Chamber and committees

Today, the Scottish Government has published its latest Major Capital Projects Progress Update associated with the Infrastructure Investment Plan (IIP) for 2021-22 to 2025-26, which sets out progress on the delivery of infrastructure projects with a value over £5 million which have agreed Outline Business Cases or equivalent. The update can be viewed via the following link: https://www.gov.scot/isbn/9781835218976

The UK Government did not inflation-proof their Capital Budget which has resulted in nearly a 10% real-terms cut in our capital funding over the medium-term between 2023-24 and 2027-28. The decisions made by the UK Government to reduce our capital funding in real terms year on year, alongside the construction supply chain issues, labour shortages and high inflation means that we cannot deliver on all our capital projects within the funding available.

Further work is therefore underway to update the full pipeline of projects and programmes relating to the current IIP to ensure it is affordable and deliverable and provides best value for money. A refresh of the overall infrastructure pipeline is intended to be published alongside the Medium-Term Financial Strategy (MTFS) in May 2024.

As set out in the May 2023 MTFS, we plan to extend the current IIP period by one year, to 2026-27. This will ensure spending is aligned to the three missions for this Parliament and that it takes account of the fiscal and economic reality at the time. Work with stakeholders and colleagues is ongoing to develop the next IIP, which will be published in due course and in plenty of time to be adopted in 2027-28.