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The First Minister met Tony Danker, CBI Director General and Tracy Black, CBI Scotland, Director, on 22 March 2022.During the meeting the following points were discussed:

• The Chancellor’s budget statement which was due the following day;

The First Minister and other Scottish Government Ministers engage regularly with the Federation of Small Business (FSB) Scotland to discuss all issues affecting small businesses.

The First Minister last met representatives of the FSB Scotland on 19 May 2022 at the FSB Celebrating Small Business Awards UK. A discussion with Martin McTague, FSB National Chair and Colin Borland, Director of Devolved Nations at FSB included the importance of small businesses to Scotland's economy, the significant support and work that FSB do in dialogue with Scottish Government and the success of Scottish businesses, including the Scottish 2022 winner at the UK-wide Federation of Small Business Awards.

More recently on 31 August 2022, I met with Stacey Dingwall, Head of Policy for Scotland and Andrew McRae, Scotland's Policy Chair FSB during a visit to Amity Fish Ltd, Peterhead. Issues discussed included business rates, energy costs and skills.

The First Minister chaired a summit with energy suppliers and advice organisations, including Ofgem representatives, on 23 August, at which these matters were discussed at length. The First Minister subsequently wrote to the new Prime Minister, urging that she cancel any further energy price increase for domestic consumers, and work with the regulator and energy companies to put in place the funding to support this, while also underlining the pressing need for additional support for vulnerable consumers.

The UK Government set out a timeline for ambitions to deploy a First-of-a-Kind Small Modular Reactor (SMR) by the early 2030s in their ‘Ten Point Plan for a Green Industrial Future’ and ‘Energy White Paper: Powering a Net Zero Future’ (both published in 2020).

In April 2022, the Office of Nuclear Regulation announced the commencement of Step 1 of the Generic Design Assessment (GDA) for Rolls-Royce SMR Limited’s 470MW Small Modular Reactor design. Due to the complexity and the level of scrutiny required in the GDA process, it is expected to take a number of years to complete, with risks of further delays depending on the quality of evidence returns provided through the process. Rolls Royce estimate that it will then take more than 5 years from the point of approval for the first SMR to provide power on the grid.

The Scottish Government is committed to continue working closely with cities across Scotland in tackling the global climate emergency.

A number of initiatives have been driven forward to support cities in Scotland in helping them work towards net zero ambitions. The Social Housing Net Zero Heat Fund is making £200 million of grant funding available over this parliamentary term to registered social landlords in Scotland, including Local Authorities for the retrofit of existing housing stock.

Earlier this year the Scottish Government published its draft Vision for Scotland’s public electric vehicle charging network and announced a new Electric Vehicle Infrastructure Fund that aims to double the size of the network through £60m of public and private investment.

Over £50 million per annum goes towards the Sustrans managed Places for Everyone programme that funds local authorities to create safer, more attractive, healthier places and increase the number of trips made by walking, cycling and wheeling for everyday journeys.

Although not targeted exclusively at cities, we are aiming to unlock £200m investment from local authorities in low carbon infrastructure through our Green Growth Accelerator and the long term nature of the £5 billion City Region and Growth Deals programme has allowed us to develop and apply international carbon management best practice that will result in significant net zero benefits across and beyond Scotland.

The Scottish Government has provided consistent support for Scotland’s marine energy sector for more than a decade. As a result, Scotland is the most advanced hub in Europe for the testing and demonstration of marine energy technologies and is ideally placed to both shape and benefit from the potential global market for marine energy while helping deliver a net-zero economy.

This support has included the Saltire Tidal Energy Challenge Fund, which provided £3.4 million to Orbital Marine Power to build and deploy the O2 tidal stream turbine and £1.545 million to Simec Atlantis Energy to design, fabricate and install a subsea hub for the MeyGen project in the Pentland Firth. This support enabled both Orbital Marine Power and Simec Atlantis Energy to benefit from the recent introduction of ring-fenced support for tidal stream energy projects in the UK Government’s Contracts for Difference (CfD) scheme. In addition, the Scottish Government has, since 2014, invested almost £50 million in Wave Energy Scotland and continues to support this internationally renowned programme, which has made significant progress in driving the development of wave energy technology towards readiness for commercialisation.

The Scottish Government will continue to engage with the marine energy industry in Scotland and is committed to supporting the further development of the sector.

An analytical exercise, such as the one suggested, would be a significant undertaking and come at a large cost to the taxpayer. As it has been a long standing policy of the Scottish Government not to support the construction of any new nuclear power stations in Scotland, under current technologies, any such analysis would not be value for money and has not been pursued.

The Scottish Government is committed to working with the energy sector and continues to provide support in a number of ways. For example:

• £5 million provided through the Saltire Tidal Energy Challenge Fund to support tidal energy innovation and deployment.
• £18.25 million funding to support the current Wave Energy Scotland technology programme, the biggest wave energy technology development programme in the world.
• £10 million hydrogen innovation scheme under the Emerging Energy Technologies Fund, which will focus on innovation in hydrogen production, storage and distribution technology.
• £75 million Just Transition fund to support the energy sector, including testing and promoting emerging technologies such as EV battery recycling technology, offshore green hydrogen and commissioning.

The Scottish Government has provided consistent support for Scotland’s marine energy sector for over a decade. As a result, Scotland is the most advanced hub in Europe for the testing and demonstration of marine energy technologies and is ideally placed to both shape and benefit from the potential global marine energy market. We will continue to support the sector as it grows, and Marine Scotland will continue to address evidence gaps through the Scottish Marine Energy Research Programme.

Scotland’s Deposit Return Scheme is an industry-led and industry-funded initiative, consistent with the vast majority of similar schemes across Europe. It is the responsibility of all affected businesses to ensure that they are prepared for the scheme’s launch on 16 August 2023. This includes any loss reserve measures.

In the 2022-23 Programme for Government, the Scottish Government renewed its commitment to explore how to ensure the interests of future generations are considered in decisions made today.

Ministers and officials have been engaging with a wide range of organisations interested in embedding wellbeing and sustainable development principles in decision-making. I have met with several key stakeholders to support this work and will continue to do so in the coming months.

The Scottish Government is considering the case for a Scottish future generations commissioner as part of a package of measures to embed the interests of future generations in the creation and delivery of policy. This may include placing duties on public bodies to account for the impact of their decisions on wellbeing and sustainable development.

This work is being taken forward as part of the development of the Scottish Government’s proposed Wellbeing and Sustainable Development (Scotland) Bill.

We intend to set out more detailed proposals later this year.