Meeting of the Parliament

Meeting date: Thursday, November 10, 2011

Official Report 1100KB pdf

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Scottish Executive Question Time

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Finance, Employment and Sustainable Growth

Good afternoon. The first item of business this afternoon is themed question time. The questions are on finance, employment and sustainable growth. In order to get as many members in as possible, I would prefer short and succinct questions, with answers to match.

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Employment and Regeneration (Cunninghame South)

1. To ask the Scottish Government how it plans to reduce unemployment and improve economic regeneration in Cunninghame South. (S4O-00338)

The Scottish Government remains completely committed to reducing unemployment and improving economic regeneration throughout Scotland. In Cunninghame South specifically, we have provided £11.2 million between 2006 and 2012 to Irvine Bay Urban Regeneration Company and have offered a further £2.5 million for 2012-13. We have provided almost £1.9 million of European funding to support local employability activity, through the community planning partnership.

Will the minister join me in congratulating Irvine Bay Urban Regeneration Company on being given the United Kingdom roses design award for the work that it has done in transforming Kilwinning Main Street and pursuing to good effect other vital regeneration projects throughout North Ayrshire? Will the minister give reassurances about continued Government support to allow Irvine Bay Urban Regeneration Company to continue its work to improve the economic landscape of North Ayrshire in the years ahead?

Yes, I will join the local member in recognising the good work that the company has carried out and congratulating it on its recent award, which recognises the good, hard work that its team has carried out. As far as future funding is concerned, I understand that, just in the past day or so, my colleague Alex Neil has had fruitful discussions with North Ayrshire Council, which are on-going. I very much hope that the outcome of the discussions will be some good news for the member’s constituents.

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Social Economy

2. To ask the Scottish Executive how it is strengthening the social economy to enhance sustainable growth. (S4O-00339)

The Scottish Government is committed to supporting the development of a sustainable and enterprising third sector, which is a key partner in helping Scotland to a successful and fairer future. Over the next three years, the Scottish Government will provide £73.5 million to the third sector, which is an 18.3 per cent increase on the period 2004 to 2007.

Many of the social enterprises that have contacted me have raised concerns that the Government cuts to the third sector are increasing the demand on the social economy for its services. How will the minister address those concerns in order to support further this vital area of the economy?

One of the great strengths of the period since 2007 has been the positive response that we have had from third sector organisations, which are willing to develop social enterprises and to ensure that the third sector is placed on a more sustainable footing. I spend a good proportion of my time visiting a number of social enterprises around the country. I visited one recently in the city of Aberdeen called Aberdeen Foyer, which is an excellent example of an imaginative and regenerative social enterprise.

The Government will certainly give a firm commitment to the continuation of the development of the social enterprise sector, despite the challenging public finance environment in which we operate. I reiterate to Anne McTaggart and other members that the Government is continuing, despite the financial pressures that we face, to support substantial investment in the third sector.

Mark McDonald has a supplementary question.

The cabinet secretary rightly highlighted some of the good work that Aberdeen Foyer has done. As the Government looks to shift towards preventative spending, what role does he see organisations such as Aberdeen Foyer and others in the voluntary sector playing as part of that agenda?

I envisage a significant role for third sector organisations in the preventative spend agenda on which the Government is focused. I want to point out to Mr McDonald a detail about Aberdeen Foyer with which I am sure he is familiar.

On my visit, I saw a number of excellent examples of preventative expenditure. Individuals who face substantial difficulties in their lives through drug and alcohol addiction, who would undoubtedly have required substantial support from the public purse or perhaps even got involved in the criminal justice system, have had their lives turned round by intervention to support employability. It was thrilling to learn about the journey that the individuals have taken and I warmly compliment them on their achievements.

Social enterprises have a major role to play in community regeneration. The town centre in Whitburn, in my region, has suffered three major fires and the closure of the Royal British Legion. Will the cabinet secretary visit Whitburn with me and local stakeholders, including representatives from social enterprises, to discuss how the Scottish Government can help to rebuild a proud town?

