Official Report 425KB pdf
Deputy First Minister Responsibilities, Economy and Gaelic
14:43
Mossmorran (Workforce Support)
To ask the Scottish Government whether it will provide an update on support provided to the Mossmorran workforce, following the early closure of the ExxonMobil Fife ethylene plant. (S6O-05547)
Last week, I confirmed that we will go beyond our £9 million commitment by extending targeted skills support to workers affected by the closure of the Mossmorran Fife ethylene plant, which was much due to the recommendations and representations that have been made by local members, including Annabelle Ewing, on behalf of the workforce.
Using this year’s budget, we will provide training needs assessments, delivered by Fife College, for those facing redundancy.
I of course very much welcome the Scottish Government’s original £9 million support package, plus the newly announced job-search support to be provided in tandem with Fife College. Has the Deputy First Minister yet heard from the United Kingdom Government as to whether it intends to match the Scottish Government’s support to help to deliver a just transition for Mossmorran?
The short answer is no—I have not had any confirmation from the UK Government that it will, at least, match the Scottish Government’s commitment. I have called on the UK Government to do that and wrote again today to urge it to do so. It is particularly critical off the back of the debate last week in which the Parliament joined together to call on the UK Government to provide the additional support to match the Scottish Government’s support. I will continue to press the UK Government to match our commitment to the workers at Mossmorran.
Ministers indicate that they are supporting the Mossmorran workforce. I welcome the pledge of £9 million over three years and the job search that has been announced.
Of the £9 million, £3 million is being made available immediately. Will the Deputy First Minister publish a breakdown of how much of the £3 million has been released and what has been delivered so far for the workforce and the contractors who are affected by the issue?
We will keep the Parliament informed about the spending of the funding. In relation to the first announcement, the funding offers immediate help while shaping how we deliver a fair transition for the workforce. It will be informed by the training needs assessments that are delivered by Fife College. We have started our work by talking to Fife College and the workforce to understand what the needs are; our funding will meet that need.
I imagine that we will be able to provide updates to the Parliament, but, at this stage, instead of giving a lump sum, the funding will be demand led and based on what the workforce needs.
Shipbuilding (Financial Support)
To ask the Scottish Government what recent assessment it has made of the finance available for commercial shipbuilding projects at Scottish shipyards, including how the competitiveness of this compares with that of other European nations with commercial shipbuilding industries. (S6O-05548)
We remain firmly committed to securing a sustainable, long-term future for shipbuilding in Scotland, which I know is very important to Mr Sweeney.
We are actively engaging with the United Kingdom Government’s National Shipbuilding Office, which is exploring potential strategies for targeted financial interventions that may take place across the wider public sector and in the private finance space, to ensure that shipbuilding companies in Scotland remain competitive on a global scale. We also continue to engage with the UK Government on the review of the national shipbuilding strategy, emphasising Scotland’s strengths in shipbuilding and maritime technology.
Paul Sweeney and I were both at an event yesterday that demonstrated how strong the Scottish shipbuilding sector is.
I share the Deputy First Minister’s enthusiasm and the impression that was created yesterday by the event at Rosyth dockyard to cut the first steel on the fourth Royal Navy type 31 frigate, HMS Bulldog. Shortly afterwards, the second ship in the class, HMS Active, was rolled out of the new indoor shipbuilding hall in dramatic fashion.
Scotland is now at the forefront of Europe’s largest naval shipbuilding programme, but the contrast with the lack of commercial shipbuilding activity is stark. The main reason for that is the lack of state-backed finance for commercial shipbuilding projects. Germany has used state-backed finance for shipbuilding for at least 30 years. Key instruments include the commercial interest reference rate ship financing programme, administered by the German state investment bank, which offers long-term fixed-rate loans for buyers of German-built ships. Will the Deputy First Minister commission a Government-led effort to build a similar state-backed financing scheme in Scotland that would give confidence to our remaining small commercial shipyards, including Ferguson Marine (Port Glasgow) Ltd?
There are two parts to that question. First, I agree with Paul Sweeney that the strength of the workforce and the pipeline of orders that are coming through on the defence side are indicative of how much respect there is globally for the skills of Scottish shipbuilders.
