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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 7 September 2025
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Displaying 1501 contributions

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Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

We are using the money that is generated from ScotWind to support the budget. Where we end up on the path to balance for 2023-24 will determine how much of the ScotWind moneys that are generated are able to be deployed in 2024-25. The ScotWind resource has proven to be a really important resource in supporting the budget. At the moment, I am not able to tell you how much of that will be able to be utilised for 2024-25, because that will be largely dependent on how much we need to draw down in 2023-24 for our path to balance. Once I know that, after we have had the supplementary estimates and the spring budget, I will be able to inform the committee how much will be available for drawdown in 2024-25, if that would be helpful.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

ScotWind moneys have been used to support the budget. In terms of the path to balance for 2023-24, we have to ensure that we can balance our budget, which we are legally required to do at the year end. Although I set out some of the in-year savings, because of the volatility of the budget and the fact that pay deals are beyond what was budgeted for, there is still a way to go in terms of the path to balance for 2023-24.

I want to minimise any drawdown of ScotWind, because the more we draw down in 2023-24, the less is available for 2024-25. I had set out in the medium-term financial strategy last May that we had anticipated having £350 million available to us in 2024-25 to support the budget. Any money that I need to use in 2023-24 to support achieving a balanced budget is money that is not available for 2024-25. You can see why we want to ensure that we minimise any usage—that £350 million, or whatever we end up being able to draw down for 2024-25, is an essential part of the budget to support public services.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

I will hand over to Neil Gray on that question. There are quite a lot of complexities in looking to the future beyond ScotWind, but I will let Neil answer on that.

On your fundamental point about tackling fuel poverty and making sure that the measures that are taken to tackle climate change are not exacerbating inequalities, I am very mindful of the discussions with the housing sector about moving to net zero. Heating systems have to be done in a way—this is a red line for us, as a Government—that does not push more people into fuel poverty because the systems are more expensive to run. We have to make sure, in every step that we take, that we are mindful of those who could benefit most if we get it right, but who could also be at risk if we do not get it right. Heating systems are one example.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

Yes.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

As a basic answer to your question I will say that those are matters for negotiations, but it is important to me that Crown Estate Scotland can continue to do the good job that it is doing.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

I will kick off. As I have touched on, the joint budget review was to take forward three strands of work. The first strand was to have a dedicated climate narrative in the budget document—which we have done. The second strand was to enhance the categorisation that we talked about earlier, which we have also done, although it is a work in progress.

The third strand was to develop and implement a Scottish Government-wide net zero assessment. That could be described as an iterative process, with the intention being to roll it out across the wider Scottish Government from late 2024. Following roll-out, there will be a review to ensure that it is fit for purpose.

That is about selecting a broad range of policies from across the Scottish Government to pilot the methodology and go further than we have so far. The benefit of that will be that we will be able to look at policies as they develop and check whether they are impacting positively and in the way that they need to, so that we meet our climate change goals. Once completed, the three strands will have taken us to a better place.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

There will be work in progress to ensure—as we go forward and are able to compare budget to budget, for example—that we are able to provide more monitoring of whether we are making the improvements that we need to make. The new methodology evaluates each spending line on its potential impact, either on emissions or adaptation.

The capital and financial transactions funding position for 2024-25 is £6.4 billion, and it apportions around 42 per cent of spend to positive activities in absolute terms; that means around £2.7 billion for positive spend for climate. There is a lot that would be described as being in the neutral space. The resource budget is £36 billion for 2024-25.

Clearly, most of that spend is on front-line services including the NHS, social security, local government and so on. Seventy-five per cent of the total resource budget is categorised as neutral spend, so it is not having a negative impact on climate, but neither is it having a positive impact. It is important to make that point when we bring in the resource budget. The bulk of it is going on staffing, which will not have a positive or a negative impact. The resource side of things will have a minimal carbon impact.

As this is the first year, there is potential for improvements to be made to the evidence base that is used to assess impact. We see this as the start of a process, not the end of the journey. Perhaps after the experience of this budget, the committee might be happy to revisit it to see where we might make further improvements.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

There will be such information in the evidence base on what makes the biggest impact. That is where we get into quite difficult decision making, because if there is an array of things that make an impact to some extent, but there is only a certain amount of money to deploy, we then have to make judgments about where the biggest impact will be at this moment in time. That does not mean that we will not revisit it. Philip Raines’s point was that the budget trajectory is not a straight line. There will be peaks and troughs, but the destination is the planting of more trees and meeting the targets. In years when there are big real challenges, we sometimes have to prioritise other areas.

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

Neil Gray may want to—

Net Zero, Energy and Transport Committee

Budget Scrutiny 2024-25

Meeting date: 23 January 2024

Shona Robison

I guess that I could not say, hand on heart, that it will all be fully functioning across every line and policy decision by the time of the next budget. It probably will not be, because it is complex, but we are on a journey that is about all the stages, including the policy development stage as well as the negotiations to agree policy and the amount of money that we are going to spend on it. When we are looking at policy, we need to embed analysis of the impact on net zero from the start and be able to set it out.