I will not commit at this stage to a visit to Whitburn but I will certainly ensure that officials are in touch with Mr Findlay about how we can ensure that all the local organisations are made aware of all the different areas of support that exist for the development of social enterprise in Scotland. Given the circumstances that he has recounted, I suspect that there is an argument for advice about regeneration strategy into the bargain. I am certain that we can co-operate with West Lothian Council in that regard. I will take the matter forward and take a keen interest in the issues that arise as a consequence.

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Welfare Reform

3. To ask the Scottish Government what the impact will be on devolved services if £2 billion is taken from the Scottish economy because of the United Kingdom Government’s welfare reforms. (S4O-00340)

It is clear that the UK Government’s programme of welfare reforms is impacting adversely on the Scottish economy, on Scottish services, such as housing, and on many vulnerable people in Scotland.

The Scottish Government estimates that around 60,000 tenants in Scotland are facing the prospect of losing an average of £40 per month, and the freeze in child benefit for three years from 2011-12 has reduced the real-terms income of approximately 621,000 families in Scotland. That works against our efforts to promote growth and jobs.

I draw the cabinet secretary’s attention to the social housing sector and the housing benefit reductions in relation to the underoccupancy rules that the UK Government is bringing forward. Some 44 per cent of households would need one-bedroom properties, but only 24 per cent of households are currently in such properties, so the approach will cause rent arrears for vulnerable tenants and indebtedness for families. It will also seriously undermine housing association and local authority finances.

Does the cabinet secretary agree that that will undermine the public policy intent of the devolved Scottish Parliament? Does he think that not just the Scottish Government but the Scottish Parliament must have on-going scrutiny of the damaging effects on Scotland of savage UK welfare reforms?

It is clear that there will be a significant impact on areas of responsibility of the Scottish Government and local authorities in Scotland as a consequence of the welfare changes that the UK Government has made. In many respects, a cost-shunting approach is being taken whereby responsibility for changes that arise from the UK Government’s approach will be passed to this Administration or to local authority partners.

We have published extensive analysis of the impact of the housing benefits. We know, for example, that the changes this year alone will take £100 million out of the Scottish economy annually. There are substantial consequences for the Scottish Government, and we have worked closely with the Convention of Scottish Local Authorities and other housing stakeholders, through the housing benefit reform stakeholder advisory group, to assess the implications and make representations to the United Kingdom Government as a result.

I associate myself with the concerns that Bob Doris expressed. In his answer to Bob Doris and when he gave evidence to the Economy, Energy and Tourism Committee, the cabinet secretary talked about the risks to the Scottish economy of the welfare changes, but I am concerned that not much cognisance is taken of the issue in the budget. There are only two references in the budget to the welfare reform proposals, and neither is particularly substantial. Will the cabinet secretary take the opportunity to say more about the impact on the Scottish Government’s budget and how the Government is preparing for that?

There are two parts to my answer to Mr Smith. The first is that we are still working to assess all the implications of the welfare reform agenda process, as it emerges from the United Kingdom Government. For example, changes are proposed involving the abolition of council tax benefit. As I confirmed to either the Economy, Energy and Tourism Committee or the Local Government and Regeneration Committee the other week, I cannot in all honesty say that I am familiar with all the details, because they are not yet in our possession.

The second part of the answer is that the Government’s priorities are clearly set out in the budget. We wish to support economic recovery and we want to support household income through this difficult period. The Government’s position on, for example, the council tax freeze and the abolition of prescription charges is fundamental to our efforts to support some of the most vulnerable people in our society and to support their income at a difficult and challenging time.

Of course, many of the issues that I know will be of concern to Mr Smith are fully considered in the assessment of the budget from an equalities perspective.