Secondly, on the point about financing, there are certainly options for us to consider, through the enterprise agencies and the Scottish National Investment Bank. On shipbuilding in particular, there is an opportunity to work closely with the UK Government’s National Shipbuilding Office to ensure that the Scottish shipbuilding industry benefits from the national and international opportunities of its shipbuilding strategy. We will continue to engage with the NSO, and I am more than happy to keep Mr Sweeney updated on the progress that we make.
Does the Deputy First Minister agree that it is vital that, in supporting the shipbuilding industry in Scotland, the Scottish Government works to deliver economic and social best value, given the history and the heritage of the industry and the industrial capability and capacity that it represents?
We absolutely recognise the economic and the social impact of the industry. Stuart McMillan, too, has recognised its social impact through the strength with which he has represented Inverclyde and the Ferguson Marine shipyard. I was delighted to meet the GMB representative Alex Logan, along with the First Minister, in the past few days, off the back of an invitation from Stuart McMillan, to understand just how critical it is that we retain those skills.
Food and Drink Sector (Exports)
To ask the Scottish Government what assessment it has made of the economic contribution of the Scottish food and drink sector to Scotland’s international exports. (S6O-05549)
Scotland’s £19 billion food and drink sector remains vital to our economy, with its products making up around 30 per cent of total United Kingdom food and drink exports.
Despite challenging trading conditions, 2025 data from His Majesty’s Revenue and Customs shows that whisky and salmon exports remain strong, being worth £5.4 billion and £828 million, respectively, which reflects the sector’s exceptional businesses. We will continue to back their growth in new and existing markets through our six-point export plan and our £15 million investment in Scotland’s industry-led food and drink strategy. Those are just two examples of how we are supporting the sector to ensure that it has a prosperous future.
Despite the recent figures that show that Scotland dramatically outperforms England on food and drink exports—in fact, we export more than six times as much per person—Scotland continues to face unnecessary barriers as a result of Westminster decisions, including on Brexit and trade deals that do not reflect Scotland’s economic priorities, not to mention the Labour Party’s crippling tax on Scotch whisky. What impact could a fresh start with independence have in allowing our world-class food and drink sector to reach its full potential?
Clearly, if we were an independent state, we would have full control over our own trade strategy, and we could decide how to work with our European partners as part of our relationship with the European Union, as well as being able to make trade deals right around the world. I am sure that one objective that an independent Scotland would have would be to forge a much closer relationship with the EU, especially given issues such as the current geopolitical situation. That would give us an ideal route for supporting the further export of Scotland’s food and drink products and the rest of our exports.
Orbex (Scottish National Investment Bank Investment)
To ask the Scottish Government, following Orbex entering administration, what the likelihood is of the public purse receiving a return on the money invested in the company by the Scottish National Investment Bank. (S6O-05550)
Orbex entering administration is extremely disappointing, particularly for its workforce and the local community. As the constituency representative, Richard Lochhead has been engaging with me and the company, and I had a conversation just last week on the progress that is being made.
The process is now being led by the administrator, and the position on any return to creditors, including the Scottish National Investment Bank, will become clear in due course. I am currently having weekly meetings with the administrator.
It has been reported that £29 million was invested in Orbex via SNIB, all of which could potentially be lost. That follows the cancellation of the spaceport project in Prestwick in my region last year. A lot of public funds and a lot of jobs have been lost. How does the Government plan to support the space sector in the long term so that we do not see yet more projects going under, particularly in my region?
I share Carol Mochan’s aspirations for the space sector, which we believe is a key priority for Scotland. It was identified as a key priority in the national strategy for economic transformation and in the innovation strategy. A lot of the support for the space sector has come out of those strategies.
We are world leading in small satellite manufacturing, with Glasgow building more satellites than any other place in Europe. It is important that we continue to speak to the strengths of the space sector, while recognising the challenges that Carol Mochan has rightly identified.
On the point about investment, it is worth acknowledging that risk is inherent in the operational and independent investment decisions that the SNIB makes. However, part of the opportunity in a growth sector such as space is to provide patient capital and to take on risk where the market will not. That is what will drive faster growth in sectors such as the space sector.
