Chamber and committees

In an extremely challenging financial climate, and following a worst case scenario UK Autumn Statement in which UK Ministers prioritised tax cuts over public spending, we have had to take difficult decisions in setting this budget. The amount Scotland has available to spend is still largely driven by the block grant, which is derived from the UK Government's spending decisions and continuing constraint on public expenditure. The block grant has fallen by 1.2% in real terms since 2022-23 and, because of the UK Government's failure to inflation-proof capital budgets, our capital spending power is due to contract by almost 10% in real terms over 5 years.

Despite this, I am pleased that this Government has committed £4.7 billion in capital and resource in 2024-25 for activities that will have a positive impact on delivery of our climate change goals, and funding of almost £3.9 billion for transport across Scotland. The total budget for my portfolio increases by £47.7 million in 2024-25, which is a £27.9 million (0.6%) reduction in real terms using GDP deflators published in November 2023.

A significant proportion of the expenditure in my portfolio is legally and contractually committed, and I have ensured that those commitments are met in full in this budget as well as allocating funding to support critical maintenance and renewal expenditure to ensure that the people of Scotland have access to a safe and reliable transport system.

I have considered equalities and fairer Scotland duties and progress towards our statutory targets for climate change and child poverty in prioritising the budget available to me. I refer to the Equalities and Fairer Scotland Budget Statement and Carbon Assessment published alongside this budget.

Transport Scotland commissioned research on equitable options for car demand management, as referred to in S6W-15653 on 21 March 2023, S6W-16545 on 17 April 2023, and S6W-16547 on 17 April 2023.

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 .

This budget has required difficult choices due to the pressures on our public services and the lack of funding from the UK Government. We are facing the most challenging fiscal position since devolution. Mindful of our missions and priorities for Scotland, we have had to prioritise legal and contractual obligations in determining how to deploy this budget across Education and Skills priorities. Our children, young people, families and learners of all ages continue to be a key priority for this Government and we will continue to focus on our three central missions of equality, opportunity, and community.

We remain committed to supporting a high quality post-school education, research and skills system with over £2.4 billion investment. This will maintain Scotland’s reputation for world-leading research; provide opportunities for people to learn and develop their skills through Community Learning and Development (CLD), further and higher education and apprenticeships – honouring this government’s commitment to free tuition; and provide vital financial support to students to support them in completing their studies in the face of significant cost of living pressures. This is also why the Independent Review of CLD was announced on 5th December 2023 which will identify strengths in our current approach to CLD and highlight where improvements may be necessary.

The impact assessments which support the draft Budget 2024-25 can be found at this link: Scottish Budget - gov.scot (www.gov.scot) . In particular I’d draw your attention to the:

Education and Skills portfolio analysis section in Annex B and the Employability Case Study in Annex C of the Equality and Fairer Scotland statement.

I’d also highlight the following, also available at the link above:

Scottish Budget 2024 to 2024: high level carbon assessment

Scottish Budget 2024 to 2024: distributional analysis

Scottish Budget 2024 to 2024: Climate Change Assessment of the Budget

The Scottish Government has faced its most challenging budgetary settlement since devolution began – a settlement which has not been inflation-proofed, and which has subsequently required difficult decisions to be made, due to the pressures on our public services. Mindful of our missions and priorities for Scotland, we have had to prioritise legal and contractual obligations in determining how to deploy this budget across Education and Skills priorities. Our children, young people, families and learners of all ages continue to be a key priority for this Government and we will continue to focus on our three central missions of equality, opportunity, and community.

We remain committed to supporting a high quality post-school education, research and skills system with over £2.4 billion investment. This will maintain Scotland’s reputation for world-leading research; provide opportunities for people to learn and develop their skills through further and higher education and apprenticeships – honouring this government’s commitment to free tuition; and provide vital financial support to students to support them in completing their studies in the face of significant cost of living pressures.

The impact assessments which support the draft Budget 2024-25 can be found at this link: Scottish Budget - gov.scot (www.gov.scot) . In particular I’d draw your attention to the: Education and Skills portfolio analysis section in Annex B and the Employability Case Study in Annex C of the Equality and Fairer Scotland statement.