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Small Business Start-ups

4. To ask the Scottish Government how it is creating a supportive environment for small business start-ups. (S4O-00341)

We recognise the vital contribution that small business start-ups make to our economy and we are firmly committed to maintaining a supportive business environment and ensuring that appropriate measures are in place to stimulate and grow small businesses. Those measures include the small business bonus scheme, which reduces rates for 85,000 Scottish businesses; the transfer of the business gateway to local authorities; investing in broadband; reducing unnecessary burdens on businesses; and making it easier for small businesses to access public sector contracts.

Figures that I obtained from the local business gateway service in Angus show that, between April and August this year, 33 per cent more businesses were launched across the county than in the corresponding period in 2010, and almost 90 per cent more than in 2009. Does the minister share my view that Angus—along with, I am sure, many other parts of Scotland—is demonstrating the entrepreneurship, ambition and imagination that are required if we are to overcome these difficult economic times?

I agree with the member’s points and welcome the success that has been achieved in Angus. I congratulate Dave Valentine, the head of economic development at Angus Council, on that achievement and on the work that he does as chair of the business gateway Scotland board, in which capacity I met him earlier this week to take that work forward.

What discussions is the Scottish Government having with the Prince’s Scottish Youth Business Trust to assist 18 to 25-year-olds to set up their own businesses?

I have had a number of discussions with the Prince’s Scottish Youth Business Trust, including on Monday evening this week, when I dined with a member of that organisation and various other members of the Institute of Directors in Glasgow. I take this opportunity to congratulate the trust on the excellent work that it does for young people in Scotland, without which many successful entrepreneurs would not have got the start that they needed.

Question 5, in the name of Hugh Henry, has been withdrawn for understandable personal reasons.

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Non-domestic Rates

6. To ask the Scottish Executive what advice it issued to local authorities regarding non-domestic rates, following the publication of the draft budget. (S4O-00343)

The Scottish Government regularly meets and issues guidance to local authorities on a range of topics, including non-domestic rates.

Local authorities are concerned that, several weeks after the publication of the draft budget, they have yet to receive any guarantees that their budgets will be protected should the increased income that the Government assumes will come from non-domestic rates fail to materialise. I also draw the cabinet secretary’s attention to the fact that more local businesses in South Lanarkshire are collapsing than are starting up. Can he give Scotland’s councils a categorical assurance that he will meet any shortfall in non-domestic rates if his figures are found to be less certain than his Government has claimed them to be?

I am surprised to hear that local authorities are waiting for reassurance on that point, because, on all occasions, it is a component of the local authority finance settlement that the Government provides a guarantee of the level of non-domestic rates income that will be provided. Once that guarantee is given, it is honoured by the Administration. I am not sure what is particularly newsworthy about that revelation.

I point out to Margaret McCulloch what I pointed out to the Finance Committee on Monday. Even in the depths of the economic recession in Scotland, in 2008-09, there was still economic buoyancy of 0.91 per cent in non-domestic rates income. At that time, almost every other tax line in the United Kingdom’s public finances was declining. I make that point to demonstrate that, despite the economic challenges that we face, there remains economic strength in the business rates base, which gives me confidence that the assumptions that I have made about non-domestic rates are securely founded.

The example of business growth activity that Mr Dey cited demonstrates that it is possible to achieve that in Scotland. The Government will give every support that it can to every locality in the country, through the work of Scottish Enterprise, Highland and Islands Enterprise and the business gateway, to ensure that all aspiring businesses are properly supported in that way.

What are the specific growth assumptions for each of the three years of the spending review?

I have told Mr Brown in his capacity as the convener of the Economy, Energy and Tourism Committee that I will provide relevant information to the committee on that issue, and I shall fulfil that commitment to the committee.

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Non-domestic Rates

7. To ask the Scottish Executive what analysis it has made of the impact of the proposed increases in non-domestic rates on investment, jobs and output for businesses and on inward investment. (S4O-00344)

Through our commitments to match the business poundage rate in England and to offer the United Kingdom’s most generous business rates relief package, which is worth more than £500 million a year, the Scottish Government has ensured that Scotland remains the most competitive place to do business in the UK.