Question 5 has been withdrawn.
Banking Hubs
To ask the Scottish Government what assessment it has made of any benefits brought by the banking hub model that is operated by Post Office Ltd and funded by Cash Access UK. (S6O-05552)
Regulation of financial services is reserved and, as such, the Scottish Government has no powers to undertake any assessment of the Financial Conduct Authority’s access to cash regime, including the effectiveness of banking hubs. However, we engage regularly with the FCA, LINK, the Post Office and Cash Access UK on subjects such as access to cash, and we have raised Scotland-specific concerns and impacts following the introduction of the FCA’s new rules. The FCA is undertaking a post-implementation review of the regime in 2026, so we will have further opportunities to engage directly with it during that process.
The news that Kilsyth is to receive a banking hub is very welcome, as it has lost all its retail banks. However, Cumbernauld, which has also lost a number of retail banks, will not similarly benefit, largely due to the criteria of the current scheme being quite narrowly focused on access to cash. Does the minister agree that, in reviewing the scheme, there is an opportunity to take account of the wider range of benefits that can be brought by a banking hub model, including, for example, access to face-to-face appointments with banking personnel?
We all recognise the importance of face-to-face banking services in our local high streets, and I welcome the fact that at least one community in the member’s constituency will benefit from that. I remind members that any organisation or individual can ask LINK for a reassessment under the criteria if any decision has not gone its way in the past.
Scottish Government officials are working closely with the FCA. A forum on access to cash took place in October, just a few months ago, which gave us the opportunity to raise Scotland-specific concerns about some of the criteria and the impacts of the current regime directly with all the various players, including the FCA, LINK and Cash Access UK.
I agree with the member that there is still a lot of work to do to look at post-implementation of that regime and to make sure that Scotland’s needs are taken into account. In the meantime, we will continue that engagement with the FCA.
Tourism Industry
To ask the Scottish Government how it is supporting the tourism industry. (S6O-05553)
Tourism contributes more than £4 billion to our economy each year, and we continue to support the sector to thrive. In the draft budget, we allocated VisitScotland almost £40 million a year until 2029. That includes £1 million over the next two financial years to continue growing direct international connectivity, for example.
I can give some examples of what is happening in tourism at the moment. We have worked to improve connectivity from key markets, securing many new routes and adding substantial new capacity, with almost 27,000 new seats on aircraft, which is good news. More overseas visitors visited Scotland in the first half of 2025 than visited anywhere in the United Kingdom outside of London and the south-east. In addition, the budget includes £4 million per year for the next three years for the rural tourism infrastructure fund.
It is no exaggeration to say that the tourism sector is in a state of crisis. Barely a day goes by without seeing news in the media about a once-thriving business closing or a hotel, bar, restaurant or cafe shutting its doors due to rising energy and employment costs. Of course, the latest blow is the revaluation of non-domestic rates, which we continually hear will force closures right across the country.
We have seen some relief in the budget, but that will go nowhere towards addressing the concerns that many in the sector have. In Northern Ireland, the Sinn Féin finance minister has announced a pause to the revaluation because of the crisis there. Why will the Scottish Government not do the same?
I have a regular dialogue with the tourism industry in Scotland, and I understand that, in many cases, bookings are looking healthy for the coming summer, so I do not want Murdo Fraser to talk down Scottish tourism. I also understand that it is now officially Scotland’s biggest employer, and many new investments are being announced in the tourism sector, notwithstanding the very real pressures that the member has raised—in particular, energy costs, employment costs and VAT, which is one of the biggest subjects of a petition that is circulating in many hotels and pubs in Scotland. Those issues are reserved to the United Kingdom Government; they are not the responsibility of the Scottish Government.
On rates revaluation, which has been a regular subject in exchanges, the revaluation transitional relief that has been announced will protect those who are most affected by revaluation and will cap increases in gross liabilities until the next revaluation in 2029. The revaluation transitional relief that has been announced will save taxpayers an estimated £108 million over the next three years, ensuring that the gross bills of around 60,000 properties are lower in 2026-27 than they would otherwise have been. The Scottish Government has also announced that we will pass on to hospitality and pubs the consequentials of what was announced south of the border. A number of other rates assistance measures are in the pipeline.
