Chamber and committees

Scottish Canals, as with all public bodies, is operating in an unprecedented challenging environment for public funds. Despite this, the Organisation has benefitted from significant increases in both its resource and capital Grant in Aid budget allocations in the last few years. Since 2019, the Scottish Government has increased the Organisation’s capital grant allocation by 87%.

In the last 2 years, and as a consequence of the significant increases in its capital budgets, Scottish Canals has managed to reduce its backlog of works by 20%. This has been achieved alongside significant Scottish Government support for unplanned events such as the Union Canal breach at Muiravonside in 2020. This highlights the importance of the Scottish Government’s support for Scottish Canals.

Like all Non-Departmental Public Bodies, Scottish Canals are required to seek approval from the Scottish Government for funding proposals above agreed threshholds. This ensures that larger projects are both affordable and in the best interests of wider public funds spend.

Proposals relating to Stockingfield Bridge will be subject to this process and will require Scottish Government approval before any undertaking can be made. I have yet to receive such a proposal from Scottish Canals but will of course give any such proposal full consideration.

We are committed to become a world leading, innovation nation, which will help us grow our economy and create sustainable, green jobs. As the recent figures from the UK Innovation Survey show, there is still work to be done.

That is why this year we will publish new innovation strategy which will ensure that our businesses, people and institutions are ready to meet the global economic challenges and opportunities we face over the next 10 years.

The Strategy will build on the support already available to businesses through our Enterprise Agencies, who since 2017 have distributed around £600m directly to businesses to build their capacity and capability to innovate, and initiatives such as the Digital Development Grant, which since September 2020 has invested almost £50m to over 5,600 SMEs to help them utilise digital technologies and enhance workforce skills.

Since 2007 Scotland’s business R&D expenditure has doubled, whereas the comparable figure for the UK as a whole was only 29% growth over the same period.

We recently commissioned The Scottish Council for Development and Industry to undertake research on the specific barriers to innovation faced by Scottish businesses. The findings from the report, together with our engagement with industry and key stakeholders, will inform a reformed package of support within the Strategy to ensure our businesses realise their innovative potential.

It is for Glasgow City Council as the statutory housing and planning authority to set out local housing requirements. The Glasgow Local Housing Strategy 2017 sets a Housing Supply Target of 15,000 new homes over five years, including 7,500 new affordable homes. Scottish Government published new housebuilding statistics, based on private-led completions data provided by Glasgow City Council along with social sector housing association new build completions data from the Affordable Housing Supply Programme, and these show a total of 4,923 all-sector completions over the four year period 2017-18 to 2020-21, with more than half of these being social sector housing association homes.

The Covid-19 pandemic and lockdown significantly impacted the construction sector across Scotland with associated delays to delivery of homes.

Like all Non-Departmental Public Bodies, Scottish Canals has to comply with the requirements of the HM Treasury Consolidated Budgeting Guidance Framework which does not allow for underspends to be carried over financial years.

Scottish Canals is allocated a Grant in Aid budget for the year based on expenditure forecasted by the Organisation and balanced by the income it expects to generate. Any operating surplus that the Organisation generates should be used to reduce the Grant in Aid requirement.

Scottish Canals has benefitted from significant increases in Grant in Aid awards in recent years. Since 2019, the Organisation’s capital grant from the Scottish Government has increased by 87% and it has received an annual uplift in resource funding. In addition, during the Covid-19 pandemic, Scottish Canals benefitted from additional funding of £1.7m to meet a reduction in its revenues.

In the lead-up to Scottish Canals’ formal recognition as a Non-Departmental Public Body (NDPB) in April 2020 and continuing since then, the Scottish Government has sought to provide as much assistance as possible to assist the Organisation in familiarising itself with the financial reporting processes and accountancy practices that all NDPBs have to follow. In addition to providing advice on a number of related areas, Transport Scotland officials facilitated meetings with the Office for National Statistics, Audit Scotland and Scottish Government finance colleagues to assist in this process.

Support was mainly provided around how NDPB status would impact on Scottish Canals preparing its annual accounts, the authority delegated to its Accountable Officer, the change in the Organisation’s ability to carry across reserves from one year to the next and its investment strategy. Officials also highlighted the need for Scottish Canals to familiarise itself with the requirements of the Scottish Public Finance Manual, the Government Financial Reporting Manual (FReM) and the HM Treasury Consolidated Budgeting guidance.

The National Mission Oversight Group is supported by many areas of expertise including; academics, lived and living experience representatives, international expertise, clinicians and third sector organisations

Three members of the group are specifically appointed as lived and living experience representatives, but we should not presume that other members of the Oversight Group do not have their own lived and living experience alongside their professional expertise and experience they are bringing to the group.

The Group will link in to lived and living experience networks such as the National Collaborative to ensure that the perspective and experiences of living and lived experience are embedded in the work of the Group.

The National Mission Oversight Group met for the first time on 30 June 2022. The next meeting is scheduled for 22 September 2022. The Group will meet every three months and dates of meetings will be agreed in advance for the following year. The National Mission Steering Group will advise accordingly.

While employment law remains reserved to the UK Government, we will use our Fair Work policy to promote fairer work practices across the labour market in Scotland, including within the renewable energy sector.

We have concluded a public consultation on the action needed for Scotland to become a leading Fair Work nation by 2025. We will publish a refreshed Fair Work Action Plan this year, incorporating the views from our public consultation, and focusing on minority ethnic and disabled people’s employment and the gender pay gap.

Fair Work is a key driver for achieving sustainable and inclusive economic growth and a wellbeing economy. Through our flagship Fair Work First policy we are using the Scottish Government’s financial powers to drive fair work practices and achieve our ambition for Scotland to be a leading Fair Work Nation by 2025.

Through the landmark Bute House Agreement, we will strengthen Fair Work conditionality. We will introduce a requirement on public sector grants recipients to pay at least the real Living Wage to all employees and to provide appropriate channels for effective workers’ voice, such as trade union recognition, subject to limits on devolved competence.

In the National Strategy for Economic Transformation we have also committed to work with employers and trade unions in sectors where low pay and precarious work can be most prevalent to deliver sectoral Fair Work agreements, that deliver payment of the real living wage, better security of work, and wider "Fair Work First" standards.

Trade unions are key partners in delivering our economic and social aspirations. We will continue to promote strong trade unions and collective bargaining arrangements in all sectors, including the renewable energy sector. We have made a clear commitment to promote collective bargaining through the inclusion of an employee voice indicator, measured by collective bargaining coverage, within the National Performance Framework.

We also work closely with Scottish Renewables, the trade body for Scotland’s renewable energy industry.

Scottish Renewables played an active role in the development of the Climate Emergency Skills Action Plan (CESAP) which explores issues such as skills development and staff retention in many industries including Energy. Through CESAP’s Implementation Steering Group we engage with both employers and their workforce as they move through the just transition to net zero. We will continue to engage with partners to deliver the Climate Emergency Skills Action Plan (CESAP) and will move forward with improvements to the Green Jobs Workforce Academy.