Finance, Constitution and Economy
Dundee City Council (Funding)
To ask the Scottish Government when the Cabinet Secretary for Finance, Constitution and Economy last discussed funding for public services with Dundee City Council. (S4O-04728)
The Scottish Government engages regularly with all local authorities in Scotland, including Dundee City Council, on a wide range of issues.
The cabinet secretary will be aware that Dundee City Council has announced that it is to make £28 million in cuts over the next two years. Coupled with the £27 million in cuts that NHS Tayside is to face, that means that we have a £55 million black hole in our finances. Given the relatively high deprivation, deep-rooted health inequalities and low employment in my city, does the cabinet secretary believe that it is fair for his Government to ask Dundee and NHS Tayside to make such deep cuts? What impact does the Government believe those cuts will have on my community?
The first point to make to Jenny Marra is that, during the past five years, the Scottish Government budget has reduced in real terms by 10 per cent. In that context, the Scottish Government has worked assiduously to protect and deliver public services. That has resulted in a real-terms increase in the health service budget and we have guaranteed that increase for the remainder of the current parliamentary session and for the next parliamentary session.
For local government, it has meant a fair financial settlement in comparison with the significant reductions in public expenditure that local authorities south of the border have faced. The Government will co-operate with public authorities in Scotland as we work through the implications of the spending review on 25 November to ensure that we put in place a sustainable budget that meets the needs of the people of Scotland, including those in the city of Dundee.
Housing Market
To ask the Scottish Government what action the Cabinet Secretary for Finance, Constitution and Economy is taking to help stimulate the housing market. (S4O-04729)
Our planned investment of more than £1.7 billion in affordable housing over five years has significantly benefited the many house builders across Scotland who win the contracts to build those homes. Innovative funding and delivery models using charitable bonds, pension finance and guarantees have complemented our traditional affordable housing programme such that we are well on our way to achieving our target of having 30,000 affordable homes built by March 2016.
We have also supported sustainable home ownership with £305 million investment over three years going to the help to buy (Scotland) shared equity scheme, including the £30 million help to buy (Scotland) small developments scheme.
Since 2007, our popular low-cost initiative for first-time buyers, or LIFT, schemes have helped more than 10,000 people on low to moderate incomes to get a foot on the property ladder. For 2015-16, we have allocated £70 million to our open market shared equity scheme.
I thank the cabinet secretary for that very detailed answer. Will he confirm that the actions taken by the Scottish Government are helping thousands of Scots to purchase their own homes? Is he further able to confirm that the number of houses sold in Scotland has reached its highest level for more than seven years?
It is some achievement to see the volume of transactions continue to increase. The data that was released on 27 October shows that 28,019 residential properties were sold, which is an increase of 6.5 per cent on a year ago.
There is no doubt that our actions have assisted that increase. Since 2007, LIFT and the shared equity scheme have helped more than 10,000 people on low to moderate incomes to get a foot on the property ladder. However, we also note that volumes are still well below pre-recession levels and we will continue to work with the industry to maintain the upward trend that we are experiencing.
Does the cabinet secretary agree with the findings of the commission on housing and wellbeing that Scotland is facing a housing supply crisis, and that we are building fewer houses than we have done for 70 years? Does he also agree with the commission’s provisional target that we should build 23,000 homes a year?
Mr Macintosh and I have gone over these issues many times in the past few years, and the first point that I would make is that when the Government’s capital budget is reduced by 25 per cent, there are constraints on the capital expenditure that we would like to deploy. For that reason, we have resorted to innovative funding and delivery models, which have helped us to achieve what many people thought was a significant target of 30,000 affordable homes by next March. As I said in my answer to Mr Coffey, we are well on our way to achieving that target by that date.
Of course, there is further unmet demand for housing in Scotland. That is precisely why the First Minister has said that if this Administration is returned in the election next May, we will commit ourselves to a target of 50,000 affordable homes over the lifetime of the next Parliament, as a significant contribution to addressing the demand that is clearly illustrated for housing in Scotland.
