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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 27 January 2026
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Displaying 1629 contributions

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Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Daniel Johnson

It was essentially discretionary, and perhaps it needs to be. However, it cannot, therefore, be entirely objective, can it? Will there be more work to open up the final round of decision making? There is anxiety as to precisely what was used to make the final decisions once the scoring had taken place.

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Daniel Johnson

On a practical level, I am thinking about local authorities that are looking at bids for the next round of funding. Local authorities such as Angus Council and North Lanarkshire Council made unsuccessful bids, although North Lanarkshire is a priority 1 area. Will those bids and the fact that other local authorities did not submit any bids at all be taken into consideration?

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Daniel Johnson

In the convener’s constituency, the Ardeer project, which involves nuclear fusion, is part of the North Ayrshire bid. That has energy security implications and potentially much wider externalities, but that does not seem to be captured in the current methodology. Might those sorts of things be considered in future funding rounds?

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Daniel Johnson

That is very helpful.

I have a final question. The common thread through my questions is that productivity and ensuring quality are big complicated issues that cost money. The levelling up fund is worth £800 million in Scotland over the coming years, but that is set against a Scottish economy that is worth about £150 billion—give or take—a year. At a system level, what do you expect the outcomes to be, in financial terms or using other measures, from the levelling up fund?

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Daniel Johnson

Thank you.

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Daniel Johnson

The assessment was then made on a scoring system, using value for money and impact, and looking at distribution across the three core themes of regeneration, transport and culture.

I have two key questions. The first is on the initial indexation. As you have just discussed, the issues are complex; I agree about their entangled nature. Nevertheless, they are quite narrow measures to use to capture the situation in the first indexation, especially when they are given equal weighting. Is that the methodology to be used forever and for all time, or is work going on to try to embed some of the more complex issues, such as geography, in the assessment?

Secondly, you have stated a number of times that there is an objective decision-making process. From my reading of it, the final decision, once the scoring had taken place, was a ministerial one—

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Daniel Johnson

I welcome the secretary of state to the committee. It is refreshing to have a UK minister, and I encourage him to go back and encourage his colleagues to do likewise, because it is important for devolution’s sake that that happens.

I will focus on the levelling up fund, following on from some of the issues that Liz Smith and Kenneth Gibson raised. I begin with a contextual point. Productivity in Scotland, in output per hour, varies by about 40 per cent. It is at its highest in Edinburgh, at around £40 per hour, and at its lowest in the Western Isles, at £28 per hour. However, we do not need to go even as far as the Western Isles; in Glasgow and Dundee, it is about £31 per hour. There are huge disparities in relatively short distances.

I will ask you about two points. First, a thesis is required as to why that situation has occurred in the first place. Although there is a huge wealth of information on best value and impact, and six forms of capital are set out in the levelling up white paper, I do not necessarily see a thesis on why that has occurred. What work is going into that?

Similarly, is there a danger in focusing on local authority areas? You can invest in an area but, if we think about Edinburgh versus Dundee and Glasgow, some of the issues are about how the connections are made, and it is important that such decisions are not made in isolation. Are those contextual points areas of work within this space?

Finance and Public Administration Committee

Replacing European Union Structural Funds

Meeting date: 24 February 2022

Daniel Johnson

With that in mind, I will dig into the methodology a little more. My understanding of the way in which the funds were allocated is that, first, there was the indexation based on productivity, unemployment and qualification levels, all of which were given equal weighting.

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 1 February 2022

Daniel Johnson

I look forward to receiving that information. However, as we know, net present value factors in those costs—that is how it is defined.

Finance and Public Administration Committee

Budget Scrutiny 2022-23

Meeting date: 1 February 2022

Daniel Johnson

I would like to correct my oversight from yesterday. What is the quantum of unallocated funds? I have quickly added up the amounts confirmed in your letter, which seem to come to £276 million. Is that correct? Does that therefore leave £99 million of unallocated funds? I would like clarification.