Further to the discussion of the matter that took place at the Finance Committee on Monday, I am aware that the cabinet secretary has a robust and optimistic faith in his own predictions that is based on his self-monitored past performance. However, I would prefer something a little more rigorous, particularly when his prediction is based on assumptions about the growth of new businesses. The non-domestic rates increases will make life more difficult for new and existing enterprises—

Can we have a question, please?

—at a time when even major high street companies are having their rents reduced to £1 a year to avoid empty properties. Although it is always good to look on the bright side of life—

Mr Pentland, I need a question, please.

—does the cabinet secretary not agree that we need an independent formal modelling of non-domestic rates income, and does he have a contingency plan to raise revenue or cut spending if the business rates do not deliver?

This is déjà vu. I feel that I am reliving Monday in Largs, although I suspect that I will not get the visit to Nardini’s into the bargain.

Mr Pentland said that I am “self-monitoring” on the issue of business rates, but I must correct him on that. All the information on business rates is published in outturn information. Although that may be described by some as self-monitoring, it is well-publicised self-monitoring if it is. As I told the Finance Committee on Monday—the answer that I just gave to Margaret McCulloch will help Parliament to understand this—the assumptions that we have made about economic buoyancy are consistent with the trends that we expect in the Scottish economy and with the advice that has been provided by the Office for Budget Responsibility. My estimates of business rates income—excepting the specific areas in which, I accept, I am increasing business rates through the reform of empty property relief and the public health levy—are broadly consistent with the assumptions of the United Kingdom Government. As I explained to the Finance Committee on Monday, we monitor the performance of non-domestic rates income annually and, if there were any requirement for us to make alternative decisions, we would make them in the light of that performance.

I will let Clare Adamson have a brief supplementary question and, hopefully, the answer will be brief.

What benefits to business activity have come about as a result of the small business bonus scheme, particularly in light of the recent increased uptake, which indicates growth and buoyancy?

There are now 85,200 businesses in Scotland benefiting from the small business bonus scheme. On Tuesday, I attended a major event with the Federation of Small Businesses at which the audience made it very clear to me how much the small business bonus scheme has contributed to the economic health of the small business community. It has clearly helped companies to get through a difficult time, and it has supported the development of new opportunities. The small business community can be assured of the Government’s continued support.

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Local Authorities and Enterprise Agencies (Meetings)

8. To ask the Scottish Executive when it last met local authority leaders and representatives of the enterprise agencies. (S4O-00345)

I met representatives of the Convention of Scottish Local Authorities and local authority leaders yesterday as part of a series of discussions on the local government finance settlement. I met the Scottish Enterprise board on 27 October and I met the chairs and chief executives of Scottish Enterprise and Highlands and Islands Enterprise at the strategic forum meeting on 13 September. On 24 October, I chaired the convention of the Highlands and Islands, which involves local authorities and the enterprise agencies. Government officials regularly meet their counterparts in SE and HIE to discuss a range of subjects.

I thank the cabinet secretary for that full answer. Is he aware of a freedom of information request that I made earlier this year on the amount that has been spent on gifts by local authorities and enterprise agencies during the past five years? It revealed that local authorities have spent more than £1 million, Scottish Enterprise has spent £1,241,036, and Highlands and Islands Enterprise alone has spent a staggering £87,764. Does he think that that is acceptable? If not, what action will he take to address the issue?

I am not familiar with that FOI request. I see many FOI requests, but I cannot say that I have seen that one—it shows that there is still excitement to be had in the time I have left in my life.

Local authorities are independent public bodies and they are within their right to make their own choices about public expenditure, subject, of course, to the Accounts Commission’s scrutiny of their performance.

I accept that Government agencies are the responsibility of Government. However, those organisations take part in promotional events to attract inward investment and so on. I saw a Scottish Enterprise stand yesterday at the Royal Society of Chemistry science and the Parliament event that was giving out free gifts of things such as paperweights, notebooks and mouse mats. I accept that we are in a time of public spending constraint, but we can promote our activities reasonably and proportionately.

