Chamber and committees

The steps that the Government takes on clarity and transparency are evident from the fact that I am here today and that I appeared before the Finance and Public Administration Committee several weeks ago in an evidence session on the subject, which was chaired by Mr Johnson. I also appeared in Parliament in early September to explain openly the changes and the choices that I was making, so on the question of transparency, this Government is delivering on what would be expected by the public.

I have not approached the matter from the perspective of applying a random reduction across portfolios. I have had to look, at this very advanced stage of the financial year, at what options remain available to me to reprioritise spending. There is more scope to do that in some areas of Government activity than in others. In the case of the changes in relation to health and social care, I was absolutely clear with the health secretary that whatever savings we were able to identify would be retained in that portfolio to support the very strong pay offer that has been made, particularly for low-income staff.

In relation to the reserve, we have carried forward the resources from the last financial year into this year that we had planned to carry forward. Obviously the budget for next year was predicated, in the resource spending review, on a carryover from this year into next. I have yet to identify those resources. That remains an on-going challenge to meet before the end of the financial year, and I am still working to ensure that I can balance the budget this year, which is my statutory duty.

On the question about the Government’s international engagement, we cannot be insular and have to be in contact with the rest of the world. I am quite sure that it is important that we maintain dialogue. The Prime Minister was criticised only yesterday for not going to the 27th United Nations climate change conference of the parties—I am delighted that he is now going. International dialogue is essential for every Government, including the Scottish Government.

The Covid recovery strategy sets out three high-level outcomes, which focus on reducing inequalities and supporting people who have been most affected during the pandemic. Those outcomes, which are shared with local government, are also relevant to the Scottish Government’s on-going response to the cost of living crisis. The Scottish Government is working in close partnership with local government, Public Health Scotland and the Improvement Service to promote the shared outcomes and to consider the experiences of different people and places across Scotland. Together, we are using a range of data sources, including national performance framework indicators, to better understand and evaluate progress towards our shared outcomes.

Annabelle Ewing puts her case powerfully, as I would expect. The constituents she represents in Cowdenbeath will be significantly affected in a negative way by a further programme of austerity and, in her case load, Annabelle Ewing will be dealing with the consequences of the last round of austerity from the UK Government.

The Chief Secretary to the Treasury has promised me dialogue in advance of the statement on 17 November. I will obviously commit myself to that at any occasion, in the hope of influencing the agenda in order to avoid a further round of austerity, which would be damaging for Ms Ewing’s constituents and members of the public around the country.

I point out that there was no interaction with the Scottish Government before the mini-budget in late September. There was absolutely no dialogue—indeed, not even the courtesy of an advance phone call—which is a breach of the normal protocols of dialogue. The current Chief Secretary to the Treasury has assured me that the normal protocols of interaction have been restored, and I will hold him to that, because it is vital that the Scottish Government and the Welsh Government—my colleagues in Wales and Northern Ireland are just as livid about this as I am—that we are properly engaged with to ensure that we can put forward the concerns and the views of members of Parliament and, in particular, of constituents such as those of Ms Ewing, which she has put to me today.

I have not had a meeting with the current chancellor, but I have corresponded with chancellors on a number of occasions, as has Kate Forbes, the substantive finance secretary. I point out that a number of letters from Kate Forbes, the Welsh finance minister and the Northern Irish finance minister were not replied to by United Kingdom chancellors for a significant number of months. Given that we get lectured in this Parliament about engagement with the UK Government, I point out that some of our correspondence quite simply does not get answered. I have had an apology for that fact and, I am glad to say, a reply to my most recent letter from the Chief Secretary to the Treasury. It is difficult for us to advance dialogue when there is nobody at the other end to engage on such questions.

I would certainly judge that to be the case, yes. The issues that Mr Johnson raises are all relevant to the post-Covid situation. The recovery measures that we are taking are not just Covid related; for example, they also address the issue of inequality, which Mr Johnson has raised. He has heard me say before that Covid exacerbated inequality, it did not create it.