Sustainable Economic Growth in Towns
To ask the Scottish Government how it is supporting sustainable economic growth in towns. (S4O-04730)
Scotland’s town centre first principle, agreed with the Convention of Scottish Local Authorities, and the range of measures that are set out in the town centre action plan set the conditions for and underpin activity that is designed to tackle key issues such as empty shops and diversifying the town centre offer, thereby attracting a range of businesses and services to locate there.
We deliver the most competitive business tax environment in the United Kingdom, with more than two in five rateable properties in Scotland paying zero or reduced rates under the Scottish Government’s small business bonus scheme alone, and further relief is available under our fresh start and new start schemes.
In addition, to support local authorities that remain responsible for local economic development, we have also introduced a substantial new power under the Community Empowerment (Scotland) Act 2015, which gives councils more control over business rates and an opportunity to tailor them to their local area and circumstance. It could be applied in order to attract new investment into our town centres.
GVA James Barr’s sixth annual report on Scotland’s town centres highlights some encouraging signs of growth. However, it also says:
“Many policies continue to discourage non-retail uses within centres unfairly, despite our research finding that it is these uses that are lifting levels of activity in high streets”.
Given the emphasis on mixed-use town centres in the town centre action plan, what can the Scottish Government do to ensure that town centres thrive once again not just as places to shop but as places to live, learn, visit and invest?
The member makes a good point. We want a variety of uses in town centres, not only retail. I will undertake to examine the report to which she referred. I think that she has made a useful and constructive suggestion.
I alluded to the fact that powers are being created for local authorities to establish a town centre investment zone, using discretionary rates relief. That is one tool.
It is relevant that, under our reforms of empty property relief, the fresh start relief scheme offers a 50 per cent rates discount for the first years of occupation of certain long-term empty premises. That has been done precisely to provide an incentive to bring empty premises back into use and to encourage diversification of town centres.
Does the minister agree that the significance of the small business bonus scheme is sometimes understated and is not properly appreciated, and that there has been a year-on-year increase in the number of businesses taking up the available discounts, with 99,000 properties across Scotland now benefiting from the scheme?
I agree that understatement of the benefits of the small business bonus scheme is a mistake that has been made, although not by me. I have always emphasised that small businesses deserve a better deal. When we became the Administration in 2007, the finance secretary delivered that better deal. Ever since then, the number of small businesses that benefit from the arrangement has risen inexorably and now stands at almost 100,000.
That is providing a lifeline for many businesses, including the Victorian market in Inverness in my constituency. Without the benefit of that reduction in, or elimination of, business rates, I suspect that many of those businesses would not have been able to continue in business. Our pledge is to continue the scheme, and I am grateful to Mr MacKenzie for his campaigning on the issue as always.
European System of Accounts 2010
To ask the Scottish Government what discussions it has had with the Office for National Statistics regarding the implications of the European system of accounts 2010. (S4O-04731)
Scottish Government officials have been working closely with the Office for National Statistics on the implications that the introduction of the European system of accounts 2010 will have for a wide range of issues across the public sector.
Have the discussions led the cabinet secretary to believe that it will be possible to unlock the delayed capital investment without a massive hit on up-front capital expenditure? Have his officials had discussions about university funding, about which there is considerable concern? I believe that Universities Scotland has had discussions and has come to conclusions that are quite different from his.
The work on the classification of non-profit distributing and hub projects is still under way. We are still involved in discussions with the Office for National Statistics on that point and await the ONS’s decisions. I will advise Parliament, as I have promised to do, when I have that information.
I assure Mr Chisholm and Parliament that a tremendous amount of effort is going into resolving the issues because I want to ensure that the construction projects to which he refers are able to take their course. They are essential to strengthening the Scottish economy, as the economic data have demonstrated.
On the classification of universities, the Scottish Government is clear that universities are autonomous bodies. We do not believe that there is anything in the Higher Education Governance (Scotland) Bill that contravenes the ONS indicators of control. The Government has set out those opinions clearly to Parliament in recent debates.
The Deputy First Minister will be aware of the concerns of South Ayrshire Council and other local authorities about delays to school building programmes. In my constituency, those delays are affecting Ayr academy and Queen Margaret academy. When will those matters be resolved and how does he intend to resolve the problem with the ONS to allow concerned local authorities such as South Ayrshire Council to proceed with their planned school building projects?
