Chamber and committees

For Scotland’s colleges, the 2026-27 budget delivers a combined increase of £70m in resource and capital funding, equivalent to 10% uplift on last year’s budget, taking our total investment in core college funding to £764m. This enables colleges to continue to deliver high quality education and skills to learners across Scotland. Since its inception in July 2023, the Tripartite Alignment Group has been working collaboratively to identify and implement workable flexibilities to further help ease colleges’ financial pressures while ensuring accountability for public funds.

The budget invests over £2.4bn in post school education and skills and reinforces our steadfast commitment to free education. It includes a significant real terms increase in our investment in Scotland’s College and University sectors so that people of all ages have the opportunity to fulfil their potential, while also ensuring that priority workforce needs are met.

The Scottish Government is working to identify a shortlist of sectors for focused skills planning. Beginning in February, my officials will engage employers, colleges, universities, and regional partners to help refine this work. We will also share further details with the Education, Children and Young People Committee, including our emerging findings. Our intention is to formally publish this work in the Spring.

Regarding the 4 main reported governance issues at Historic Environment Scotland, with the exception of the absence of the Accountable Officer, Ministers had a limited role in the remaining 3 of the 4 areas highlighted by Audit Scotland given their operational nature although we had some awareness of the Archive House issues.

After gaining Scottish Government consent in 2021, following lengthy discussions over a number of years, HES announced their plans for Archive House in 2023: https://www.historicenvironment.scot/about-us/news/plans-unveiled-for-new-archive-house/.

Consent was given by Scottish Government on the clear understanding that HES considered the project affordable within existing budgets and that they would not revert back for additional funding from the public purse for this project.

In early 2024, Scottish Government became aware that costs for Archive House had significantly risen beyond the agreed circa £10 million. HES were advised that a revised business case would be required by Scottish Government for the Archive House project.

Following a decision at the HES Board meeting in May 2024 to stop the project in its current form, work was initiated at HES under the auspices of the Archive House Project Board to develop an Interim solution for HES archives pending a longer-term plan.

On 29 July 2024, HES announced it had adjusted their plans for the Archive House facility detailing a revised approach to the development of a new home for its extensive archive collections.

Currently HES continue to engage with the Scottish Government, Public Service Reform Culture Cluster on shared storage solutions and are working with the HES Board to identify alternative solutions to Archive House.

Regarding the absence of the Accountable Officer at Historic Environment Scotland, on 28 May 2025 the Chief Executive and Accountable Officer of Historic Environment Scotland informed the Scottish Government that her absence from work which had begun on 2 May 2025 would be greater than four weeks, and that she expected to be absent for a further period. In doing so she also confirmed that during this period there would be no major events or matters planned which would require Accountable Officer approval.

As you are aware I wrote to the Constitution, Europe, External Affairs and Culture Committee Convenor on 17 December, setting out the circumstances around this extended absence of Historic Environment Scotland’s Accountable Officer. That letter is now on record and published on the Parliament website: Historic Environment Scotland Accountable Officer | Scottish Parliament Website

The Historic Environment Scotland, Chief Executive and Accountable Officer (Katerina Brown) resumed her Accountable Officer duties on 20 October 2025.

The absence of an Accountable Officer at any national body is clearly a concern for Scottish Government. However the circumstances surrounding the absence of the Accountable Office for an extended period at Historic Environment Scotland were particularly challenging.

In my letter to the Constitution, Europe, External Affairs and Culture Committee Convenor on 17 December following publication of Audit Scotland’s Section 22 Report about Historic Environment Scotland, I set out in more detail the circumstances around the extended absence of the Accountable Officer.

Scottish Government officials continue to attend HES Board meetings and are working closely with the organisation to support the new Chair and the HES Board .

Historic Environment Scotland are also commissioning a review into their organisation and culture led by an experienced external investigator. I welcome the commissioning of this review and am confident that this will enable the organisation to respond fully and positively to the areas of concern in the Auditor General’s Section 22 report to Parliament .

Once that review is concluded, the Scottish Government will work with the HES Chair and Board to ensure all necessary actions are taken and lessons learned.

The Scottish Government did not receive any direct correspondence from Audit Scotland regarding the reported governance failures at Historic Environment Scotland.