I will certainly look at the issue that Margaret Mitchell has raised to see whether I am satisfied that an appropriate and proportionate approach has been taken. However, I caution against sensationalising the numbers, because this work is fundamental to the promotion of Scotland as an attractive country to visit.

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Economy (Highlands)

9. To ask the Scottish Government what benefits to the Highland economy will arise as a result of the recent announcement regarding the Nigg service yard. (S4O-00346)

The Global Energy Group estimates that the Nigg yard could create a minimum of 2,000 jobs by 2015. In addition, there is the potential to create many more employment opportunities, not only in the Cromarty Firth area but throughout Scotland, through a strong supply chain. Highlands and Islands Enterprise’s recent investment of £1.8 million will be critical to developing Nigg’s potential to meet the real and immediate needs of oil and gas, offshore wind and wave and tidal developers.

Does the Scottish Government consider that the current planning arrangements will allow the economic benefits of the Nigg development to be maximised?

The member is right to raise that issue. Scottish Government officials met Highland Council officials earlier this year to discuss how the development plan and the council’s development management procedures can best support the objectives of the national renewables infrastructure plan at Nigg. The council has adopted a masterplan to guide the future planning of the site and the proposed Highland-wide local development plan, although that is still subject to examination by reporters. The council supports the objectives of the national plan and the redevelopment of Nigg yard. All those matters will be given every possible consideration because of the immense potential benefit to the Highlands and Islands and Scotland of the exciting developments that will go ahead at Nigg.

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Employment (Glasgow)

10. To ask the Scottish Government what steps it is taking to improve employment prospects in areas of high unemployment in Glasgow. (S4O-00347)

Glasgow community planning partnership has received almost £8.2 million of European funding between June 2011 and June 2013 to support local employability activity. Glasgow has also benefited from a range of other smaller funds, such as the £500,000 awarded to Glasgow City Council to deliver activity agreements and improve school-leaver destinations, and from Scotland-wide initiatives such as our guarantee of a training or education place for every young person.

Following the publication of the recent report from the House of Commons Transport Committee about the possibility of the high-speed rail link coming to Scotland, will the minister outline what discussions the Scottish Government has had with the United Kingdom Government on that issue and what employment benefits he believes it could bring to residents of my constituency of Glasgow Cathcart?

Ministers have discussed the high-speed rail link with their UK Government counterparts on a number of occasions. We want closer co-operation on this issue. It is essential that the UK Government work with the Scottish Government to ensure that the planning for high-speed rail to Scotland is taken forward as a matter of urgency.

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Third Sector

11. I acknowledge that the cabinet secretary might feel a sense of déjà vu, as he answered this question in part earlier.

To ask the Scottish Government how it is supporting the third sector in the current financial climate. (S4O-00348)

The third sector has a major role to play in Scotland’s future, especially during a period of economic austerity. Including the figures announced in the recent spending review, since 2007 the Scottish Government has allocated more than £190 million to support the core development of the third sector.

The cabinet secretary will acknowledge that there has been a significant increase in the number of referrals to citizens advice bureaux and other welfare assistance agencies, such as Gordon Rural Action, because of the Welfare Reform Bill. What additional assistance can he offer organisations such as the CABx?

The Government puts in place support for various organisations across the third sector, which is designed to be focused on the needs of individuals at an identifiably difficult time. I assure Mr Robertson that we continue to monitor the appropriateness of that level of support to ensure that we assist in that respect. The Scottish Government does not fund welfare rights advice or citizens advice bureaux directly. Local authorities fund those services because they are best placed to assess local needs for advice services and to put in place appropriate provision. The Government funds Citizens Advice Direct, which provides a telephone and e-mail service, offering flexibility for the user and taking some of the pressure off the face-to-face service at the bureaux, and we will continue to do so.

