Kenneth Gibson

Does the cabinet secretary agree that it is shocking that this bureaucratic change has enabled a Labour-led UK Treasury to deprive Scotland of £49.2 million—£8.9 million of resource and £40.2 million of capital—this year? The original arrangement was for the Treasury to provide ring-fenced budget cover. Clearly, however, that has not happened. Can the cabinet secretary advise the Parliament what discussions are taking place with her UK counterparts about the level of funding that should be baselined into our budget as we move into 2025-26 and beyond?

Shona Robison

As Kenny Gibson said, it is shocking, and it is contrary to HM Treasury’s stated position that this technical change should be budget neutral. Despite my frustration about that, I have now moved on to focusing on securing fair treatment as we move beyond the transition period. From 2025-26 onwards, the funding will not be ring fenced, but will be baselined into the block grant. I have repeatedly raised that issue with the chief secretary, and my officials are working to ensure that the upcoming spending review will fairly reflect the future budgetary impact that will arise as a consequence of the continued application of IFRS 16.

Alexander Stewart (Mid Scotland and Fife) (Con)

Without clear adjustment, discretionary funding in capital figures risks appearing stable or even increased when the reality is that it is being artificially inflated. That undermines transparency and hampers scrutiny of the Scottish Government’s investment record. Will the cabinet secretary provide spending figures that are published on a like-for-like basis? If she does not do that, it can confuse Parliament and mislead the public.

Shona Robison

Far from doing that, I say to Alexander Stewart that we took on board the comments of the Finance and Public Administration Committee and changed the budget comparisons to meet its requirements. We did so in order to provide that additional transparency, which has received acknowledgement from a number of independent stakeholders and commentators, and we will continue to do that.


Planning Applications (Support for Local Authorities)

To ask the Scottish Government what action it is taking to support local authorities with managing planning applications (S6O-04490)

The Minister for Public Finance (Ivan McKee)

The Scottish Government is taking a range of actions to boost resources, skills, proportionality and long-term resilience in planning. We recently increased planning application fees, and a further increase will follow this summer, putting more money into local authorities. Scotland’s first planning hub is providing direct support to authorities. We also fund the national planning improvement champion, who is working directly with local authorities. Through our future planners programme, we are directly recruiting graduates, and we are trebling the number of bursaries that we offer. Last week, I launched the national planning skills commitment plan, which involves cross-sector commitments to improve skills and resources across planning.

Oliver Mundell

Processing planning applications takes up significant resources, especially for smaller rural authorities. Despite those commitments on planning and development, net expenditure by local authorities was more than 30 per cent lower in 2023-24 than it was in 2013-14. We do not have to look very far to find damaging delays that are holding back growth, particularly in the rural economy. What work is the minister doing to review the work of local authorities and ensure that there is consistency across Scotland?

Ivan McKee

We are delighted to work with the national planning improvement champion and his team in the Improvement Service. The Scottish Government funds part of that work, which is focused on working with local authorities through peer-to-peer review, identifying best practice, supporting linking up so that authorities can learn from one other, and helping them to improve their processes to be the best in class.

Through the planning hub, which is focused on housing, the Scottish Government is working initially to identify stalled sites and where we can provide extra resource and expertise to unlock opportunities across the country—particularly, it must be said, in the local authorities that Mr Mundell identifies, which might not have as much resource in the planning team as other, larger authorities have.

I will allow a couple of supplementary questions, but they will need to be brief.

Fulton MacGregor (Coatbridge and Chryston) (SNP)

Can the minister outline how the recently launched national planning skills commitment plan, which he referred to, is set to support our next generation of spatial planners and equip them with the skills that they will need to make efficient planning decisions and overcome many of the challenges that Scotland’s communities face?

Ivan McKee

Our national planning skills commitment plan, which I was delighted to launch in Govan in the past two weeks, is intended for people of all age groups and career stages. Immediately post launch, in recognition of the clear need for efficient planning decisions, we made it a priority of the first workshop to focus on the art of processing planning applications for our next generation of young planners.