The framework that we have in place through the national performance framework effectively provides a forum in which to address the issues that Mr Johnson properly raises. For the record, I would be very happy to answer any questions on those matters, should they be selected.

Those issues are being put to the United Kingdom Government regularly by the Scottish Government, and the First Minister indicated those points in her letter to the new Prime Minister on 27 October.

The point that Dr Allan raises about the particular challenges of energy costs for non-grid users is a particular problem that is the subject of active dialogue with the United Kingdom Government, and I assure him that we recognise the importance of that being taken forward.

I would also make the point that the wider inflationary pressures beyond energy costs, in relation to food and supplies, to which Dr Allan has referred, are significant issues, and they have been exacerbated by the decisions that have been taken, which have fuelled inflation. The lack of action on energy costs over the summer has contributed significantly to that experience, too.

The Scottish Government and the Convention of Scottish Local Authorities have agreed shared priorities for recovery, focusing on those most affected by the pandemic. The Covid recovery strategy brings together more than 70 actions that will support people across Scotland by increasing the financial security of low-income households, by enhancing the wellbeing of children and young people and by creating good, green jobs and fair work. The strategy also focuses on renewing public services to ensure that they meet the specific needs of people and communities.

East Ayrshire Council and South Ayrshire Council, which cover Elena Whitham’s Carrick, Cumnock and Doon Valley parliamentary constituency, have been allocated an additional £38.6 million and £34.4 million respectively, through the local government settlement, to respond to the Covid-19 pandemic. Those payments are over and above their regular grant payments, which, in 2022-23, have each increased by more than 10 per cent.

The Covid recovery strategy was informed by extensive stakeholder engagement, and the Scottish Government continues to work closely with a wide range of partners to ensure a successful recovery. We regularly meet stakeholders, including local government, community planning partners, the third sector and business organisations, to resolve barriers, identify solutions and maintain progress.

Our stakeholder engagement informs the discussions and decisions of the Covid recovery programme board, which I co-chair alongside the president of the Convention of Scottish Local Authorities, and it allows us to work together towards a shared national vision for recovery, as well as to support local recovery that is informed by local priorities.

Mr Greene raises a substantial point, and it is one that we need to keep in mind as we work our way through what will be a really difficult budget process this year, which will be compressed into a tight timescale. I will not rehearse all the issues around that, as I will have enough to say about it later.

The point that Mr Greene raises is one that I am anxious, at all times, not to lose sight of, because I am convinced—indeed, I am a strong advocate of this within Government—that the third sector can undertake work that will deliver better outcomes, more than likely for less money, if we can properly support and design that assistance.

This morning, with Mr Gray, the minister who is looking after the Ukrainian refugee programme, I visited a third sector venture in Aberfeldy, in my constituency. The group is called Feldy-Roo—I will leave members to reflect on the name—and is made up of local volunteers who emerged from the Covid programme that delivered vital assistance to families during the Covid pandemic. Those volunteers have created a hub for welcoming and supporting Ukrainian refugees and are now supporting more than 70 individuals in the community. That is working fabulously well, but it is a third sector venture that is achieving huge amounts of work with very small amounts of money. Therefore, I am anxious that we take Mr Greene’s point forward substantively during the budget process.

I reassure Jackie Baillie that I do not consider that the test or measure by which we deliver effective business support is the arrangements for having offices around the country. There are many changes in the way in which services are now being delivered, with an increasing move towards digital delivery of services and the remote working with which we have all become familiar. If the decisions that have been taken are a means of enabling us to deliver a wider range of business support, we should be prepared to embrace reform.

I will have much more to say about it this afternoon, but the existing financial arrangements will put enormous strain on maintaining the current network of arrangements that we have in place.

Finally, I want to make it clear to Jackie Baillie that the national strategy for economic transformation recognises the absolute centrality of regional economic policy. I welcome the opportunity to put that on the record today and to reassure Jackie Baillie about that, because there is no point in the Government pursuing an economic strategy that works only for some parts of the country. It needs to work for all parts of the country, and that is the focus of the national strategy’s regional economic policy approach.