The Government has undertaken a significant amount of school rebuilding and refurbishing to date. We are working our way through the conditions report on schools to ensure that we have a school estate that is appropriate for the 21st century. A great deal has been achieved already.
The question was about the issues that we face on the forward programme. I assure Mr Scott that the Government is working with all its energy to resolve the issues that the Office for National Statistics has raised. The ESA rules have changed since we commenced our programme and we are exploring and examining the best way to respond to that. We have made proposals to the ONS and we await the outcome of its deliberations on those points. I assure Mr Scott that the issue will be resolved as quickly as it possibly can be and, once it is resolved, I will take action to advance the programme in the most appropriate way in light of the ONS’s decisions.
Land and Buildings Transaction Tax
To ask the Scottish Government how much it has collected in land and buildings transaction tax. (S4O-04732)
The land and buildings transaction tax monthly statistics that are published by Revenue Scotland show that £183 million was raised from the tax in its first six months of operation.
Is that figure in line with, higher or lower than the sums that the Scottish Government expected to raise?
I will put a caveat on the figure that I shared with Mr Fraser: there is an unresolved issue in relation to the first six months of the financial year, given the effects of forestalling because of the interaction between the tax that we raise and the predecessor tax that the United Kingdom Government put in place.
Such issues have become the subject of discussions with the UK Government. We estimated that land and buildings transaction tax would raise £381 million in the course of this financial year. In my view, the tax that has been collected to date is in line with that estimate and we will continue to monitor that for the remainder of the financial year.
Is the cabinet secretary able to confirm whether receipts of LBTT on the sale of properties for less than £330,000 will show that the doom-mongering of the Conservatives has been completely and utterly without foundation?
The figures that Registers of Scotland published last week show that house sales in the most recent quarter reached the highest volume for any quarter since April to June 2008, which is very encouraging. A number of commentators have recognised the positive effect that LBTT is having on the Scottish housing market. Christine Campbell, who is Your Move’s managing director in Scotland, recently stated that LBTT has given
“the middle and the lower tiers of the market a new lease of life.”
She added that the
“rapid recent growth in Scotland is grounded in the new LBTT rates, which are stimulating demand at the bottom and middle rungs of the property ladder.”
That is exactly what I intended to do as a consequence of the rates that I set.
Local Authorities (Business Rates)
To ask the Scottish Government whether Renfrewshire Council or any local authority that decides to reduce its business rates would have to pay an equivalent amount to the Scottish Government. (S4O-04733)
Any reduction by a council of non-domestic rates in its area, under part 11 of the Community Empowerment (Scotland) Act 2015, would be fully funded by that council and its reported rates receipts would not be affected.
I think that the cabinet secretary just avoided giving an answer, because my understanding—he can correct me if I am wrong—is that any reduction will be funded by the councils but they will have to pay the Scottish Government for the amount by which they reduce business rates. Will he confirm that that is the case and, if it is, does he think that it is acceptable that council services such as education and home care will have to be reduced to make sure that the Scottish Government does not lose a penny?
I am a bit surprised by Mr Henry’s response to what I thought was a very clear answer. I indicated that the reduction by a council of non-domestic rates in its area would be fully funded by that council and its reported rates receipts would not be affected. That is the answer that I gave him, which clearly addresses the question that he raised with me.
I point out to Mr Henry that local authorities welcomed the granting of the power. The Convention of Scottish Local Authorities gave it a warm welcome, which I think represents the view of local authorities that want to exercise control to make their areas more attractive for investment. I encourage local authorities to take up the opportunity that the Government has created.
Dalzell and Clydebridge Steel Plants (Jobs)
To ask the Scottish Government what action it is taking to protect jobs at the Dalzell and Clydebridge steel plants. (S4O-04734)
I am—as, I am sure, all members are—concerned about the impact that the proposed mothballing of Tata Steel’s operations at Clydebridge and Dalzell would have on the workforce, their families, the local communities and the steel industry in Scotland.
