Chamber and committees

I refer the member to the answer to question S5W-07951 on 20 April 2022. All answers to written parliamentary questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers.

(a) The National Strategy for Economic Transformation puts a clear focus on growing new companies. Scotland aims to be a nation of entrepreneurs and innovators, with resilient supply chains and competitive advantages in the new industries generated by technological change and scientific advances. This is the epitome of medical research companies in Scotland.

(b) Life science company growth is being supported by a breadth of policies across government to support growth investment, skills development, R&D and innovation as well as business planning and support. The Scottish Government recognises that the commercialisation of university research is an important generator of new and innovative businesses, products and services, for societal and economic good. Scottish Enterprise has long been a key contributor to investment in the industry and participated in half of the life science start-up funding here. In addition, Scottish Government set up the Scottish Growth Scheme in 2019 to provide loans and equity investment to start-ups and high growth businesses, including those in life sciences. During 2022-23 we expect the Growth Scheme to invest approximately £28m in total to start-ups and high growth businesses.

The independent Barclay Review of Non-Domestic Rates acknowledged that exemption - where types of property are exempt from rating – is not the best way to affect non-domestic rates liabilities. The review highlighted that where properties are not valued and do not appear on the valuation roll the financial benefit to those concerned is unknown, which decreases transparency and has the potential to create unfairness for other ratepayers. Furthermore, exemptions are based on the property characteristics of lands and heritages, rather than occupiers. As such, any exemption for the property types that ALEOs operate would require to apply across the tax base, to all similar lands and heritages.

The independent Barclay Review recommended that charity relief be ended for ALEOs and the existing relief for ALEOs removed. The Scottish Government only accepted this recommendation in part, and on 28 November 2017 it was announced that properties being run by council ALEOs in receipt of relief, charitable or sports club, on that date would be able to retain that relief in full. However, to address the concerns of the continuing expansion of the ALEO approach, the cost of further relief to ALEOs would be offset to councils to mitigate against future ALEO expansion.

ALEOs are still able to claim relief, and Local Authorities may award the relief included within their baseline amount as they see fit. However, if the total amount awarded by the Council exceeds the established baseline, its Local Government settlement is adjusted by an offsetting amount.

Charities are a major funder of medical research and development in Scotland, with investment estimated to be worth £122m in 2018 (Fraser of Allander report 2022). Scotland is a global centre of excellence for clinical research and there are a number of organisations in Scotland supporting those charities and their researchers.

The Association of Medical Research Charities works to maximise the potential for research and innovation in the NHS to ensure the investment from medical research charities has the greatest impact for patients. Medical Research Scotland supports individuals through the award of doctoral studentships and through other training initiatives to companies. Scottish Health Innovation Ltd also support clinical research and work closely with NHS Research Scotland, in partnership of Scottish NHS Boards and the Chief Scientist Office (CSO), to innovate and commercialise products and services. The Scottish Funding Council offer a number of funding programmes, which are administered by Interface, to offset the cost for collaborations to support innovation and research.

To further support research and development the Programme for Government has committed £100m to R&D over the next 5 years.

The powers required to legislate in respect of company acquisition and ownership are reserved to the UK Parliament and, as such, the Scottish Government does not have the power to take action in this area. In addition recent legislative change in the UK via the National Security and Investment Act enables an increased screening of acquisitions on grounds, for example, of national security. This reflects similar change in EU legislation.

These legislative mechanisms notwithstanding, company acquisition remains a commercial decision to be undertaken by two private entities. The Scottish Government and Enterprise Agencies therefore aim to work with businesses in Scotland, domestic and overseas owned, to ensure Scottish operations are not only secured here but opportunities for growth are pursued.

Scottish Enterprise research suggests acquisition can be an important route for companies with growth potential to achieve their ambitions; either Scottish companies who acquire other businesses or Scottish companies acquired by businesses from other parts of the UK and internationally. This is not unique to Scotland and is a feature of similar economies.

In addition both our Inward Investment and Global Capital Investment Plans place maximum emphasis in supporting good quality investment into Scotland aligning with our values as a nation and delivering our net zero economy supported by good green jobs. We will therefore continue to work closely with those Scottish and overseas-owned businesses and organisations with whom those values most closely align.

The powers required to legislate in respect of company acquisition and ownership are reserved to the UK Parliament and, as such, the Scottish Government does not have the power to take action in this area. In addition recent legislative change in the UK via the National Security and Investment Act enables an increased screening of acquisitions in certain sectors on grounds, for example, of national security. This reflects similar change in EU legislation.

The Scottish Government and Enterprise Agencies therefore aim to work with businesses in Scotland, domestic and overseas owned, to ensure Scottish operations are not only secured here but opportunities for growth are pursued. Scotland has a highly supportive eco-system for early stage and high growth businesses with potential to scale. In a UK context Scotland is recognised by the Scale Up Institute as having a particularly supportive business eco-system for ambitious Scottish companies, with our Enterprise Agencies at the centre of a network based upon collaboration between public, private, third sector organisations and academic partners.

In support of this approach both our Inward Investment and Global Capital Investment Plans place maximum emphasis on securing good quality investment into Scotland aligning with our values as a nation and delivering our net zero economy supported by good green jobs. We will therefore continue to work closely with those Scottish and overseas-owned businesses and organisations with whom those values most closely align.

Listed building consent applications are made to and dealt with by the relevant local planning authority, unless a specific direction is issued for the decision to be made directly by Ministers. In order to add a formal requirement for any specific supporting evidence for listed building consent applications supplied by any of the institutions the member mentions, legislative change would be required. The Scottish Government has no plans for any such legislative change at present, and welcomes any suggestions from our local planning authorities to improve our processes, or any advice from the member of the specific benefits this would bring.

In recognition of the scale of the existing shock of the pandemic and of the need to consider existing models of funding, governance, collaboration and delivery, the Deputy First Minister and the then Minister for Further Education, Higher Education and Science commissioned the Scottish Funding Council (SFC) to undertake their Review of Coherent Provision and Sustainability on 3 June 2020.

The Cumberford-Little report was highlighted in the commissioning letter from Ministers as a key element of the evidence base to be drawn on in the SFC review.

Many of the recommendations first made in the Cumberford-Little report are reflected in the final recommendations of the SFC Review, published in June 2021, including the recommendation for government to set out a compelling narrative and purpose for the sector and the need for a transparent and accessible performance regime directly related to purpose.

The Scottish Government published its response to the SFC review on 26 October 2021, broadly accepting and agreeing with the recommendations. The response acknowledges the importance of the Cumberford-Little report in shaping those recommendations.

Work is underway to implement the recommendations in the SFC review both within Government and within the SFC. In addition, the recently published National Strategy for Economic Transformation with its clear focus on skills recognises the central role Scotland’s colleges have in supporting business growth and economic recovery. The delivery of the actions described in NSET will further support the ambitions and recommendations as envisaged in the Cumberford-Little report.

The Scottish Government through Transport Scotland provide annual funding to Energy Saving Trust (EST) to deliver the Switched-on Taxi Loan scheme on behalf of Scottish Ministers.

a) To date the Switched-on Taxi Loan scheme has received 920 applications with a value of £37,822,348.

b) To date the Switched-on Taxi Loan scheme has offered 662 loans worth £22,859,952 to taxi owners and operators who have passed the credit, affordability and eligibility checks. Owners/operators who are unsuccessful are given the opportunity to appeal the decision directly with EST.

c) To date Switched-on Taxi Loan scheme has paid 574 applications to the value of £22,859,952. The remaining 88 applicants are finalising documentation or awaiting confirmed delivery dates for their new vehicles.