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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 4 March 2026
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Displaying 1651 contributions

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Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

I have been looking at each of the enterprise agencies to try to understand the proportion of their budget that they spend on operational costs versus the proportion that they get out the door. My reading of your accounts is that you spend about £20.8 billion—or, rather, £20.8 million—on staff costs. Sorry, I just added several zeroes to your budget—I would not get too excited.

That is a much lower proportion than the other two agencies. Can you clarify what proportion of your budget goes on grants and direct business support and what proportion goes on management? Am I right in my reading of the £20.8 million figure? That is from last year’s annual report.

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

If you were able to provide a summary of that, that would be useful.

I have one last question before I hand over to colleagues. Your written submission states that the average increase in productivity achieved was 54 per cent. That strikes me as very high. I am also curious because you state that the average wage of the supported jobs was £30,600. That is only £1,000 more than the average wage for the whole of Scotland. It strikes me that there is a bit of a mismatch between the claimed productivity increase and the wages for those in projects that you are supporting.

11:30  

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

The figure is high to the point that I feel that it is untrustworthy; businesses achieving a 50 per cent increase in productivity would be world famous.

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

Thank you very much. I thank the witnesses on our second panel this morning for all their contributions. With that, I bring the public session to a close.

12:36 Meeting continued in private until 12:51.  

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

Under agenda item 2, we will take evidence from enterprise agencies, starting with Scottish Enterprise. I am very pleased that we have with us Adrian Gillespie, the chief executive of Scottish Enterprise, and Kerry Sharp, its chief financial and investment officer. I believe that they are both ready and willing to launch straight into answering questions.

Enterprise agencies are incredibly important in allowing us to support business, enterprise and industry in Scotland. We are carrying out pre-budget scrutiny, so we want to understand the financial effectiveness of the money that is provided to our enterprise agencies and the value that that creates. As a former businessperson, I like to understand the bottom line. Scottish Enterprise was provided with £225 million when the budget was set, but the figure rose to more than £280 million after budget revisions. What proportion of that figure was provided to businesses in the form of grants and loans in the previous financial year?

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

According to the table on page 97 of your annual report and accounts, your operating expenditure is £175 million. What proportion of that—

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

From reading your annual report, I slightly struggle to identify the hard-nosed and bottom-line points: the total sums going out the door and their effectiveness. Pages 13 and 14 contain several measures, such as 15,000 jobs being safeguarded, £442 million of innovation investment and £1.16 billion of capital expenditure. Obviously, those figures are in excess of your budgets; those are not direct outcomes. How do you ensure that those stated outcomes relate to your activities and interventions and that they are a fair measure of your impact?

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

That is understood. With that, I will hand over to Lorna Slater.

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

That information would be very useful. Although case studies would be useful, summary information on the totality of that funding and the high-level criteria that are applied would be most useful. My understanding is that the criteria are applied to particular sectors and to companies of particular ages. Could you clarify the criteria that are applied to the productivity funding and the other grant streams?

Economy and Fair Work Committee

Pre-budget Scrutiny

Meeting date: 17 September 2025

Daniel Johnson

I accept that. I do not think that anyone is arguing with the fact that the company needed the investment and that you were absolutely right to provide it. The issue is the mismatch. You put in £4.8 million in 2023, and £2 million was provided in the previous four years, but Alexander Dennis did not win a substantial proportion of the £41.7 million that was available under ScotZEB. There is a question to be asked about whether you were investing in the right things or whether the Scottish Government should have applied more conditionality to make sure that your investment made good for the Scottish economy.