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The independent economic regulator, the Water Industry Commission for Scotland (WICS), produces the average charge data in Scotland. In England and Wales, Water UK provides the data to Discover Water. Both average charges are produced independent of water companies and represent the best comparator available.

As set out in the response to S6W-08912, the Final Determination explained that the Commission would expect that its charge caps would allow Scottish Water’s annual revenue in the final year of the current regulatory control period to be no less than £1,392m (as set out in page 10 of the Final Determination). This level of revenue was based on assuming an average charge cap of 1.5% a year above inflation over the regulatory control period 2021-27.

The Final Determination set a maximum amount of charges of CPI + 2% on average for each year of the regulatory control period. As set out in the Final Determination, the difference between the CPI + 2% and the CPI + 1.5% each year on average was to cover any additional costs that Scottish Water incurs in selecting an investment option that has a higher net present value than the lowest financial cost option, after allowing for externalities such as carbon, natural and social capital. This is the allowance of £132m set out in pages 9 and 15 of the Final Determination. This money would only be used where such projects had been thoroughly appraised. The minimum revenue expectation did not take account of this allowance.

We are still modelling potential structures based on updated scheme membership data and plan to engage with the Scheme Advisory Board on these shortly. The previous proposals we consulted on put forward broadly similar rates for lower earners to those in the contribution structure implemented in England and Wales.

When developing the structure, protecting lower earners from large increases in contribution rates is a key driver but has to be balanced against the legal imperative to begin to reduce the very highest rates and flatten the contribution structure. The biggest challenge in comparing against the rates in England and Wales is that there is a bigger yield shortfall to recover in the Scottish scheme, principally due to workforce demographics.

Any large infrastructure organisation that provides an essential service requires significant access to cash to maintain its activities and to respond to unforeseen events. Scottish Water’s cash balances each year are largely a function of when the business borrows from the Scottish Government relative to when capital investments are made; unlike similar infrastructure businesses, Scottish Water does not have access to any other credit facilities. Some of that capital investment will be on projects not delivered in the preceding regulatory period. Furthermore, at any point in time Scottish Water has on-going investment projects and hence has contractual commitments with its delivery partners and it must ensure it has sufficient funds to meet those contractual commitments. At 31 March 2022 Scottish Water had contractual capital commitments of £455.6m and at 31 March 2021 this figure was £541.4m, hence my comments in the Scottish Parliament on 18 May 2022 that Scottish Water's cash balance is ''substantially allocated at any time to investment projects''.

I refer the member to the answer to question S6W-10043 on 24 August 2022. All answers to written Parliamentary Questions are available on the Parliament’s website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers .

£10 million of funding was announced for long COVID in 2021 for a 3 year period, with the first year’s expenditure being £3 million. We will monitor the progress of the initiatives being funded by this investment and use this to inform expenditure in the remaining 2 years to best meet the needs of people living with long COVID.

In 2022-23, funding of £18 billion is provided for the health portfolio. This substantial investment is already benefitting a range of services that are supporting the needs of people living with long COVID.

Around the world, science has begun the work of trying to find an explanation, and treatments, for long COVID. We are investing £2.5 million in 9 Scottish-led research studies through our Chief Scientist Office. These studies aim to improve the understanding of the long-term effects of COVID-19 on physical and mental health and wellbeing in Scotland, and inform clinical interventions to support recovery and rehabilitation.

The Scottish Government along with the BMA and other stakeholders provide evidence to the Doctors and Dentist Review Bodies (DDRB) who make an independent recommendation on pay uplifts for medical and dental staff across the UK.

We take part in this process in good faith and in the knowledge that the DDRB make independent recommendations which can be above or below what participants are seeking. This year, the DDRB have recommended a pay award which we have implemented in full for all Medical and Dental staff.

I announced on 4 October that the Scottish Government would be devolving powers to NHS Boards to utilise local flexibilities within NHS Pension arrangements, and offer ‘pension recycling’. This means NHS Boards will have the ability to assist staff affected by annual and lifetime allowance pension taxation issues. This action is intended to support the retention of staff and support service delivery as we approach winter.

Wider issues relating to pensions are a reserved matter and the power to fully resolve deficiencies with the current system are a matter for the UK Government.

Health boards can take a range of actions in response to any breach of terms by a pharmacy contractor. Community pharmacy contractors are required to meet the Terms of Service as set out in Schedule 1 of the National Health Service (Pharmaceutical Services) (Scotland) Regulation 2009. Should, in the opinion of the Health Board, a community pharmacy contractor breach the Terms of Service, they can consider taking any appropriate action in line with the noted Regulation and the National Health Service (Discipline Committees) (Scotland) Regulations 2006.

The Scottish Government is aware of the impact that the UK Government’s pension annual and life time allowances policy is having on the GP workforce in Scotland. There is limited action we can take to mitigate the impact as issues relating to pensions are a reserved matter. We have written to the UK Government on a number occasions to urge them to take action, and we have highlighted our concerns about the risks to delivering in-hours general practice as well as out of hours services.