Those are very real issues, but the big issues that the member mentioned are reserved for the UK Government, and we need it to play its role. The petition that is circulating at the moment is about VAT, which is a big hit on the viability of businesses.
Yesterday, at a rural leadership meeting, we heard from a hotelier on the west coast. They are doing extremely well, with bookings all year round, but after the increase in business rates, hardly anything is left by way of profit, and it is barely worth continuing. Businesses will close. Is it not the case, as I have just discovered in the past few days, that the estimates on which the Government relies for the amount of money that it will raise from its current proposals contain no allowance whatsoever for the closure of businesses on any significant scale? If that approach is wrong, and businesses close, surely the budget will end up with less money being brought in than would be if the business rates were set at a fair and affordable level. Is that not only wrong but financially reckless and counterproductive?
Fergus Ewing will be aware that there is a review of business rates in the sectors that have been referred to, which is independently chaired and will take place over the next months and years. In the meantime, the Scottish Government has introduced transitional relief in our budget. We offer 15 per cent relief for properties that are liable for the basic or intermediate property rates in those sectors, capped at £110,000 per business per year. The Government is taking action to cap the increases that the member referred to, which is why I urge all members from all parties—or no party—to support the budget.
Economic Strategy
To ask the Scottish Government what its response is to the Institute of Chartered Accountants of Scotland stating there is a “lack of a clear, long-term economic strategy for Scotland”. (S6O-05554)
The Government has published a long-term economic strategy, setting out our 10-year mission to build a fairer, greener and growing economy. Our green industrial strategy also ensures that Scotland will secure maximum economic benefit from opportunities that are created by the global transition to net zero.
We are delivering on that strategy. For example, for the past 10 years, Scotland’s economy has outperformed all parts of the United Kingdom except London in attracting inward investment, and we continue to attract investment to drive our future growth. I was delighted that, last week, Lenovo, the world’s biggest producer of personal computers, announced that it had chosen to base its new artificial intelligence technology centre in Edinburgh, against European competition. That is just one of many examples of companies around the world—and, indeed, our own business community—showing confidence in the future of the Scottish economy.
It is shocking that only 6 per cent of accountants in the Institute of Chartered Accountants of Scotland said that they were confident in the state of Scotland’s economy following last month’s budget and 78 per cent said that they were not. The largest area of concern was the need for long-term economic and tax strategies, which the budget fails to provide. Why is the Scottish Government punishing talent and businesses with high taxes?
As the member will be aware, 55 per cent of Scottish taxpayers are now expected to pay less income tax in 2026-27 than they would have if they lived south of the border. The level of unemployment in Scotland is lower than it is in the rest of the United Kingdom. We have seen higher growth in gross domestic product during the years since the Government came into power, and a higher level of productivity. I have already given an example of our success in attracting inward investment to the country.
However, it is a tough and fragile time for many businesses and for our economy, which relates to the previous question in relation to employment costs, energy costs and VAT in tourism and some related sectors. That is affecting Scottish businesses as much as it is affecting businesses in the rest of the UK, and that is why we need the UK Government to play its role as well.
Scotland’s economy is being hammered by a UK Government that is out of touch with Scotland’s needs. Rising employer national insurance contributions, the lack of support for Scotland’s industries and the energy profits levy are costing jobs and investment and are putting the security of a just transition and Scotland’s future at risk. Does the minister agree that strategic delivery for Scotland’s economy requires an end to the reckless economic decisions that have been taken south of the border?
Yes, and I hope that those in the Labour Party and the UK Government are listening, because Labour’s poll standing reflects the fact that it is not looking after the Scottish economy.
As the member rightly said, at present, macroeconomic, fiscal, migration and other levers, in particular in relation to the oil and gas industry in her constituency, all lie with the UK Government, and the policy levers lie with the UK Government as well. If we had more powers in the Scottish Parliament, and if we were an independent state with full economic levers allowing us to work with the global community, we would be able to deliver a far more prosperous economy and a far more prosperous Scotland.