Immediately, when the announcement was made, the First Minister convened a multi-agency task force, of which James Kelly is a member. I chaired the first meeting on 29 October and we will meet again on 13 November, given the urgency of the action that is needed to find an alternative operator for Tata Steel’s plants at Dalzell and Clydebridge. The primary purpose of the task force is to find an alternative operator. The Scottish Government is determined to help to secure a viable future for both plants.
I thank the minister for that answer. Last week, the minister told Parliament that Transport Scotland is working to identify public infrastructure projects that would be relevant to Clydebridge and Dalzell. That stream of work is absolutely urgent in order to secure the future of the plants. What relevant projects has Transport Scotland identified? Also, have any other public agencies identified projects that would be relevant to work that is carried out at Clydebridge and Dalzell?
I confirm that Transport Scotland is carrying out a review to ascertain what more can be done. It is important to point out that Tata Steel produces rails at the Hayange works in north-east France, so it would not be possible for Clydebridge or Dalzell to provide steel for railway tracks.
However, there are possibilities in shipbuilding. In October we awarded two contracts to Ferguson Marine Engineering Ltd, so there is a possibility in that respect, although not in the immediate future.
Just yesterday I made a personal private visit to Dalzell and had a long discussion with the management and with the trade union and workforce. During that discussion, there was a useful suggestion made that bridges for road projects could use steel that is rolled at Dalzell and quenched and tempered at Clydebridge. That suggestion is being pursued.
Michelle Rennie of Transport Scotland is to visit Tata for a similar discussion. She will take with her experts in procurement for that particular aspect of road works. All other potential aspects are being pursued by Transport Scotland, and a full report will be made to the task force a week tomorrow.
Does the minister share my disappointment that the Scottish Government is being excluded from the European Union talks to discuss the industry’s future?
I wrote to Sajid Javid on 2 November expressing my disappointment at not having been given the opportunity to participate in a crucial EU-level meeting. I say that simply because I feel that we have a strong case to make, informed by the benefit of a full parliamentary statement and input from across the chamber, in which there was unanimous support, and by a reasonable amount of knowledge that has been garnered from the benefit of speaking to the management, the trade union and individually to members of the workforce.
However, I do not want to dwell on that in a political sense. I am pleased that a European Council emergency competitiveness council will be held on Monday 9 November to discuss the situation, and I have asked that our director for economic development be included as a member of the UK delegation. I hope that that request will be acceded to.
Taxation (Devolution of Powers)
To ask the Scottish Government what additional powers over tax it considers should be devolved. (S4O-04735)
The Scottish Government believes that the Scottish Parliament should have full control of all taxes raised in Scotland.
As we set out in “More Powers for the Scottish Parliament” in October 2014 and “Beyond Smith—More Powers for the Scottish Parliament” in June 2015, full fiscal autonomy remains our preferred package of powers, short of independence.
Does the cabinet secretary agree that the recent debate on tax credits in Westminster gives a sense of urgency about devolution of those powers to this Parliament so that we can deal with the matter in a humane and sensible way?
The arguments for ensuring that we can exercise full financial responsibilities are important, not only because that would enable us to ameliorate the challenges that vulnerable people face as a consequence of welfare reforms in the United Kingdom, but because it would give us the ability and the capacity to grow and strengthen the Scottish economy. In my view, one of the considerable weaknesses of the Smith commission proposals remains that they do not give us sufficient powers to grow and expand the Scottish economy. That balance of powers is required to enable us adequately and fully to address the needs of the people of Scotland.
Superfast Broadband
To ask the Scottish Government whether it will provide an update on the roll-out of superfast broadband. (S4O-04736)
The Scottish Government’s digital Scotland superfast broadband programme is investing more than £410 million of public and private sector funds to extend the coverage of fibre broadband to 95 per cent of Scottish premises by the end of 2017, with an interim milestone of 85 per cent coverage by March 2016.
The programme is progressing through two regional projects: one that is led by Highlands and Islands Enterprise, and another that is led by the Scottish Government. The DSSB programme is a key step in the Scottish Government’s aim for Scotland to become a world-class digital nation by 2020.
