Chamber and committees

Following the first Oversight Group meeting in June, David Strang, former chair of the Drug Death Taskforce, has accepted my offer to become Chair of the group, ensuring its independence from government. I will of course continue to attend as a member of the group. This will begin from the next meeting scheduled for 22 September 2022.

To ensure independence from government, a steering board of members has been nominated to co-ordinate the agenda for Oversight Group meetings.

The Scottish Government is aware that the Scottish Housing Regulator (SHR) publishes an engagement plan for every Registered Social Landlord which is publicly available on their website. Their engagement plan for Reidvale Housing Association covering the period up to 31 March 2023 states that they are engaging with the Association on its strategic options appraisal.

As an independent Regulator it is for the SHR to make decisions about how they regulate. Their Regulatory Framework sets out how they perform their functions and regulate social landlords.

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.

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.

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.

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.

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.

The Scottish Government has made a commitment in our National Strategy for Economic Transformation to “Build on the findings from the Business Purpose Commission Report, to inform how businesses can deliver positive impacts on prosperity, wellbeing – including tackling child poverty – and environmental sustainability. ”

The Business Purpose Commission for Scotland launched its report Now is the time for purpose: Putting purpose at the heart of Scottish business on 28 June 2022. The report is comprehensive, and makes recommendations for a range of stakeholders across business, governments, and tertiary education and training organisations. We are considering the recommendations carefully, with particular focus on the two recommendations for Scottish Government to lead. This requires significant cross- government engagement and we look forward to sharing our response when complete.

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.