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Longannet Power Station (Carbon Capture Project)

12. To ask the Scottish Government what discussions it has had with the United Kingdom Government regarding the withdrawal of funding from the Longannet carbon capture project. (S4O-00349)

The Scottish Government has had proactive discussions with the UK Government in the period up to and since the UK Government decision on the Longannet demonstration project. Ahead of the announcement, the First Minister wrote and spoke to the Secretary of State for Energy and Climate Change, Chris Huhne, to raise our concerns and to ensure every possible option was considered. Following the recent disappointment over Longannet and the previous UK Government’s abandonment of the earlier Peterhead carbon capture and storage project, it is essential that Westminster clearly demonstrate its commitment to supporting the commercial development of CCS, not least when the continued commitment from industry is so clear.

The Westminster decision on Longannet is a heavy blow for Dunfermline and west Fife. Can the minister advise us on what the future might be in Scotland for the further development of the pioneering carbon capture work that was successfully started at Longannet?

The Longannet decision was a deep disappointment, not least for the Scottish Power team and the consortium that it led. They put in a lot of work, and they have left behind a legacy of invaluable advice on the topic.

In Peterhead, Scotland has a candidate for applying the CCS technology. I was in Brussels with a top team from Scotland yesterday evening, following the announcement yesterday morning of the excellent news about the joint arrangement between Shell and Scottish and Southern Energy to proceed with a pre-feed study to allow Peterhead to have a CCS project for Scotland. That is excellent news that offers a tremendous opportunity, which I hope we will all grasp.

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Credit Unions (Bank Charges)

13. To ask the Scottish Executive what support it gives to credit unions facing new or increased bank charges. (S4O-00350)

Credit unions are eligible to seek support through the Scottish Government’s enterprise growth fund.

The cabinet secretary will be aware that the Royal Bank of Scotland, the Bank of Scotland and Clydesdale Bank have this year—as recently as September—introduced full-blown business charges for credit unions. Will he commit to meeting those three banks to find a way in which they could charge preferential rates to credit unions under their corporate social responsibility policies?

I assure Jenny Marra that I regularly meet representatives of the banks. In the past couple of weeks, I have met representatives of Barclays and Lloyds Banking Group, and I regularly meet representatives of the remaining banks. I will certainly consider the point that Jenny Marra makes, but I must point out that all the associated issues, such as the regulation of the banks and credit unions, remain reserved matters, which is rather frustrating. United Kingdom authorities regulate all of them.

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Non-domestic Rates

14. To ask the Scottish Executive how many more businesses will be required to pay non-domestic rates in order for its plans to increase revenue from such rates to be achieved. (S4O-00351)

Forecasts of non-domestic rates income are based on the rateable value of non-domestic properties rather than the number of businesses that pay non-domestic rates, and they include estimates for growth in the underlying tax base as the economy recovers from the recession.

Like Mr Pentland, I hesitate to dampen the cabinet secretary’s optimism. However, even after the answers that we have heard, I ask him why he has not revised his forecast for the growth of business rates revenue from buoyancy in the sector, given that gross domestic product growth is only 0.1 per cent, the figure for buoyancy to which he referred earlier was only 0.91 per cent and, only this week, the Fraser of Allander institute halved its forecast for growth in Scotland. When will he supply the annual growth figures that Gavin Brown rightly requested?

I will respond to the Economy, Energy and Tourism Committee when all the issues on which I have to reply to it are at hand. I will do that timeously.

On the assumptions that the Government has made, the point that I made earlier was that there was buoyancy of 0.91 per cent at a time when the economy was in recession. It is clear that there will be improved performance when the economy is growing.

I point out to any members who are assessing the Fraser of Allander institute’s contribution that, contrary to some of the media headlines, it still predicted growth in Scotland and the Scottish economy in 2012. We have to consider carefully those points of assessment, but the Government regularly makes assumptions about the expected take from non-domestic rates, and I believe that the forecasts for the on-going period are entirely consistent with our assessment.

