Chamber and committees

Because I have secured a path to balance for this financial year and because of the late arrival of the supplementary estimates figure, I intend to carry that money forward into the next financial year. I am about to make funding allocations accordingly, as a consequence of receipt of that finance.

Given that I am confident about the financial position for 2022-23—the point that I have just made in reply to Mr Johnson’s question—I am now able to consider some additional financial commitments for next year.

I fully recognise the budget challenges that local government faces. In my budget statement in December, I outlined the Government’s commitment to working constructively with local government to create an effective partnership to assist in meeting that challenge. I use today’s debate to reiterate the Government’s willingness to engage in that process and to work with local government to undertake the reform that is necessary to achieve that aim.

Along with the commitment to working together effectively, I am committing to providing local government with an additional £100 million to support local authorities and their expenditure. That funding is designed to assist councils in making a meaningful 2023-24 pay offer to non-teaching staff, in recognition of the critical role that those staff play in delivering front-line services. I hope that that will enable a swift agreement in the Scottish joint council pay negotiations so that relevant staff receive a pay increase as early as possible in 2023-24.

I am interested in the line of argument that Liz Smith is developing because, essentially, she goes into territory where the tax system can be utilised to create incentives but, as she will appreciate, that is not within our range of responsibilities. Without me making a big constitutional song and dance about it, does she accept that those are legitimate areas where additional flexibility might be of use to us in trying to address the specific and real issue that she raised in relation to participation in the labour market?

I am happy to confirm that I was not in any way deliberately trying to make the minister chuckle. I was simply somewhat discomfited by the fact that I was having to move the motion on the resolution; I thought that a speech from me was to follow. [Laughter.] Thankfully, the minister came to my rescue on that.

The Scottish Government has received a number of representations from COSLA regarding the local government finance settlement. Ministers and officials regularly meet representatives from COSLA and individual local authorities to discuss a range of issues, as part of our commitment to working in partnership with local government to improve outcomes for the people of Scotland.

I will make two points. First, I think that Mr Johnson would accept that a decade of Conservative Government austerity has put cumulative pressure on Scotland’s public finances. I accept that, and I would have thought that he would have accepted it into the bargain.

Secondly, in the context of a very challenging fiscal environment, with all the issues and difficulties that we have faced, the Government has increased the resources available to local government by more than £570 million. That cash increase is there for local authorities to deploy in the appropriate way, as they see fit, to meet the challenges in their local areas.

The mental health budget has increased, and we have greater capacity to support individuals in order to assist in their recovery. The Government is taking a variety of other steps to enhance community mental health resources in our society; assistance to school communities is an example that comes to mind. The Government will endeavour, where the resources allow, to expand the investment in mental health and wellbeing services, as it recognises the importance of supporting people in their recovery.

Obviously, town centres and the retail community will be affected by a range of different factors. Covid and the impact of lockdown will be one, the move towards the greater use of online retail opportunities will be another, and a third will undoubtedly be the impact of proportionally more people working at home since the pandemic than before the pandemic.

The Government is actively undertaking work to look at the impact on town centres, and parliamentary committees have reported on the subject. All those different factors are researched and are reflected in the thinking that the Government brings together in its retail strategy.

As an independent public inquiry, it is for the Scottish Covid-19 inquiry to comment on its work as it progresses, including through its website: covid19inquiry.scot. In its role as sponsor, the Scottish Government remains committed to providing operational support, as the chair considers appropriate and necessary, in order to enable the inquiry to carry out its independent work and to ensure that the progress that has been made so far is continued. We want the inquiry to be delivered at speed, addressing the range of questions that people have, so that we can learn and benefit from any lessons as early as possible.

I am very happy to draw out as much detailed information as I can in a follow-up response to Christine Grahame. However, in relation to some key indicators, we have historically low unemployment and historically high employment levels across Scotland. Those factors will be felt acutely in areas such as the Borders and, in particular, in Midlothian, where there is such strong accessibility to labour markets. I will look to see what more detailed information I can provide to the member.

We have supported the National Union of Students’ think positive initiative, which signposts students to places where they can get help. Through student mental health agreements, student associations and institutions can work jointly on mental health practices.

There is work under way on the strategic delivery of that work, which is being taken forward by a working group chaired by the Minister for Higher Education and Further Education, Youth Employment and Training, and which is determined to ensure that we have the necessary steps in place to protect the mental wellbeing of young people and students.