Chamber and committees

This is a matter for CalMac Ferries Limited, Scottish Ministers do not have a role to play and have not been involved in any discussions.

The Prudential Code for Capital Finance in Local Authorities is produced by CIPFA. The Prudential Code requires a local authority to ensure that the financing of capital expenditure is prudent, affordable and sustainable and refers specifically to the requirement to consider credit agreements and associated financing costs as part of capital investment decisions. CIPFA is an independent organisation and as such the Scottish Government has no authority to propose or decide the content of CIPFA's Codes of Practice.

Assessing the future needs of places, in collaboration with communities, is a core part of the local development plan process and infrastructure needs should be considered early in the process as part of an evidence based approach.

We continue to engage closely with COSLA and Heads of Planning Scotland to understand the pressures faced by the planning service, including skills shortages, and to promote a highly performing system.

Along with other key stakeholders including Partners in Planning we will develop a skills strategy which will identify the specialist skills required to address the requirements of National Planning Framework 4, and the wider skills required to ensure we have planners with the expertise to deliver on our ambitions for Scotland.

In 2022 we commissioned work on the pipeline of new planners coming into the system. The research report is available at Future Planners Project Report (rtpi.org.uk) . We are working with the Royal Town Planning Institute Scotland and Heads of Planning Scotland to implement the report’s recommendations, and will focus on this as we move forward with delivery of NPF4.

The forthcoming development planning guidance will set out the various stages in plan preparation.

The Scottish Government does not plan to develop a strategy to tackle pensioner poverty. We already work closely with partners, including through the Older People’s Strategic Forum on a range of issues related to age equality. This includes the Strategic Action Framework ‘A Fairer Scotland for Older People, in which Ensuring Financial Security is a priority area. In addition, the forthcoming Human Rights Bill will include provision for older people.

Our Cost of Living website contains dedicated information on the support available for older people, including benefits and travel.

The Medium-Term Financial Strategy (MTFS) (most recently published in 2021) ( The Scottish Government's Medium Term Financial Strategy - gov.scot (www.gov.scot) ) sets out the revenue finance models available to the Scottish Government. The mutual investment model (MIM) is considered alongside a range of financing approaches including capital grant, capital borrowing, financial transactions and other forms of finance when determining how to finance projects. The approaches are regularly reviewed to ensure the best value for money.

The Scottish Government continues to engage with the UK Government as part of the forthcoming Fiscal Framework Review. The scope and timings of the review are subject to agreement with the Chief Secretary to the Treasury.

The review must ensure the Scottish Government and Parliament has the necessary powers to manage the risks we face within our devolved responsibilities, and to support economic recovery.

The Medium-Term Financial Strategy (MTFS) (most recently published in 2021) ( The Scottish Government's Medium Term Financial Strategy - gov.scot (www.gov.scot) ) sets out the range of funding available to the Scottish Government to invest in infrastructure, including revenue finance models. As part of the National Infrastructure Mission commitment, the Scottish Futures Trust (SFT) were commissioned to examine new privately financed profit-sharing schemes. SFT assessed different funding models (such as evolved Private Finance Initiatives, financial transactions and MIM variations) against their ability to deliver additional investment, value for money, affordability, investor interest and financial risk. More information on the analysis performed by SFT can be found here: sftoptionsappraisalreportlowres.pdf (scottishfuturestrust.org.uk) .

The Scottish Futures Trust also supports the Scottish Government in considering the range of sources of finance and their relative merits for different types of infrastructure investment– a summary of which can be found in Appendix 5, here:

NPF4_Draft_3.QXP_Layout 1 (scottishfuturestrust.org.uk)

The Scottish Government annually update and publish information relating to Private Finance Initiative (PFI) and Non-Profit Distributing (NPD) contracts and their associated unitary charge payments. This information is collated from the relevant procuring public sector bodies including local authorities and published on the Scottish Government website at the following link www.gov.scot/npd/pfi

Although guided by its missions, which are set by Scottish Ministers, and the legislation within the Scottish National Investment Bank Act 2020, the Bank operates independently. So, any potential future investment roles or opportunities would be a matter for the Bank to decide.

Work is ongoing to develop our infrastructure improvement programme. As part of that improvement work we have been engaging across government and, at this stage, with the Scottish Futures Trust to understand some of the issues that have affected previous capital investment projects and how we can best take action to improve delivery, as part of our work to develop options for a national infrastructure company.

Local authorities determine their own programmes for capital investment and are required by legislation to comply with The Prudential Code for Capital Finance in Local Authorities, which was developed by the Chartered Institute of Public Finance and Accountancy (CIPFA). The Prudential Code requires local authorities to ensure that all capital investment decisions are prudent, affordable and sustainable.

The Scottish Government have no plans to propose the use of private finance for any new local authority led infrastructure projects. As a government however, we are committed to ensuring that existing private finance contractual obligations are delivered and that contracts are affordable. That is why we have asked the Scottish Futures Trust (SFT) to work with public bodies to realise contract management improvements including re-scoping services, sharing in insurance cost savings, and optimising the risk transfer in contracts. SFT have published several guidance notes in relation to operational contract management which are available from their website at the following link www.scottishfuturestrust.org.uk/operational-ppp