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Crown Estate (Finances 2010-11)

15. To ask the Scottish Government what the Crown Estate’s revenue and gross surplus was in Scotland and what the value was of its property in 2010-11. (S4O-00352)

For the period of 2010-2011, the Crown Estate Commissioners reported the revenue for Scotland as £11.9 million and gross surplus revenue as £9.9 million. Scottish Crown Estate property was valued at £207 million. Those Scottish public assets are administered by a body that is unaccountable to the Scottish Government and Scottish Parliament. All revenue from the Crown Estate in Scotland flows directly to the London Treasury. Those revenues should be invested in the development of Scotland’s offshore renewables industry and used to benefit communities directly. That is why we have called for the Scotland Bill to devolve the administration and revenues of the Crown Estate in Scotland.

The minister will be aware that the Crown Estate’s capital values in renewables in Scotland have increased from 6.4 per cent of its total property portfolio in 2008-09 to 31.5 per cent in 2010-11. In real terms, that is a 74 per cent increase over that two-year period. He will also be aware—

Mr Brodie, can I have a question please?

Yes, I am just coming to that.

The minister will also be aware of the Sovereign Grant Act 2011—passed only three weeks ago by the United Kingdom Government—which replaces the civil list and other grants to support the Queen’s official duties with a new grant that is based on a percentage of the profits of the Crown Estate. The Crown Estate is a business. For the next spending review, will the minister consider and explore what levies may be applied for the benefit of the people of Scotland to its surpluses as determined in Scotland and as remaining after the aforementioned contribution?

The member makes a number of points. The UK Treasury will be a huge beneficiary from increased investment in offshore renewable energy in Scotland. We believe that the Crown Estate should be accountable to Scotland and its people through the Parliament.

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Council Tax Freeze

16. To ask the Scottish Executive what the total cost of the council tax freeze between 2007 and 2016 will be. (S4O-00353)

The Scottish Government has fully funded the council tax freeze since it was introduced in 2008-09 by providing an additional £70 million each year. By the end of this session of Parliament, the cumulative cost of the council tax freeze will have been £630 million.

That £630 million is a false economy in that most households have saved an average of 50p per week but have lost more in the cuts to services that councils provide.

I am afraid that I need a question.

Households are losing out on services such as sheltered housing wardens and school clubs. Would it not have been better if the £630 million had been invested in national health service nurses, colleges, funding for local government and infrastructure?

I thank Margaret McDougall for raising those points. I am still in a bit of a quandary as to what the Labour Party position is on the council tax freeze. At first, it was against it. Then it thought that the bills would not go up. Then the run-up to the election suddenly focused Labour members’ minds, and they were for the council tax freeze.

The council tax freeze is fully funded and is helping hard-pressed families during these extremely tough economic times. For Margaret McDougall’s information, in the period 2008 to 2012, the freeze saved the average band D householder more than £300. Extending the freeze for the whole of this session of the Parliament will mean that the same household will have benefited by around £1,200 in total, based on the Government providing an additional £70 million each year.

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Non-domestic Rates (Impact on Post Offices)

17. To ask the Scottish Government how the level of non-domestic rates impacts on post offices in light of their role in local communities. (S4O-00354)

Post offices benefit from targeted business rates relief through the rural rate relief scheme and many post offices throughout Scotland also benefit from the small business bonus scheme. I am sure that Linda Fabiani will join me in welcoming the latest small business bonus scheme statistics, which show that more than 3,500 properties in her constituency benefit from the scheme, saving on average around £1,800.

I certainly welcome that.

Is the cabinet secretary aware that, under the judgment in the case of Assessor for Central Scotland Valuation Joint Board v Bank of Ireland, automated teller machines in post offices are now entered separately in the valuation roll and that sub-postmasters are liable for the rates on the ATMs? It seems to be at the discretion of local authorities whether that ruling is applied. Will the cabinet secretary enlighten me on whether that is at local authorities’ discretion? Can anything be done to alleviate that extra burden on small urban post offices?

I would have to look in more detail at the issues that Linda Fabiani raises, because I suspect that some such details are in contractual arrangements for individual properties with the relevant banking authorities. If she provides me with further details, I will explore the issue and give a full reply to the points that she raises.