Thank you, convener. I welcome the opportunity to discuss with the committee the spending plans that are set out in the Scottish Government’s draft budget 2017-18. I am also happy to cover some of the questions that you have received from members of the public on the budget, including on our tax proposals, building on last Wednesday’s helpful evidence session.
The Government’s spending plans are focused on offering stability now to our economy, community and public services and on the promotion of inclusive economic growth over the long term. Our plans have been framed by wider economic and political factors with which the committee will be familiar, not the least of which are the emerging implications of the European Union referendum outcome and the continuing constraint that the Chancellor of the Exchequer is applying to public finances, and by the programme for government that the First Minister set out last autumn. We remain firmly committed to that programme because we believe that it sets out a positive vision for Scotland.
Our spending plans confirm the funding that is needed to make progress on key commitments such as those on the economy, on educational attainment, on the early years, on health, on infrastructure and on climate change. We are taking a strategic approach to the economy, supported by our £500 million Scottish growth scheme, and are maintaining investment in higher and further education, providing funding for our city deals and introducing a range of interventions that are designed to support innovation, internationalisation and entrepreneurship, such as funding for the new innovation and investment hubs.
The budget proposes to increase the planned funding for 2017-18 for targeted educational attainment measures to £170 million, and it provides initial funding of £60 million to support the expansion of early learning and childcare by 2021. It proposes a real-terms uplift to the national health service budget, which will provide record funding for the NHS in Scotland and increase funding in key areas such as mental health, primary care, general practitioner services and the integration of health and social care.
The budget provides for key infrastructure projects across our roads and transport programme as well as in relation to public services and our ambitious targets for affordable housing and digital infrastructure. It will also help us to address climate change through the national priority status that we have attached to energy efficiency. It provides strong support for areas of front-line delivery, such as through real-terms protection of the front-line police budget, and a substantial funding package for local authorities’ services. We will also take the crucial next steps to develop a devolved social security system that is based on dignity and respect while we continue to do all that we can to mitigate the worst effects of the United Kingdom Government’s welfare reform.
Cabinet secretary colleagues and stakeholders have been giving evidence to subject committees on those matters and on other spending proposals that each portfolio has included in the budget. As the committee will know, portfolio ministers have lead responsibility for the planning and delivery of expenditure in their own areas. I hope that the evidence that they have provided to the Parliament gives much of the detail and has been helpful. However, I am happy to add my own perspective on the strategic direction that drives the proposals where that would be helpful.
In presenting our spending plans, we continue to be guided by the Christie commission’s recommendations on the future delivery of public services, including on the continuing need to invest in preventative activities under the national performance framework.
I published alongside the draft budget updated material on performance against the Scotland performs indicators that underpin the national performance framework, as well as the public sector pay policy for 2017-18, the annual equality budget statement and the carbon assessment of the budget.
I wish to put on record again my willingness to engage with all members of the Parliament to build support for my tax and spending proposals, and I value the contribution that this committee will make in that process through your scrutiny of the Government’s plans and your recommendations.