We are less than half way through the physical roll out. However, we are already more than half way towards our 2017 target of 750,000 homes and businesses, with more than 460,000 premises now having access. That is the fastest deploying network in the United Kingdom, and we are enabling an average of 7,000 homes and businesses each week throughout Scotland. Without the intervention programme, only 66 per cent of Scotland’s homes and businesses would have access to fibre broadband services.
We have also set up community broadband Scotland to work with communities that are unlikely to have superfast coverage delivered through the DSSB programme and to support them to design and implement sustainable broadband solutions.
I thank the cabinet secretary for that detailed answer. A number of my constituents have contacted me regarding exchange-only lines. Can he outline how digital Scotland and its partners are working to deal with exchange-only lines?
A number of homes and businesses throughout Scotland are connected directly to their local exchange via an exchange-only line. Those lines present a greater engineering challenge to address than those that are connected via roadside cabinets. However, the good news is that a number of solutions are available under the Scottish Government’s digital Scotland programme. Those technical solutions are often complex and time consuming and they are significantly more expensive than standard solutions, but the programme will always look to deploy the solution that is best suited to each situation, while maintaining our value-for-money criteria. Digital Scotland has already enabled more than 80,000 exchange-only homes and businesses across Scotland, and the number is increasing every week.
There are a number of supplementary questions. I will try to take them all if the questions and answers are brief.
The cabinet secretary will be familiar with the superconnected cities broadband voucher scheme, which the United Kingdom Government closed six months early the other week, no doubt as a result of high demand from small and medium-sized enterprises in our major cities. What discussion has the Scottish Government had with the UK Government about reopening or replacing that scheme in due course?
A number of developments in the superfast broadband programme are currently under consideration. As I have reported to Parliament, the Government has a gain-share element of the contract, which is enabling us to extend the roll-out in the existing contract. We will continue to explore every opportunity to support the roll-out of superfast broadband. It is particularly important that businesses become engaged in the process, because there is a strong platform for competitiveness in the years to come.
The cabinet secretary referred to Highlands and Islands Enterprise taking forward the programme, which I very much welcome. He will be aware that the target for coverage across the region is around 84 per cent. He may also be aware that, in places such as Orkney, coverage is likely to fall short of that, at around 75 per cent. Does he believe that it should be a priority, both for community broadband Scotland and for any additional investment, to bring areas such as Orkney that fall below the regional average up to that regional average and beyond?
I recognise the importance of the issue to Mr McArthur’s constituents. I have set out that our target is to get to 95 per cent of Scottish premises by the end of 2017 under the DSSB programme. The remaining 5 per cent are still very much in my sights, in terms of how we can find solutions for those individuals and premises. Community broadband Scotland has a particular role to perform in working with communities to identify the most appropriate solutions, and I know that many projects are already in scope with community broadband Scotland to enable that to happen.
I assure Mr McArthur and his constituents that finding solutions to the challenges for people who are outwith the core programme that we are rolling out remains uppermost in the Scottish Government’s mind and in the design of the programme. We will ensure that every opportunity is taken to get those services delivered as speedily as possible to some constituents who currently cannot see where their services will come from.
I apologise to the other members who wanted in, but I am afraid that I need to move on.
Partnership Action for Continuing Employment (Professional Footballers)
To ask the Scottish Government what support the PACE team can provide to unemployed professional footballers who have been released by their club. (S4O-04737)
Partnership action for continuing employment is a Scottish Government initiative that is dedicated to helping individuals and employers with the advice and support that they need when faced with redundancy. That support is also available to individuals whose contracts have not been renewed, and PACE support is therefore available to unemployed professional footballers who have been released by their club.
PACE offers free and impartial advice and support that is tailored to meet individual needs and local circumstances. That includes one-to-one counselling; information on rights, entitlements—including benefits entitlements—and tax calculation; help with job search, writing CVs, application forms and covering letters, and preparing for interviews; and help with identifying learning and training opportunities, starting up a business, making the most of one’s money, and coping with redundancy-related stress.