We intend to roll out more hands-on learning in the future to respond to demand, and the commitment plan has been designed to ensure that we work to address the different and emerging skills needs of all planners. It is great to see so many young planners coming forward, who can look forward to a very fulfilling career in the profession.

Katy Clark (West Scotland) (Lab)

A number of my constituents have got in touch with me to raise concerns about sub-audible sound noise pollution caused by wind turbines. Does the Scottish Government plan to issue guidance to local authorities regarding the siting of wind turbines and the potential health issues associated with living in close proximity to turbines?

That subject is slightly off the topic of the substantive question, minister, but you may respond if there is anything that you think it would be useful for you to add.

Ivan McKee

I do not know exactly what guidance is in place, but I am sure that there is already guidance in place with regard to the siting of wind farms. If the member wants to clarify precisely what guidance is in place on the specific issue that she raised, I will be happy to meet her separately on that.


Edinburgh (Financial Pressures)

To ask the Scottish Government when ministers last met with the City of Edinburgh Council to discuss the reported financial pressures facing the capital. (S6O-04491)

The Cabinet Secretary for Finance and Local Government (Shona Robison)

The Scottish Government continues to meet the Convention of Scottish Local Authorities and individual local authorities on a regular basis to cover a range of topics, including current and future budget pressures.

Miles Briggs

The City of Edinburgh Council receives the lowest level of funding per head of population, yet it has the highest pupil teacher ratio in Scotland. As a result of the United Kingdom Labour Government’s decision to change VAT on independent schools, we are already seeing data that shows an increase in the number of pupils who are entering the state sector.

The cabinet secretary mentioned COSLA. What plans do the Government and COSLA have to review the funding formula to ensure that it keeps pace with potential increased school rolls here in the capital?

Shona Robison

In 2025-26, the City of Edinburgh Council will receive more than £1 billion to support day-to-day services. That is an extra £60 million, or an additional 5.9 per cent, compared with 2024-25. The council will also get an additional capital allocation and support to help it to meet the costs of employer national insurance contributions.

Miles Briggs asked about the funding formula. I am sure that he will be aware that any funding formula has to be agreed within COSLA. That is challenging when there are 32 local authorities, which often have their own interests. The fact that they do not always have the same interests can make the process very challenging.

We cannot impose a funding formula. Were we to do so, that would be received very badly by local government. It will be for representatives of the City of Edinburgh Council to persuade their COSLA colleagues of the need for any changes to the funding formula.

Sarah Boyack (Lothian) (Lab)

I refer members to my entry in the register of members’ interests.

We know that there is a housing emergency in Edinburgh and that there are huge pressures on the health and social care budget. At what point will the cabinet secretary acknowledge that the huge increase in the population of, and the pressures on, Edinburgh are not going away and that our constituents are being let down by the Government?

Shona Robison

In order to support the affordable housing supply programme, we provided a massive increase in the capital allocation for affordable housing in the budget, which Sarah Boyack did not vote for. We also provided a massive increase in funding for health and social care.

That is not to say that there are no challenges in social care—we absolutely acknowledge that there are challenges. The Edinburgh health and social care partnership has been making good progress on delayed discharge. There was real concern about the situation on delayed discharge in Edinburgh, compared with the situation in other local authority areas, but there has been a significant improvement in that regard.

The funding behind all of that is important, which is why the Parliament supported the provision of such funding.


Rural Affordable Homes for Key Workers Fund

5. Christine Grahame (Midlothian South, Tweeddale and Lauderdale) (SNP)

To ask the Scottish Government how much it has allocated in its budget to fund applications to the rural affordable homes for key workers fund, including from housing associations where there have been housing stock transfers from a local authority. (S6O-04492)

The Minister for Public Finance (Ivan McKee)

The Scottish Government has committed up to £25 million as part of the affordable housing supply programme from 2023 to 2028 to support the acquisition of homes in rural communities for key workers. To date, more than £4 million has been committed to support the acquisition of 26 homes, including the acquisition of six homes at a cost of more than £1.3 million in the Western Isles, where the local authority is a stock transfer authority.

