Chamber and committees

The Scottish Government launched the Transition Training Fund (TTF), on1 February, to support individuals and help the sector retain talent. The £12 million training fund, currently in its eight month will be available over a three year period.

In Scotland’s Economic Strategy we said we would address long-standing barriers in the labour market so that everyone has the opportunity to fulfil their potential. Fairer working practices can help utilise more effectively the skills and talents of groups who do not always get the best deal in the labour market and contribute to inclusive economic growth. This is the context in which we are scoping arrangements for the fund, which will be announced in due course.

The Scottish Government recognises that switching energy tariff or supplier can provide significant savings for consumers. However, the Competition and Markets Authority’s recent energy market investigation has highlighted that consumers in Scotland are less likely to be active in the market than when compared with consumers in England and Wales.

In response to this, the Scottish Government is examining collective switching models and group buying of energy to inform our approach in this area. We will evaluate existing models and identify key elements of successful methods and interventions that may be helpful in promoting Scottish consumer engagement in the energy market. As part of this work, we are engaging with a number of organisations that have operated recent collective switches in Scotland to understand their experiences and those of their consumers - both positive and negative - which will grow our evidence base as we consider our next steps and inform the development of policy within our draft Energy Strategy for Scotland.

In support of this work, we will also be undertaking a survey to establish the extent of switching and the barriers that consumers face, and use the results to identify the characteristics of different types of switchers, such as those on low incomes, with the aim of developing targeted policy interventions.

Our aim is to better understand within the Scottish context, the potential to increase consumer engagement in the energy market through the promotion of collective switching schemes and the potential for innovative models to reach the most vulnerable and disengaged Scottish energy consumers, in line with the Scottish Government’s call for a fair deal for all Scottish energy consumers.

The First Minister announced on 10 August measures to support and stimulate the economy in the wake of the EU referendum and highlighted that capital spending on projects to support and create employment would be accelerated, with an additional £100 million of funding in this financial year. In launching the Programme for Government, the First Minister confirmed that one of the sixteen projects that formed the £100 million capital investment package would be £10 million to support capital investment in local economic development projects.

The detail of the specific projects will be announced shortly and will be focused in areas where there has been economic challenge and company closure and will help increase economic resilience, supporting future growth and helping to create and retain jobs in local communities. We are currently working with local authorities to confirm the projects that are to be supported through these capital resources which need to be committed this financial year.

There has been no formal application process as the resources have been focused on accelerating existing priorities. The projects that are being considered are those that have been identified as priorities through our joint work with local authorities. They will support employment and business activity and will develop infrastructure assets and improvements which will make a significant contribution to the future prosperity in these communities. Key assessment criteria have been growth, including an assessment of the impact on short-term economic growth and business activity and inclusion, including the impact on geography and fit with wider Scottish Government priorities.

We are working with local government to determine how best to utilise the £10m funding for domestic energy efficiency and will provide further information in due course.

As stated in A Plan for Scotland: The Scottish Government’s Programme for Government 2016-17, a key action for this year will be developing the business case for a new manufacturing centre of excellence and skills academy. We are currently developing this business plan with a range of partners, and this work includes building an evidence base and working closely with the private sector on the detail of the proposition. Clearly, options for the centre's location, budget and staffing will be considered as key issues as part of this business case process.

We intend to publish a detailed business plan in Spring 2017.

The Scottish Government has published a full list of all approved operations, including details of match funding arrangements, on its website at:

http://www.gov.scot/Topics/Business-Industry/support/17404/esifoperations.

The £650 million refers to the total expenditure, of which £290 million is European Structural Funds. The remaining £360 million is being provided by project partners.

This list is a requirement of EU Regulations, and it will be updated as the Scottish Government makes further approvals.

It is estimated that the capital stimulus package funding of £100 million will support around 800 full time equivalent Scottish jobs, with just over half of those in construction.

The impact on economic growth in 2016-17 will not be known until the projects being funded have been taken forward. However, it is anticipated that this investment will deliver a vital boost to the economy, helping retain skills and activity in key sectors as well as enhancing Scotland's asset base.

The Scottish Government allocates funding to Skills Development Scotland (SDS) on an annual basis for delivery of training programmes and other activities, including the Employability Fund (EF). In the Budget Bill 2016-17, published on 29 January 2016, SDS was allocated Grant in Aid of £176.1 million which will be used to meet its commitments in 2016-17 including the delivery of 11,650 Employability Fund training places plus £6 million in-year transfers from the Scottish Funding Council to Skills Development Scotland to support delivery of the college ring-fenced places within the sector.

Since its launch in 2013-14, EF has supported 52,030 training starts as shown below:

2013-14 = 17,370

2014-15 = 17,339

2015-16 = 17,321