Finance and Local Government
The next portfolio is finance and local government. Question 1 was not lodged.
Point of Entry Levy Consultation
To ask the Scottish Government when it will publish responses to its consultation on a potential point of entry levy. (S6O-05556)
The responses to the consultation on a cruise ship levy, which included a scoping question on a potential point of entry levy, will be published next week alongside the analysis report.
I welcome the minister’s response. He will be aware that, in Orkney Islands Council and among stakeholders in the tourism sector, as well as in the other main island groups, there is a belief that the only way of making a visitor levy workable in an island context is through a point of entry levy. I look forward to seeing the results of the consultation that will be published next week.
I regret that there has been more of a delay than either of us would have wished, but can you say any more about the intent of any future Government to deliver on the responses in relation to such a levy?
Always speak through the chair.
When we publish the information next week, the member will see the output from that consultation. I recognise the high levels of interest in the matter from island councils.
Clearly, what happens after publication will depend on the format of the next Government and how it chooses to take the matter forward. The current Government is very interested in continuing discussions to see what potential there is to give that power to local authorities.
Question 3 comes from Rachael Hamilton, who joins us remotely.
[Inaudible.]—budget 2026-27—
Ms Hamilton, could you repeat your question? We missed the first few words.
Budget 2026-27 (Women in Enterprise)
To ask the Scottish Government how much it has allocated in its draft budget 2026-27 to support women in enterprise, including in the Scottish Borders. (S6O-05557)
The Scottish Government is committed to advancing women’s entrepreneurship across Scotland, including in the Scottish Borders. In the draft Scottish budget 2026-27, the entrepreneurship and innovation budget has again increased, which reflects the priority that we place on supporting entrepreneurs.
Supporting women to start and scale up businesses is central to our broader enterprise strategy, and we aim to ensure that women benefit directly from our wider entrepreneurship and business support programmes, including the recently announced £2 million ecosystem fund.
In addition, we are currently piloting the pathways pre-start activity in the south of Scotland, which has been backed by £3 million of investment through South of Scotland Enterprise since 2024.
Freedom of information data from the Scottish Government agency South of Scotland Enterprise, covering the financial years from 2021-22 to 2025-26, shows that just five loans worth £481,500 were awarded to female-led organisations, compared with 22 loans totalling more than £5.48 million to non-female-led organisations. Given that data, does the finance secretary believe that women who are setting up businesses in rural areas such as the Scottish Borders are being supported equitably?
I am disappointed to hear those figures. I will certainly look into the reasons for those decisions. Obviously, South of Scotland Enterprise makes decisions at arm’s length from the Government, but I am concerned to hear that so few loans have been given to female-led organisations.
As I said in my initial answer, work is going on with the pathways pre-start activity, which is specifically designed to support underrepresented entrepreneurs, including women, with awards of up to £75,000.
I will write to Rachael Hamilton once I have managed to look into the figures that she has shared.
Question 4 has been withdrawn. I call Maggie Chapman, who joins us remotely.
Budget Consultation Processes (Impact on Third Sector Organisations)
To ask the Scottish Government what assessment the finance secretary has made of the impact of lengthy national budget consultation processes on the financial sustainability of third sector organisations in north-east Scotland. (S6O-05559)
The Scottish Government greatly values the vital role of the third sector across Scotland, and we recognise the real pressures that it is facing, given the financial context.
We are committed to doing what we can to improve the sustainability of the third sector. The late timing of the United Kingdom Government budget has had a knock-on effect on the timing of our budget, but significant work has been undertaken since the publication of our draft budget to ensure that as many third sector organisations as possible are notified of funding decisions for the forthcoming financial year.
In Dundee, Dundee Contemporary Arts, the Dundee Rep, Dundee International Women’s Centre, Harris Education and Recreation Association and many others are at risk of losing funding or closing projects. In Aberdeen, the anti-poverty fairer Aberdeen fund could be slashed, music lessons and libraries in schools cut, and support for unpaid carers removed.
