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That is what we hope we have achieved so far. I know that there is a strong interest in local government in exploring how we can go further. As part of the Verity house process and the commitment to a fiscal framework, we are committed to that engagement and to having those discussions.

Capital projects have been impacted by what we have been through over the past four years, since the onset of the pandemic. We came out of the pandemic into a cost crisis. It is remarkable to think about the last four years: we had a global pandemic—the worst, in fact, for a century; a cost of living crisis; inflation at its highest level since the 1970s; and major conflict on the European continent. Moreover—and you will correct me if I am wrong—we had the Prime Minister whose tenure, the shortest of any in British history, ended with a catastrophic mini-budget. That is the environment that we are operating in.

Some of those factors are global and macroeconomic and not in the gift of any one Government; some are a consequence of situations that have been exacerbated by or which are directly attributable to decisions that the UK Government has taken. That is the context for all capital projects and all investment decisions that have been taken over the last four years. I think that it is extremely challenging, but we are seeking to work our way through that and to be very transparent about how we are doing so.

Perhaps I can clarify this—indeed, I sought to provide an answer to the convener earlier. That increase came about as a result of pay awards, an increase to appointee costs, inflation elements and other operational costs. In other words, it was all about pay and operational expenditure.

Yes, it is something that we monitor carefully. The forecasts are produced by the SFC. We monitor the position carefully both for our end-of-year management and in looking at the longer-term trends.

On the broader point, the issue of those who are not in work due to ill health is topical and was covered in the press today, but it is also something that the Cabinet Secretary for Wellbeing Economy, Net Zero and Energy, Màiri McAllan, touched on recently in a speech in which she recognised the challenge and considered the role that we all have to play right across Government in supporting more people back into the workplace. The social security aspect is something that we monitor in-year and pay very careful attention to. We focus as well on the longer-term trends, and I know that the cabinet secretary is keen to engage on the broader point about labour market activity.

In saying that we are aware of it, I was just addressing the point that we recognise that issue. Of course, we are considering how the Government responds to those trends going forward. The system that we have in Scotland is still quite young. Of course, we will collectively develop our understanding the longer the system is in place and the further it embeds. We appreciate the points that you articulate about long-term sustainability and resource.

Again, this is something that we are carefully considering that will inform decisions that we take on the budget, but it is important to recognise that the support that has been provided through the social security system is invaluable to the individuals who receive it. It is an investment in the people of Scotland as well. It is important when discussing this matter that we recognise the impact for the individuals who receive that support and do not ever allow that to be lost when talking at a high level about numbers. The point that you make ultimately is that we need to be able to meet this expenditure on an on-going basis. That is something that we take very seriously, both from the perspective of public finances and from the perspective of the administration of the social security system directly.

I do not want to risk in any way being perceived as seeking to speak on behalf of the Treasury, but I will ask Scott Mackay whether he can offer some reflections from the experience of officials.

Just before Scott Mackay comes in, I will make the point that we are four weeks or so before the start of the next financial year and we have a UK fiscal event tomorrow. Everything that we know in the Government and, indeed, I think around this table is based on speculation that we will have read in the newspapers. In terms of the overall process, you can understand the challenges. That is just reflective of some of the broader challenges that can emerge in terms of what the UK Government will do. Sorry, you can come back in, Scott.

We almost have to target a level of underspend so that we do not go over, but if we did not land in that space and went beyond 1 per cent—it is slightly more than 1 per cent, given what the reserve represents as a carry-forward—that would be resource or capital that we have lost. It is a challenge and I think and hope that, collectively as a Parliament, we are getting a bit more accustomed to that reality and that, when underspends are reported as part of a provisional return, it is just part of a routine operation of the fiscal framework rather than some suggestion that there has been resource that could and should have been allocated that was not.

Thank you, convener. The Scottish Landfill Tax (Standard Rate and Lower Rate) Order 2024 specifies a standard rate and lower rate for Scottish landfill tax that would apply from 1 April. The rates are consistent with the rates that are set out in the Scottish budget for 2024-25, which was published on 19 December 2023. The order sets out that the standard rate will increase from £102.10 per tonne to £103.70 per tonne, and a lower rate for less polluting inert materials will increase from £3.25 per tonne to £3.30 per tonne. Committee members will wish to note that the rates match landfill tax rates in the rest of the UK for the financial year 2024-25 as confirmed in the UK and Welsh budgets.

The Scottish Government is continuing to act to avoid any potential for waste tourism to emerge as a result of material differences between the tax rates north and south of the border. The increased rates provide appropriate financial incentives to support delivery of our ambitious waste and circular economy targets.

Indeed, the revenue has declined as was forecast, and it will continue to decline as per the policy intent and objectives. As I said in my opening statement, the rationale for the rate being consistent with that of the UK and Wales is to avoid the risk of waste tourism from emerging. That rationale underpins the approach that we have taken with the tax.