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In an extremely challenging financial climate, and following a worst case scenario UK Autumn Statement in which UK Ministers prioritised tax cuts over public spending, we have had to take difficult decisions in setting this budget. The amount Scotland has available to spend is still largely driven by the block grant, which is derived from the UK Government's spending decisions and continuing constraint on public expenditure. The block grant has fallen by 1.2% in real terms since 2022-23 and, because of the UK Government's failure to inflation-proof capital budgets, our capital spending power is due to contract by almost 10% in real terms over 5 years.

Despite this, I am pleased that this Government has committed £4.7 billion in capital and resource in 2024-25 for activities that will have a positive impact on delivery of our climate change goals, and funding of almost £3.9 billion for transport across Scotland. The total budget for my portfolio increases by £47.7 million in 2024-25, which is a £27.9 million (0.6%) reduction in real terms using GDP deflators published in November 2023.

A significant proportion of the expenditure in my portfolio is legally and contractually committed, and I have ensured that those commitments are met in full in this budget as well as allocating funding to support critical maintenance and renewal expenditure to ensure that the people of Scotland have access to a safe and reliable transport system.

I have considered equalities and fairer Scotland duties and progress towards our statutory targets for climate change and child poverty in prioritising the budget available to me. I refer to the Equalities and Fairer Scotland Budget Statement and Carbon Assessment published alongside this budget.

In an extremely challenging financial climate, and following a worst case scenario UK Autumn Statement in which UK Ministers prioritised tax cuts over public spending, we have had to take difficult decisions in setting this budget. The amount Scotland has available to spend is still largely driven by the block grant, which is derived from the UK Government's spending decisions and continuing constraint on public expenditure. The block grant has fallen by 1.2% in real terms since 2022-23 and, because of the UK Government's failure to inflation-proof capital budgets, our capital spending power is due to contract by almost 10% in real terms over 5 years.

Despite this, I am pleased that this Government has committed £4.7 billion in capital and resource in 2024-25 for activities that will have a positive impact on delivery of our climate change goals, and funding of almost £3.9 billion for transport across Scotland. The total budget for my portfolio increases by £47.7 million in 2024-25, which is a £27.9 million (0.6%) reduction in real terms using GDP deflators published in November 2023.

A significant proportion of the expenditure in my portfolio is legally and contractually committed, and I have ensured that those commitments are met in full in this budget as well as allocating funding to support critical maintenance and renewal expenditure to ensure that the people of Scotland have access to a safe and reliable transport system.

I have considered equalities and fairer Scotland duties and progress towards our statutory targets for climate change and child poverty in prioritising the budget available to me. I refer to the Equalities and Fairer Scotland Budget Statement and Carbon Assessment published alongside this budget.

The Scottish Government approach to the bus powers in the Transport (Scotland) Act 2019 ("the 2019 Act") is to empower local transport authorities with flexible tools to enable them to determine what is best to address any transport challenges according to their local needs. Local transport authorities are encouraged to consider the full powers available to them, including partnership work, franchising and local authority run services which sit alongside their ability to subsidise services.

Through the Community Bus Fund we have provided funding to support local transport authorities to explore the options for bus services set out in the 2019 Act and improve public transport in their areas. More details are provided in the answer to question to S6W-24668 on 2 February 2024. 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 .

In addition on 29 January, Transport Scotland officials published an overview of the bus powers available to local transport authorities, which provides an outline of all the powers available to them, and the opportunities they provide to improve local services. The document is available on the Transport Scotland website. Officials continue to engage with local transport authorities and other key stakeholders on the development of detailed guidance to help in their consideration of the franchising and partnership powers. This guidance will be available later this year.

Recent reports of bus service withdrawal have tended to concern commercial routes. The majority of services in Scotland operate in an open de-regulated market and the provision of local bus services is a matter for individual bus operators who use their own commercial judgement on service routes, frequencies and vehicle types.

Under the Transport Act 1985, where there is a social need for particular bus services which are not being provided commercially, local authorities can subsidise these at their discretion. This procedure allows local transport authorities to influence the frequency, routing of services or vehicle types used however this is entirely a matter for the local authority to consider and action.

The "Travel Strategy and Innovation" budget line was not used to fund the Mobility as a Service (MaaS) Investment fund pilots, and will therefore have no impact on the pilots.

The decision to withdraw services is solely a matter for the local council or transport authority to consider and must comply with guidance as set out by the Office of the Traffic Commissioner who is the licensing authority in Scotland. They must give 42 days notice to the Office of the Traffic Commissioner of the cancellation, from the date that the Office of the Traffic Commissioner receives it.

The majority of bus services in Scotland are operated on a commercial basis by private bus companies in the open de-regulated market. Provided an operator registers a service with the Office of the Traffic Commissioner they can set routes, timetables and fares. Commercial viability and patronage on individual routes is considered commercially sensitive information, and is not currently shared with the Scottish Government.

Full guidance on the rules which must be adhered to can be found on the website of the Office of the Traffic Commissioner - Traffic Commissioners for Great Britain - GOV.UK (www.gov.uk) .

Transport Scotland undertakes regular engagement with Transport for London on a range of issues relevant to public transport provision. Transport Scotland has not specifically considered replicating the Transport for London Oystercard Veterans initiative.

The current National Concessionary Travel Scheme provides free bus travel for disabled people, irrespective of the cause of their disability. In addition, in 2021 the veterans rail card was launched, providing discounted rail travel.

The Fair Fares Review has been completed and will be published in the coming weeks. This will provide an opportunity to discuss and debate how to improve Scotland’s public transport system to deliver in a fairer and simpler way, whilst progressing towards achieving our Government’s priorities on equality, opportunity, and community.

There has been no reduction to Scottish Water’s budget. The Scottish Government Budget for 2024-25 sets out that during the financial year, the Scottish Government intends to lend £170m per annum in capital funding and to receive some £105.5m income per annum which is the interest on loans issued to Scottish Water. Across the 2021-27 period Ministers have committed to lend Scottish Water up to £1.03bn. Lending in future years will be agreed in future Budget Acts.

The quoted reduction of £1.1m is for the Water Industry portfolio. This reflects additional income from interest payments made by Scottish Water as well as a reduction in spend on some Hydro Nation activity. The impact is outlined in the answer to S6W-24199.