Organisations are already reducing staff hours, not renewing contracts or closing life-changing and life-saving services because of delays to funding information. Given that our communities rely on local government and third sector services to survive, what reassurances can the cabinet secretary give to workers, communities and organisations that the delays that cost people their jobs, livelihoods and services will not be repeated in future years?
I said to Maggie Chapman that the lateness of the UK Government budget has meant that there are challenges. However, she will be aware that, through the fairer funding pilots, we are trying to ensure that there is certainty over multiple years. As I also said in my initial answer, we are trying to get as many of the grant letters as possible out the door, to give people that certainty.
If Maggie Chapman wants to write to me with the specifics of those organisations—some of which might rely on local funding rather than national funding—I would be happy to look into the details that she has provided.
Many charities that are facing rising costs and falling donations need much more security and stability to enable them to plan and develop. I welcome the introduction of the new fairer funding pilot, which will provide additional multiyear funding in the form of 45 grants to organisations in Scotland. That is an important first step in more widely mainstreaming multiyear funding agreements across the third sector. Will the cabinet secretary say more about how that funding will support organisations, particularly in planning for the future and making the most of their resources?
Increasing multiyear funding opportunities is the backbone of the fairer funding principles. The recent announcements of multiyear funding for the delivering equally safe fund, disabled people’s organisations and advice services have increased the total funding by a further £29.4 million. Where it is possible to do so, providing multiyear funding increases the stability of the third sector. I am pleased that the early evaluation of the pilot indicates the positive difference that two-year funding certainty has had on the stability of the organisations, on their ability to plan further into the future and on staff recruitment and retention.
Visitor Levy (Scotland) Act 2024 (Child Disability Payment Exemption)
To ask the Scottish Government whether regulations rectifying the oversight whereby children in receipt of the Scottish child disability payment were not receiving an exemption under the Visitor Levy (Scotland) Act 2024 will be introduced before the end of the current parliamentary session. (S6O-05560)
The Visitor Levy (Scotland) Act 2024 Amendment Regulations 2026 were laid in the Scottish Parliament on 9 January 2026. The regulations expand the list of qualifying benefits to include all forms of disability assistance that are provided under the Social Security (Scotland) Act 2018, a broader range of United Kingdom disability and war-related benefits and equivalent payments that are received under European Union/European Economic Area, Switzerland, Gibraltar, Northern Ireland or UK-Ireland social security arrangements where the recipient is resident in the UK.
I thank the minister for that clarification and for all the work that he and his team have done to get the regulations on board. The regulations will make a massive difference to many families with disabled children. It is good to see that at least one promise has been followed through by this Government.
I am not entirely sure that there was a question in there, but I am sure that you will find something to say, minister.
Jeremy Balfour’s comments are a testament to what can be done when there is a constructive working relationship across the Parliament to deliver for the people of Scotland. This Government is keen to engage with all members where we can work together to improve the lives of those whom we serve.
The regulations are a good example of how the extra costs that disabled people face can be addressed through initiatives that Governments bring in. Does the minister agree that there is therefore a need to look across Government portfolios to reduce the extra costs that disabled people face, including in relation to things such as the visitor levy?
We took those steps on the visitor levy because we believed that that was the right thing to do, for the reasons that Pam Duncan-Glancy highlighted. I am sure that whatever Government is next in power will be keen to continue considering opportunities in its work to address the additional costs that disabled people face.
Local Authority Funding Settlements
To ask the Scottish Government what steps it is taking to ensure that local authorities receive fair and sustainable funding settlements. (S6O-05561)
The total local government finance settlement has increased by £5.4 billion, or 52 per cent, between 2016-17 and 2026-27. That is a real-terms increase of almost 10 per cent, despite austerity measures from the United Kingdom Government.
Sustainability requires reform and innovation across the public sector to deliver joined-up and preventative services, as set out in the public service reform strategy. The Scottish Government will continue to work in partnership to address the challenges that councils are facing and ensure that we are operating the sustainable, high-quality public services that communities expect and deserve.
