Seòmar agus comataidhean

You have led me on to my next area of questioning. It struck me that £15 million is a relatively low figure for entrepreneurialism, given the figures that were bandied about before the 2021 election. I appreciate that, as you said earlier, it is still early days but, given the new deal for business, and Mark Logan and Ana Stewart’s very good report on encouraging female entrepreneurship, what is your sense of there being a relentless focus on enabling more than half of our population?

Okay.

A concern raised about the previous financial memorandum was the ability to scrutinise detail, given that it is a framework bill. How will the new approach of evolution rather than revolution, as set out by the convener, alleviate and mitigate them? What new risks will it introduce?

Despite the Scottish Government’s protestations of continued focus, to what extent, if any, will the lack of confidence inevitably flow into funding flows, given the nature of how those operate out of the city? Is that lack of confidence inevitable, meaning that change in funding flows will take place, despite the Scottish Government’s protestations that it will continue on the path that it has set out?

I thank the witnesses for a very engaging session thus far. I want to ask about artificial intelligence. They say that AI is like quantum physics: if you claim that you understand it, you are merely proving that you do not. I note Professor Hayward’s recommendation 12 for the Scottish Government to establish a cross-sector commission on AI urgently. Do you agree that it is vital that industry and academics, as well as practitioners and Government, are involved in that? Will you set out briefly what key themes you would like to see evaluated? The nub of my question is this: is there, in your opinion, a risk that some of the known issues with AI, particularly cheating, could push people back into teaching to the exam to alleviate said cheating rather than embracing the much wider perspective that you have outlined this morning?

On that point, do you think that the fact that you even had those two facets indicates that there is still a relatively low level of awareness, regardless of whether it is among Government or wider practitioners, of exactly what the threats and the opportunities are of artificial intelligence?

Good morning, and thank you for joining us. I have a question for the whole panel. Arguably, it is a framing question. I am a member of the Finance and Public Administration Committee, so I am interested in the specifics of how the process for the Verity house agreement will work. To frame that, Scottish Government financing is deeply affected by the late decision making of the United Kingdom Government. You may have seen the recent letter from the Welsh Government complaining about the late UK autumn statement. That has also had an effect on the Scottish Government—the statement has been pushed back to 22 November, which makes the original planned budget date of 14 December unrealistic.

What is your understanding thus far of how the financial elements will work in the context of the flow-through and late decision making and processes of the UK Government? Anyone can go first. Perhaps Dr Hutchison might like to do so, but I know that Carrie Lindsay and Kirsty Flanagan will have an interest.

Okay. Carrie, you can have the final comment on that.

Thank you.

I think that that is commonly understood. It came up in yesterday’s Finance and Public Administration Committee meeting that, largely, the UK Government has been working to a one-year budget process, which flows through to the Scottish Government. I do not want to put words in your mouth, but it sounds to me as though, in the strategic review group’s understanding of the detail of both of those things, it is still fairly early doors. It is not just about the initial budget settlement; it is about in-year changes, of which we have seen quite a few, that affect and could have an impact on ring fencing, because there is a lack of visibility and transparency in relation to money coming through. Am I putting words in your mouth?

I will bring in Professor Heald in a moment. Professor Bell made a comment about productivity. Surely there is a link between that and the limitations in capital borrowing powers, which are a critical way for the Scottish Government to improve productivity. Is there not a direct link between that pretty significant limitation and productivity?