Local authority and registered social landlord partners have identified the potential for a further 40 homes to be acquired, and Scottish Government officials continue to actively work with them to maximise the use of the fund.

Christine Grahame

I do not want to disappoint the minister about “actively” communicating. As we know, the issue of recruiting key workers to rural areas is not new. I was a key worker in a rural area in the 1960s when I moved to a key workers’ house in Galloway as a schoolteacher. However, neither of the councils in my constituency—Midlothian Council and Scottish Borders Council—seem to be aware of the fund. I therefore ask whether it can be given more publicity and made much more accessible, as the councils simply do not know about it.

Ivan McKee

I congratulate Christine Grahame on using this platform, because the many people who are watching the live stream of the Parliament’s proceedings will now be very much aware of the fund. I confirm that up to £21 million is available over the next three years to support this demand-led fund. It is available to local authorities and registered social landlords for the purchase of suitable properties where there is identified need. I encourage MSPs to promote the use of the fund locally. The rural housing and islands housing funds continue to be available for other organisations, including community organisations, to acquire homes to meet local demand.


Strathclyde Partnership for Transport (Funding)

To ask the Scottish Government how much it has allocated in its budget for revenue and capital funding for Strathclyde Partnership for Transport for 2025-26. (S6O-04493)

The Cabinet Secretary for Finance and Local Government (Shona Robison)

I am pleased that the 2025-26 budget was agreed to on 25 February. That has allowed for general capital grant funding to be reinstated to the SPT, with £12.4 million to be allocated from the finance and local government portfolio. Additionally, the budget allocated £617,025 in revenue grant funding for the SPT from the transport portfolio. Moreover, £25 million is allocated to the Glasgow subway modernisation programme in capital funding from the transport portfolio.

Neil Bibby

The SPT concessionary travel scheme has provided discounted rail travel to older people in Strathclyde for many decades. However, due to the scheme’s underfunding, those people are facing huge hikes in their rail fares from the start of April. For example, a return from Paisley Gilmore Street station to Glasgow Central station will rise from £1.50 to £3.75, which is a staggering 150 per cent increase. I am sure that we would all agree that that level of increase is too high. Given that budgetary pressures have been stated as the reason for the increase, will the cabinet secretary consider what support the Scottish Government can give to the SPT and local councils to reduce the eye-watering hikes?

Shona Robison

One of the budgetary pressures that is impacting on the SPT is the additional £488,000 that it will be charged each year from the hike in the employers’ national insurance contribution. That will not help the SPT’s position. We have supported the SPT and other organisations with budgets to ensure that they can provide the services that they are required to provide. I will ask Fiona Hyslop, the Cabinet Secretary for Transport, to reply to Neil Bibby on the specific point about the concessionary travel scheme fare issues.

Paul Sweeney (Glasgow) (Lab)

A contractual commitment of around £70 million remains outstanding on the Glasgow subway modernisation project, with the key milestone of achieving unattended train operation due by quarter 3 of 2026. Will the Scottish Government commit to ensuring that all capital works will be fully funded to achieve that milestone?

Shona Robison

By the end of 2023-24, the Scottish Government will have contributed £171.9 million towards the subway modernisation programme. We have been working with the SPT on the issues. I will ask Fiona Hyslop to respond to Paul Sweeney on the specifics around the £70 million.


Edinburgh Third Sector Grant Programme

7. Jeremy Balfour (Lothian) (Con)

To ask the Scottish Government what discussions the finance secretary has had with ministerial colleagues regarding the allocation of additional funding for health and social care, in light of the Edinburgh integration joint board’s reported plans to end funding for its third sector grant programme. (S6O-04494)

The Cabinet Secretary for Finance and Local Government (Shona Robison)

We understand the pressures that are faced and have invested a record £21.7 billion in health and social care in 2025-26, which includes almost £2.2 billion for social care and integration, increasing investment by £1.2 billion since 2021-22. On top of that, our budget makes a record £15 billion available for councils for 2025-26. However, it is important to note that it is for local authorities and national health service boards to work with their health and social care partnerships to ensure that the appropriate social care support services, including third sector support, are in place.

