Chamber and committees

I appreciate that point; we look to provide that information. I will use ATF as an example. It has its own budget line, and I like to think that we are transparent in that regard. When we open the fund, we set out what it can be used for. I am more than happy to look into particular concerns and to see whether we can provide any other information, but we try to be as transparent as possible.

Yes, absolutely.

Well, that is the thing. As was outlined in response to earlier questions, we have not had an FPMC scheme—

You are absolutely right. I think that there is no shying away from that. I have had engagement with Confor and the Woodland Trust, and I have heard those concerns directly. Ultimately, as I have said in this committee previously, this is absolutely not the situation that we want to be in, particularly at a time of record approvals. In the past year, we have planted around 15,000 hectares, more than half of which has been native planting. The cuts to the capital budget for this year mean that we hope to see in the region of 10,000 hectares of planting. That is a huge impact that means that we are not able to meet the targets that we had set for this year.

I understand and take on board the point about industry confidence; I have heard that directly. This is not where I want to be. I want to ensure that there is confidence and that we maintain the trajectory that we have been on, but—as I have already outlined—the capital funding picture that we face as a whole has been devastating to some of those budgets.

I absolutely appreciate the points that have been made. This is not where we want to be but, unfortunately, we will not be meeting our targets. Again, 10,000 hectares of planting is what we hope to achieve.

Brendan Callaghan might like to add further detail, but we are trying to maximise what we can do within that funding. I know that, through some amazing initiatives, such as the integrating trees network, we are looking at smaller-scale planting, which is really important. I also recognise the importance of other lines that you mentioned, such as AICs and other sources of funding. It might be helpful if Brendan Callaghan sets out some of the other work that we are doing to maximise the budget that we have.

Again, we are starting off with what the overall quantum of the funding would be for the immediate future; that is what we have announced. I do not anticipate making changes to that immediately.

Yes.

Absolutely. We have discussed the various iterations of the islands programme at length with the committee; we have had direct allocations, and we have run the competitive bid model before, too. Of course, there are pros and cons to each of the models, but we have genuinely taken on board the feedback that we have heard from committee members, as well as from people who are utilising the fund, and we have made changes and adapted the islands programme funding in response to some of that feedback.

Of course, if you or other committee members have been hearing other comments on the carbon-neutral islands programme and how it is operating, I am more than happy to listen to and take on board that feedback to see whether any improvements can be made for the future.

I have not had any submissions in front of me, so it is not possible for me to pull out that information. As I said, it will happen imminently if those decisions have been taken. However, as I have had no submission in that respect, I cannot set that out for you.

Thank you for the opportunity to speak with the committee in advance of the 2025-26 Scottish budget. As the Cabinet Secretary for Finance and Local Government set out in her fiscal statement earlier this month, the Scottish Government faces a very challenging situation as we continue to manage our finances through the current financial year and look to set the Scottish budget for the forthcoming financial year. In the face of that challenge, my portfolio is playing a substantive and real role in helping the Government to achieve its four priorities.

We remain steadfast in our support for rural and island communities. Scotland’s rural and island economy is a major source of growth for Scotland, delivering an economic contribution that was worth £39 billion—26 per cent of Scotland’s total gross value added—in 2021. However, we know that communities across our rural and island areas face unique challenges, including a higher cost of living, which is why we are determined to ensure that those challenges are addressed through all our policies.

I am clear that the funding that is allocated to my portfolio is targeted at improving opportunities in Scotland’s rural, coastal and island communities and has a direct critical role in enabling communities to thrive. Such measures include investing more than £6.7 million in Scotland’s islands to support the on-going delivery of the national islands plan; supporting island communities through our islands cost crisis emergency fund; and continuing to support Scotland’s islands to become exemplars of carbon-neutral communities through our carbon-neutral islands programme.

We have a strong record of providing direct support to our marine sectors through the European maritime and fisheries fund and, since our exit from the European Union, our marine fund Scotland. We will shortly announce up to £14 million of marine fund Scotland funding for 2024-25, which will support projects to achieve an innovative and economically sustainable marine economy that delivers real benefits for Scotland’s coastal communities, reduces carbon emissions and protects the marine environment. That funding will build on grants totalling more than £40 million to more than 270 projects since 2021.

More broadly, in relation to the marine directorate’s budget, we continue to prioritise our significant statutory and regulatory functions in key commitment areas, including fisheries science, which continues to be a priority, with its funding being maintained at existing levels.

The read-through of scientific expertise into tangible outcomes for Scotland is clear when we consider the marine directorate’s work on international fisheries negotiations. Our scientific, compliance and policy functions collaborate very effectively to seek the best outcomes for Scotland, and that work brought in more than £600 million-worth of fishing opportunities last year.

In relation to our rural economy, the agriculture sector is key to Scotland’s wider economy. The rural affairs budget provides essential financial stability to the rural economy through the provision of our direct payments. In 2024-25, more than £600 million is being provided in on-going support for the rural sector. Early payments began to reach farmers and crofters from Wednesday 4 September. In total, the initial payments are worth approximately £243 million and are being paid to more than 11,500 businesses across Scotland.

Through the agricultural reform programme, we are continuing to support farmers and crofters to reduce emissions and deliver biodiversity improvements through greater uptake of key activities such as carbon and biodiversity audits and soil analysis. That will be key to supporting the transformation of farming and food production in Scotland so that we become a global leader in sustainable regenerative agriculture and support the industry to achieve its targets.

Nature restoration is also key to achieving those targets. This year, in the programme for government, we have committed to planting 10,000 hectares of trees, with more than 4,000 hectares being used for native broadleaf species.

As the committee will be aware, with there being no clarity on future funding levels from the United Kingdom Government or on the extent to which the funding will remain ring fenced, we are missing a key building block for the 2025-26 budget. However, together with my counterparts in the other devolved nations, we are hoping for a reset in the relationship with the UK Government, as we join together to press for a satisfactory multi-annual settlement to be set out in the UK spending review.

I am happy to take any questions that the committee might have.

In my opening remarks, I highlighted the different ways in which the marine directorate contributes to our fisheries. As I said, there have been very tangible outcomes for our fisheries industry, such as the fishing opportunities that we have secured over the past few years.

The directorate has been restructured so that it follows more of a portfolio approach, but it would probably be helpful if I passed over to Rebecca Hackett to provide more details.