Stephen Boyle, Auditor General for Scotland wrote on 27 October 2025 to the Public Audit Committee to inform them that he intended to publish a report under Section 22 of the Public Finance and Accountability (Scotland) Act 2000 on the 2024-25 audit of Historic Environment Scotland. The letter is published on the Parliament website: The 2024/25 audit of Historic Environment Scotland Section 22 report | Scottish Parliament Website

The Historic Environment Scotland Section 22 report from Audit Scotland was published alongside the Historic Environment Scotland Annual report 2024-2025 and laid before Parliament on 16 December 2025 at 09:30. The 2024/25 audit of Historic Environment Scotland | Audit Scotland

Further correspondence from Audit Scotland on the Section 22 report may have been received directly by Historic Environment Scotland.

The Scottish Government is committed to supporting the current and future skills needs of the economy, respecting that operational decisions such as course provision and equipment are a matter for individual colleges.

The Draft Budget 2026-27 invests over £2.4bn in post school education and skills. Scotland’s colleges will see a combined increase of £70m in resource and capital funding, equivalent to a 10% uplift on last year’s budget.

On 28 May 2025 the Chief Executive and Accountable Officer of Historic Environment Scotland informed the Scottish Government that her absence from work which had begun on 2 May 2025 would be greater than four weeks, and that she expected to be absent for a further period. In doing so she also confirmed that during this period there would be no major events or matters planned which would require Accountable Officer approval.

The Historic Environment Scotland, Chief Executive and Accountable Officer (Katerina Brown) did resume her Accountable Officer duties on 20 October 2025.

As you are aware, regarding the continued absence of the Accountable Officer for five and a half months at Historic Environment Scotland, I wrote to the Constitution, Europe, External Affairs and Culture Committee Convenor on 17 December following publication of Audit Scotland’s Section 22 Report about Historic Environment Scotland, setting out the circumstances around this extended absence. That letter is now on record and published on the Parliament website. Historic Environment Scotland Accountable Officer | Scottish Parliament Website

I can assure you that during the five and a half month period that the Chief Executive and Accountable Officer was absent the Scottish Government continually monitored the situation and engaged with the then Chair and Board. Additionally at my request Sponsorship Officials attended and continue to attend all Historic Environment Scotland Board meetings.

On 28 May 2025 the Chief Executive and Accountable Officer of Historic Environment Scotland informed the Scottish Government that her absence from work which had begun on 2 May 2025 would be greater than four weeks, and that she expected to be absent for a further period. In doing so she also confirmed that during this period there would be no major events or matters planned which would require Accountable Officer approval.

Regarding the continued absence of the Accountable Officer at Historic Environment Scotland, I wrote to the Constitution, Europe, External Affairs and Culture Committee Convenor on 17 December following publication of Audit Scotland’s Section 22 Report about Historic Environment Scotland, setting out the circumstances around this extended absence of an Accountable Officer. That letter is now on record and published on the Parliament website. Historic Environment Scotland Accountable Officer | Scottish Parliament Website

As stated in my letter to CEEAC, the Historic Environment Scotland, Chief Executive and Accountable Officer (Katerina Brown) resumed her Accountable Officer duties on 20 October 2025.

The Scottish Government continually works with stakeholders to understand the impacts of the many factors affecting Scotland’s high streets, including Scottish and UK taxes.

That is why in the draft Budget, published on 13 January, we announced plans to reduce the non-domestic property rate that retailers will be liable for, delivering the lowest Basic Property Rate since 2018-19.

We are, however, taking this course of action without the full economic powers needed to fully address the issues facing Scotland’s economy, and have called on the UK Government to take action to reverse its damaging decision to increase employers’ national insurance contributions, and to remove barriers for the re-use and re-development of town centre buildings through a review of the rate of VAT for the refurbishment of existing buildings.

The Scottish Government is committed to supporting the current and future skills needs of the economy, respecting that operational decisions such as course provision are a matter for individual colleges.

The Draft Budget 2026-27 invests over £2.4bn in post school education and skills. Scotland’s colleges will see a combined increase of £70m in resource and capital funding, equivalent to a 10% uplift on last year’s budget.

I will continue to work closely and collaboratively with Colleges Scotland, learners, and the wider sector, to support skills development and ensure a successful and sustainable future for our colleges.