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It is a combination of policy and delivery, as you highlight. Sometimes in those areas, the distinction is perhaps not as clear. I do not know whether there is any detail that you want to add, Niall.

Was it the money for colleges and education?

No, we do not, which is why I referred to the general avoidance principles that Laura Parker touched on when she commented on that area. Today, we are considering the LBTT order, which seeks to incentivise development that would not otherwise have taken place—

I would point to our broader programme of infrastructure investment, which has been set out. The committee will recognise the challenges that we face with regard to our capital budget and the challenges of delivering projects due to cost inflation, which is an issue that is not unique to Scotland; it is having an impact right across the UK and in many countries. Therefore, there is that broader framework. Our capital spending will be kept under review with regard to timing and the phasing of what is feasible within the capital that is at our disposal and the cost of projects. Parliament is well versed in that from engaging with specific capital project issues.

With regard to the particular sites of the green freeports, clearly there will be interaction with broader projects such as the example that you cited of the A9. I have already touched on the point about specific local impacts and we will continue to have that dialogue and engagement to understand any issues as they emerge.

I should also note that, for each of the two sites, there is the seed capital funding that I referred to earlier, which will be available once the sites are active and online.

I cannot speak to the commercial decisions or operating arrangements of companies. If companies are operating in a way that is compliant with overall UK tax law and are in a position where they are making an investment, they would be treated just as any other company, depending on how it is constituted—

The important point about the control period is that if development does not take place within three years the relief can be withdrawn. Ultimately, the relief will take place and be utilised only if development takes place on the ground. It is about attracting investment into specific sites and seeking to incentivise and unlock development in sites that would not otherwise see development or—as I said previously—would not be developed to their full potential.

In touching on that point you are colliding with the reality of schedule 5 to the Scotland Act 1998 and the reservation of employment law. For example, we do not have the power to legally require trade union recognition in such contexts. We are trying to work constructively and in partnership with business and other partners to promote fair work. Although the Scottish Parliament does not have the power to legislate in those terms, we have a role, through leadership and the convening power of the Scottish Government, to seek to encourage businesses to adopt such practices. Throughout the process we have been clear about our expectations.

It is incredibly important. A range of material has been published on the UK Government website, setting out various aspects of the criteria. Laura Duffy, do you want to go through what has already been made available and what is forthcoming?

Thank you, convener. Good morning. I congratulate the committee on its award, and I congratulate Michelle Thomson on her award. However, having been in front of the committee several times, I know that praise and flattery will not get me off the hook, so I will get on with the matter at hand.

The Land and Buildings Transaction Tax (Green Freeports Relief) (Scotland) Order 2023 provides for relief from LBTT, in part or in full, for qualifying transactions in a designated green freeport tax site. Green freeports are designed to support businesses to create high-quality and well-paid new jobs. The successful bidding consortia are currently developing business cases that will set out plans to establish hubs for trade, investment and innovation, to promote regeneration and to make a significant contribution to achieving our net zero ambitions.

The Scottish and United Kingdom Governments have made a commitment to deliver a green freeport model that meets the needs of the Scottish economy and offers all the benefits that are available to those who are situated in freeports in other parts of the UK. LBTT relief is offered on that basis. It is part of a package of incentives for green freeports and is designed to be equivalent to the stamp duty land tax relief that is offered to other UK freeports, which will ensure that the overall objective of parity of treatment between freeports and green freeports is met.

The LBTT relief supports the wider programme by encouraging investment in specific tax sites on land that is underdeveloped or undeveloped. The legislation enables businesses to start to benefit immediately from the relief when the tax sites are designated, and the relief will be available for up to five years.

I welcome the evidence that has been submitted by a range of organisations in response to the Government’s call for evidence and the Scottish Government’s consultation on the draft instrument, and I look forward to members’ questions.

As you will appreciate, on the specific point about how individual local authorities choose to engage, it would not be appropriate for me, as a minister, to comment on decisions that are properly for them. Certainly, the Government’s broader approach, both on the development of fiscal economic policy and on wider industrial relations, is to have close engagement with our trade union partners.

I ask Laura Duffy to provide some background on the broader engagement that has taken place in the process of developing the proposal.