Hundreds of young footballers are signed by clubs every year on professional youth contracts. It has been suggested that up to 95 per cent of those young players fail to make the grade and are released. What arrangements does the Scottish Government have with the Scottish Football Association or the Scottish Professional Football League to support young people who find themselves unemployed and who may not have considered an alternative career? Will he ask the PACE team to investigate the situation and offer support for retraining and seeking alternative employment?
Mr Griffin has raised a serious and relevant issue. I can assure him that—as I think he well knows—both football clubs and the football authorities take very seriously their responsibility to all their employees, paying particular regard to the fact that many of those employees may leave their employment at an early age.
As Mr Griffin has raised the matter in the chamber today, I assure him that I will ask PACE specifically to seek to engage with both the SPFL and the SFA to check that there is nothing more that can be done. If there is more that can be done, I am sure that PACE will be ready to do it.
English Votes for English Laws
To ask the Scottish Government what analysis it has carried out on the possible impact on its finances of English votes for English laws. (S4O-04738)
The Scottish Government is concerned that the EVEL procedures will exclude Scottish MPs from key decisions on bills that will affect Scottish finances through the Barnett formula. Having received evidence from the Scottish Government, the Procedure Committee at the House of Commons has highlighted Barnett consequentials as an issue to be examined when it reviews the operation of standing orders.
Now that the House of Commons has adopted EVEL procedures, effective inter-governmental co-operation on all Westminster bills is even more crucial.
Many of my constituents share worries that cuts by the Westminster Government to areas of responsibility that come under EVEL will be reflected in the Barnett consequentials that come to the Scottish Government. Can the cabinet secretary tell me whether any debates or discussions have been arranged to address the issue?
The issue will be pursued through existing intergovernmental machinery. Many such issues would be better protected if we had greater provision in the Scotland Bill on the entrenchment of procedures under the Sewel convention, which is the proper statutory approach to consideration of questions on the subject. I assure Mr Kidd that the issue will be assiduously monitored by the Scottish Government, as we determine the implications of that significant change to parliamentary procedures.
Chancellor of the Exchequer (Meetings)
To ask the Scottish Government when the Cabinet Secretary for Finance, Constitution and Economy last met the Chancellor of the Exchequer and what issues were discussed. (S4O-04739)
I last met the Chancellor of the Exchequer on 8 June 2015. We discussed matters relating to the fiscal framework and the economy. I have also met the Chief Secretary to the Treasury on four occasions since June to progress negotiations on the fiscal framework for Scotland.
I ask the cabinet secretary to draw to the United Kingdom chancellor’s attention the 250,000 working families in Scotland who will lose at least £1,500 a year due to tax credit cuts. Those cuts are particularly relevant to my constituents, given that 60 per cent of Glasgow kids stay in households that rely on tax credits. I ask the cabinet secretary to redouble his efforts and to urge the UK Government to scrap this pernicious attack on the working poor in Glasgow and across Scotland.
The chancellor will be well aware of the difficulties that are being created by his tax credit proposals, given the decisions of the House of Lords last week. We await the outcome of the spending review at the end of the month, which will determine the final form of the proposals that are taken forward, and the response of the UK Government.
I agree with Mr Doris about the pernicious effects of the changes. They will cause hardship to people who are working very hard to get on in life, and I associate the Government with his remarks about the need to ensure that the chancellor does not progress changes of this nature.
Onshore Coal and Gas Extraction Licensing (Devolution)
To ask the Scottish Government what meetings it has had with the United Kingdom Government regarding the devolution of onshore coal and gas extraction licensing. (S4O-04740)
All coal extraction licensing, including for underground coal gasification, is the responsibility of the UK Coal Authority and is therefore a reserved matter. The devolution of coal licensing has not been discussed with the UK Government at this time.
If the member is referring to conventional onshore gas extraction, I can confirm that the licensing process for all onshore gas extraction is due to be devolved to the Scottish Parliament, in line with recommendations from the Smith commission. The Scottish Government continues to engage with the UK Government about the plans for devolution and the Scotland Bill 2015, but there have been no recent discussions about this specific matter.