Jeremy Balfour

Many vulnerable groups are negatively impacted by the cuts, including families living with Huntington’s disease, which is a hereditary and currently incurable neurological condition. Edinburgh is served by Huntington’s disease specialists employed by the Scottish Huntington’s Association, who proactively support patients and carers in the community with a view to preventing crisis situations from arising. That service might go.

Does the cabinet secretary agree that cutting preventative spending such as that is short sighted and a false economy? Will she work with me and all stakeholders to ensure that that extremely worrying prospect does not come to pass?

Shona Robison

As I understand it, the Edinburgh integration joint board has been discussing those issues. With engagement between officers and third sector organisation representatives, there has been an agreement to extend the existing grants to at least the end of June.

Like Jeremy Balfour, I very much recognise the role of the third sector in the delivery of social care services. It is a cost-effective way of delivering social care services. Ultimately, those are local decisions, but the funding that we have put in place should ensure that the third sector can continue to provide those vital services.

Ben Macpherson (Edinburgh Northern and Leith) (SNP)

I appreciate what the cabinet secretary says, but many of the third sector organisations that face potential reductions after June, such as the Cyrenians, the Ripple Project and the Pilmeny Development Project, do valuable prevention work that serves or is based in my constituency. Therefore, I would be grateful if the Scottish Government would consider undertaking additional engagement with other parties involved about the longer-term impact of those potential reductions, were they to happen after June. Those organisations do remarkable preventative work.

I am happy to ask my health colleagues to engage with Ben Macpherson on the matter, because we all recognise its importance.


Visitor Levy

To ask the Scottish Government what ongoing assessment it is undertaking regarding the impact of the visitor levy. (S6O-04495)

The Minister for Public Finance (Ivan McKee)

The Scottish Government continues to engage regularly with the tourism sector and local government, particularly councils that have agreed to explore introducing a visitor levy. In addition, we are working closely with VisitScotland to establish a series of discussions with stakeholders to hear their views and to inform the implementation of the levy.

The legislation requires a national review of the visitor levy within three years of the first scheme being introduced. We would ensure that that assesses the impact on businesses and communities.

Jamie Halcro Johnston

I opposed the visitor levy legislation as it passed through the Parliament, and I oppose its implementation by local councils in my region. The levy is a tax on visitors, but it is also a tax on the wider tourism sector, local businesses, local communities and even people visiting family and friends in hospital.

At the Economy and Fair Work Committee last week, I was told that Ivan McKee is engaging with the tourism sector to see whether anything can be done on the visitor levy legislation. It is not even a year since it was passed and it appears that the Scottish Government is having to try to make that bad legislation slightly less bad. Does that not just prove that the Scottish National Party got it wrong in the first place?

Ivan McKee

It is not surprising that yet another Tory member is standing up and calling for a reduction in funding to local authorities while, probably in their next breath, other Tory members—or perhaps even Mr Halcro Johnston himself—will be standing up and asking the Government to provide more funding to local authorities. The lack of consistency and the level of economic illiteracy across the Tory benches is again on display this afternoon.

On the specifics of the visitor levy, as I have indicated, the Government is absolutely committed to working with the grown-ups in the room, as well as the sector, local authorities, Transport Scotland and others who recognise that a levy is the right step to take to raise more money to support the tourism industry, to work through challenges and to determine the best way to implement the scheme so that it works for everybody.

Beatrice Wishart (Shetland Islands) (LD)

I have raised this matter previously, yet it is still unclear whether patients travelling to different parts of Scotland for national health service treatment will be impacted by the visitor levy. What assessments has the Scottish Government made of the impact on patients who are travelling for necessary treatment? In the interests of fairness and equity of access to healthcare, will a national exemption be considered?

Ivan McKee

There are clearly some exemptions in the legislation, but the specifics on implementation are for local authorities to address through the consultation process that the legislation requires them to take forward in their local area to find a scheme that is suitable for their local circumstances.

I apologise to those whom I was unable to call to ask supplementary questions, but we are tight for time this afternoon.