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The Council of Economic Advisers has met virtually on a number of occasions since the start of the COVID-19 pandemic. Members calls with officials took place on 8 June 2020, 1 September 2020 and 11 December 2020. A full meeting was held on 29 October 2020 with the attendance of the Cabinet Secretary for Economy, Fair Work and Culture and the Cabinet Secretary for Finance. A further full meeting of the Council was held on 4 March 2021, with the attendance of the First Minister and the Cabinet Secretary for Economy, Fair Work and Culture. Minutes of these meetings will be published on the Scottish Government website.

Arrangements are being put in place to establish the new Council for Economic Transformation, which will shape and drive our 10 year National Strategy for Economic Transformation. We have already publicly committed to do this within the our first 100 days and we will update with regard to progress, including how it interacts with other advisory groups such as the Council for Economic Advisers, shortly.

As of 28 May, £3,028,000 has been paid through Exclusive Use and Large Self Catering Grants to 1,434 businesses. Please see the most recent business support management information: Coronavirus (COVID-19): business support management information - 11 June 2021 - gov.scot (www.gov.scot) . While this figure does not currently allow breakdown of the exclusive use and large self-catering grants, the most recent figures from 30 April, when £2.89 million had been paid though Exclusive Use and Large Self Catering Grants showed that the majority of this sum had been allocated to large self-catering properties £2.69 million, while the remainder went to exclusive use properties £0.2 million). Please see - Coronavirus (COVID-19) Strategic Framework: Business Support Funding Statistics (Tranche 6) and other local authority support schemes - gov.scot (www.gov.scot)

We understand that household meeting restrictions to mitigate transmission risks continue to pose challenges for many businesses across Scotland. The Scottish Government sought to help businesses build greater resilience by making available Restart Grants. On 22 March recipients of support under the Strategic Framework Business Fund received a final 4 week payment, followed by a combined final payment of a further 2 weeks closure support and a one off restart grant. Hospitality and leisure businesses in receipt of the Fund were eligible for grants up to £19,500 based on their rateable value. The restart grant was also awarded to small accommodation providers paying the council tax fund, already registered for support payments under SPA-CTF.

In addition, the Scottish Government will provide 100% rates relief for retail, hospitality, leisure and aviation businesses for entirety of this financial year.

A public consultation into the advertising and promotion of Nicotine Vapour Products (NVPs) will begin this Autumn. The consultation was postponed due to the pandemic and will cover views on potentially introducing Scotland wide restrictions on the advertising, promotion, brandsharing and sponsorship of these products.

The construction of the A77 Maybole Bypass project is progressing well and is anticipated to be complete in winter 2021 as confirmed in the Infrastructure Investment Plan update published in December 2020.

This date is subject to any further impacts of the pandemic and unforeseen circumstances such as the effects of exceptional weather.

The availability and reliability of broadband by each mode of public transport is summarised in the following table:-

The cost incurred due to disruptions, including potential charter of any additional tonnage, if available, would depend on the time over which vessels were chartered for and under which conditions. We are actively exploring opportunities for chartering additional tonnage, including consideration of the suitability of MV Pentalina to increase resilience across the network. In addition, we have also confirmed new investment of £580 million in ports and vessels to support and improve Scotland’s ferry services over the next five years, as part of our wider infrastructure investment plan.

The timetable impact of the breakdown of the MV Loch Seaforth is summarised below:

The MV Loch Seaforth was removed from service on 14 April and other vessels were redeployed to ensure continuity of service across the network.

CalMac were unable to charter any suitable vessels at short notice, meaning re-deployment of a vessel from within the current fleet was required. The MV Isle of Lewis was redeployed from Castlebay-Oban to cover daytime Stornoway-Ullapool sailings, and the MV Isle of Arran redeployed from Ardrossan-Brodick to cover the overnight freight service. The MV Lord of the Isles provided a combined Castlebay-Oban-Lochboisdale-Mallaig service. The MV Isle of Arran subsequently incurred a technical issue and was swapped with the MV Hebridean Isles on the Kennacraig-Islay service, maintaining Islay’s two vessel service and a dedicated freight service for Ullapool-Stornoway, with the Ardrossan-Brodick service reduced to a single vessel service and delayed the start of the summer only Ardossan-Campbeltown service which shares a vessel with Ardrossan-Brodick. Some additional capacity for Arran was provided by deploying a second vessel, MV Loch Linnhe, to the Lochranza-Claonaig service. These changes resulted in revised timetabling for the affected routes. CalMac operated additional sailings where possible, however this was restricted by crew hours and availability.

MV Loch Seaforth resumed full service on Stornoway-Ullapool on the evening of 31 May. All services were back to normal with their usual vessel deployment on 3 June.

We are aware of the significant impact on communities and businesses throughout this unacceptable period of service. This includes impacts on island producers, tourism and haulage businesses across the network. As I have stated to Parliament, we are looking at all options to provide greater resilience to minimise disruption during any future prolonged periods of disruption – as well as ensuring any lessons are learned that prevent further breakdowns where these could be avoided.

(a) Scottish Government normally meets railway trade union representatives as part of the routine STUC meeting cycles to discuss any issues at hand. However due to Covid these meetings have not taken place in the normal manner. Arrangements for a meeting with railway trade union representatives are now being made.

(b) Individual matters in relation of the Dignity and Respect policy are for Abellio ScotRail and the employee(s) concerned.

We understand that a proportion of self-catering businesses, which are larger (7+) and rely on multiple households sharing continue to face challenges in trading due to household restrictions. We worked closely with the sector in order to produce tailored grant support for large self-catering businesses and exclusive use properties as well as targeted support for businesses who pay council tax via the small accommodation providers council tax fund. We have engaged regularly with the sector throughout the pandemic to understand operating conditions and to develop support to mitigate the impacts of COVID-19 restrictions. We have regular dialogue with the STA, the ASSC and STERG and will continue to review areas that may need further support on an ongoing basis as we progress through the levels framework, in particular to those sectors which are subject to greater constraint.

Network Rail is on track to meet our innovative growth target for rail freight. Despite the health pandemic, rail freight demand has held up well and 216 new freight trains ran on the network in Scotland in the past 12 months. Supported by Scottish Government and third party investment more new freight services in Scotland are planned in the next 18 months, in addition to new cross border express logistics services. Modal shift to rail will play a key part in decarbonising the overall transport network to meet our ambitious climate change targets.