As the minister will be aware, I have submitted a number of written questions to the Scottish Government that relate to this issue, which is one that I and a large part of the Scottish public are concerned about. What consultation does the Scottish Government plan to have with local authorities and community groups on the transfer of licensing powers over gas extraction? When are those powers expected to be transferred to the Scottish Government?
I can confirm that the member has raised the matter on a number of occasions.
We engage regularly with local authorities about the discharge of all our responsibilities in so far as they affect local interests. This particular interest will be no exception. I can advise the member that in the near future I will be meeting Stephen Hagan, the economic development spokesperson for the Convention of Scottish Local Authorities, and I will certainly be raising these matters with the local authorities. We need to do so in preparation for the transfer of licensing powers, whenever that occurs. I am not sure that the precise date of transfer has yet been settled by the Westminster Parliament, but I hope that it will be settled soon.
Sarah Boyack has a brief supplementary; please provide a brief answer.
How will the minister ensure that the research that comes under the remit of the Scottish Government’s moratorium will apply to projects that are currently under licence or under planning?
The research programme that we have set out is extremely comprehensive in relation to unconventionals. The research will cover all aspects of such matters as the possible impact on the environment, on transport and on traffic as well as the economic issues thereanent.
There have been no planning applications for hydraulic fracturing, so far as I am aware, so I do not think that there are any current applications or matters for which the research would need to consider the position in Scotland. Certainly no applications have been granted. It is difficult to see how the research can encompass developments that have not yet taken place.
If I have in any way misunderstood the question, or if the member has any other matters to raise, she should not hesitate to write to me and I will endeavour to reply as quickly as possible.
Social Enterprise Businesses (Financial Support)
To ask the Scottish Government what plans the Cabinet Secretary for Finance, Constitution and Economy has to provide financial support for businesses in the social enterprise sector in the south of Scotland. (S4O-04741)
Scotland is regarded as world leading in the support that it provides to social enterprise. The Scottish Government is committed to supporting and investing in the sector as part of the development of a capable, sustainable and enterprising third sector. The Scottish Government has maintained funding of £24.5 million to the third sector in 2015-16. The detail of our forthcoming spending plans will be set out in the Scottish budget.
Social enterprise in Scotland is thriving, with 5,200 companies now operating—a 42 per cent increase in the past 10 years—and a net worth of more than £3 billion. The cabinet secretary is to be congratulated on his personal commitment to the sector’s success. Will the Scottish Government expand its commitment to social enterprises by asking local authorities in the south of Scotland to further engage with those enterprises by outsourcing to them and having them provide non-core local services and activities and, in doing so, secure community involvement?
I agree very much with Mr Brodie’s suggestion. There is an opportunity for us to redesign public services to involve social enterprises in a fashion that makes a real impact on the lives of individuals in Scotland, particularly in some of the isolated locations in the south of Scotland that are represented by Mr Brodie. I encourage all public authorities to engage constructively with social enterprises to find ways in which the sector can make a more profound contribution to our economy and to the delivery of public services.
National Health Service Boards (Funding Formula)
To ask the Scottish Government what assessment the Cabinet Secretary for Finance, Constitution and Economy has made of the future funding formula for NHS boards. (S4O-04742)
The national resource allocation committee formula is used to inform funding for NHS boards. It is calculated independently. Although NRAC shares are regularly subject to revision and refinement, there are no current plans to change the use of that formula in the future. We remain committed to moving all boards to being no greater than 1 per cent below NRAC parity. That commitment is reflected in the £420 million that has been invested by the Scottish Government in parity funding since 2012-13.
Given that NHS Grampian has been underfunded per head of population in all but one year of the Parliament, what assurance can the cabinet secretary give that the health board will not fall behind again in the foreseeable future?
As I explained in my earlier answer, the Scottish Government has taken action to address the issues where boards are more than 1 per cent below NRAC parity. That will remain our position in forthcoming years. Grampian has had a total of £29 million allocated to it in 2015-16 specifically to accelerate movement to NRAC parity. The Government will of course consider all those issues as part of the budget process that follows the United Kingdom spending review.
Thank you, cabinet secretary. That concludes question time.