In the past decade, North Ayrshire Council has made cuts of more than £90 million to local services. Last week, residents were notified that the local health and social care partnership is consulting on cuts to social care, with one option being to restrict social care to people who are assessed as being at critical risk. Will the cabinet secretary intervene to provide fair and sustainable funding for North Ayrshire Council so that social care and other local services are protected from further cuts?
I mentioned in my initial response the increase in the local government settlement over the years. This year’s settlement is £15.7 billion. Importantly, within the general revenue grant, there is £253 million of flexible resources. The national health service has received a significant real-terms increase as well. That is not to say that there are not challenges within health and social care partnerships—there absolutely are, because of demographic changes and the pressures on local services. That is why those real-terms increases are important.
Going forward, the solution will require transforming local services, including in our health and social care partnerships. I am happy to correspond with Katy Clark on the specifics if she would find that useful.
The cabinet secretary has stated that the settlement is fair and sustainable, but Clackmannanshire Council, which is in my region, projects a budget gap of £7.34 million for 2026-27. As councils across Scotland are forced to consider double-digit council tax rises for a second consecutive year, will the cabinet secretary stand by the Government’s claim that there is no need for substantial council tax rises to balance local government budgets?
The main call from the Convention of Scottish Local Authorities, which is the representative body of local government, was for full local discretion over council tax. COSLA leaders, including the Tory COSLA leader, were adamant that they wanted to have full local discretion over council tax. That discretion means that there will be differences in local decision making. For example, Glasgow City Council is increasing council tax by 5.9 per cent, while Tory-controlled Moray Council is increasing it by 10 per cent. There will be variation across Scotland, but that is what local democracy is all about.
Will the cabinet secretary advise members what specific increases in funding Labour has proposed for local government in the 2026–27 budget, and where it has said that the money will come from? What will be the impact on services of the £17.127 million in public–private partnership payments in 2026–27 that Labour saddled North Ayrshire Council with, and the burden of £6.8 million in employer national insurance contributions, which together equate to a third of all moneys raised in council tax this year?
Kenny Gibson is quite right to point to the burdens on local government of the private finance initiative legacy contracts and of the higher employer national insurance contribution costs.
The Labour Party had no specific asks and made no proposals on local government during the budget negotiations, but that is nothing new.
Learn to Swim Programme
To ask the Scottish Government how much funding it has allocated to local authorities for the delivery of the learn to swim programme in its budget 2026-27. (S6O-05562)
We are providing £20 million to ensure that all children and young people in Scotland can take part in sporting activities, harnessing the energy and excitement of the upcoming 2026 summer of sport. That includes the universal learn to swim offer for every child in Scotland, which will continue beyond this year. A national project group has been established to support implementation, provide oversight and enable learning and consistency across partners. Local authorities will be able to draw down from the costed implementation plan, in line with their local context.
The cabinet secretary will be aware that I support and welcome any measures that will give our children the opportunity to learn to swim, which is a life-saving skill, but it is vital that councils are fully funded so that that is fully delivered. Will the cabinet secretary say how much of the £20 million funding she expects to be used for the universal learn to swim offer? Will the amount that the Scottish Government allocates help with the full roll-out? Is that based on every local authority being allocated funding for delivery, including facility, teaching and transport costs? Has there been recent engagement with local government on the deliverability and affordability of the Government’s proposed learn to swim programme?
As I said in my initial answer, work is on-going on the modelling, which will indicate the timeframe for full implementation. The programme will be fully funded by the envelope that is provided, and officials are in the process of working with the Convention of Scottish Local Authorities on the details of that. It is important that that is done in partnership, and those discussions are on-going.
Although I echo Neil Bibby’s welcoming of the initiative to ensure that all children get access to swimming, that access is not equitable at the moment, with many pools closing. In the cabinet secretary’s deliberations about how to deliver equitable access to swimming, was any work done to show whether we should use the money in school curriculum time, so as to fish where the fish are, to use an old phrase?
It is hard to tell whether that was a welcome, but the implementation plan supports the roll-out of the national primary school swimming framework. That partnership involving local government and Scottish Swimming aims to ensure that every primary school child has the opportunity to learn to swim. We should all welcome that, without finding reasons to moan about it.
That concludes portfolio questions on finance and local government.
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