I’d also highlight the following, also available at the link above:

Scottish Budget 2024 to 2024: high level carbon assessment

Scottish Budget 2024 to 2024: distributional analysis

Scottish Budget 2024 to 2024: Climate Change Assessment of the Budget

The Network Support Grant, currently paid at 14.4 p/km, has been fully funded to the level of forecast demand in 2024-25. This is lower than budgeted in 2023-24 as demand has not been as high as anticipated this financial year. 2023-24 funding was too high, as patronage failed to recover as quickly as anticipated and services were cut, this means that the 2024-25 figure is a more accurate assessment. The Network Support Grant cannot be viewed in isolation and is part of the package of support for bus services. With the launch of the young person's free bus scheme in January 2022, we are helping to embed sustainable travel behaviours and support bus patronage to grow.

In an extremely challenging financial climate, and following a worst case scenario UK Autumn Statement in which UK Ministers prioritised tax cuts over public spending, we have had to take difficult decisions in setting this budget. The amount Scotland has available to spend is still largely driven by the block grant, which is derived from the UK Government's spending decisions and continuing constraint on public expenditure. The block grant has fallen by 1.2% in real terms since 2022-23 and, because of the UK Government's failure to inflation-proof capital budgets, our capital spending power is due to contract by almost 10% in real terms over 5 years.

Despite this, I am pleased that this Government has committed £4.7 billion in capital and resource in 2024-25 for activities that will have a positive impact on delivery of our climate change goals, and funding of almost £3.9 billion for transport across Scotland. The total budget for my portfolio increases by £47.7 million in 2024-25, which is a £27.9 million (0.6%) reduction in real terms using GDP deflators published in November 2023.

A significant proportion of the expenditure in my portfolio is legally and contractually committed, and I have ensured that those commitments are met in full in this budget as well as allocating funding to support critical maintenance and renewal expenditure to ensure that the people of Scotland have access to a safe and reliable transport system.

I have considered equalities and fairer Scotland duties and progress towards our statutory targets for climate change and child poverty in prioritising the budget available to me. I refer to the Equalities and Fairer Scotland Budget Statement and Carbon Assessment published alongside this budget.

In an extremely challenging financial climate, and following a worst case scenario UK Autumn Statement in which UK Ministers prioritised tax cuts over public spending, we have had to take difficult decisions in setting this budget. The amount Scotland has available to spend is still largely driven by the block grant, which is derived from the UK Government's spending decisions and continuing constraint on public expenditure. The block grant has fallen by 1.2% in real terms since 2022-23 and, because of the UK Government's failure to inflation-proof capital budgets, our capital spending power is due to contract by almost 10% in real terms over 5 years.

Despite this, I am pleased that this Government has committed £4.7 billion in capital and resource in 2024-25 for activities that will have a positive impact on delivery of our climate change goals, and funding of almost £3.9 billion for transport across Scotland. The total budget for my portfolio increases by £47.7 million in 2024-25, which is a £27.9 million (0.6%) reduction in real terms using GDP deflators published in November 2023.

A significant proportion of the expenditure in my portfolio is legally and contractually committed, and I have ensured that those commitments are met in full in this budget as well as allocating funding to support critical maintenance and renewal expenditure to ensure that the people of Scotland have access to a safe and reliable transport system.

I have considered equalities and fairer Scotland duties and progress towards our statutory targets for climate change and child poverty in prioritising the budget available to me. I refer to the Equalities and Fairer Scotland Budget Statement and Carbon Assessment published alongside this budget.

Acknowledging the importance of Demand Responsive Transport (DRT) as a transport solution, the Strategic Transport Planning Review (STPR2) recommends investment in DRT and Mobility as a Service (MaaS) as a means to provide improved public transport connectivity, which in turn forms part of the suite of policy interventions the Scottish Government is delivering in order to achieve its target of a 20% reduction in car kilometres travelled by 2030.

Digital technologies can improve access to real time journey information, including journey planning, scheduling, retailing and fulfilment methods across multiple modes of transport, including Digital Demand Responsive Transport (DDRT) in rural areas. By providing more reliable, personalised and dynamic information about public and shared transport services, MaaS and DDRT can reduce car dependency and use in the areas surrounding Scotland’s towns and cities.

The Scottish Government approach to the bus powers in the Transport (Scotland) Act 2019 ("the 2019 Act") is to empower local transport authorities with flexible tools to enable them to determine what is best to address any transport challenges according to their local needs. Local transport authorities are encouraged to consider the full powers available to them, including partnership work, franchising and local authority run services which sit alongside their ability to subsidise services.

Through the Community Bus Fund we have provided funding to support local transport authorities to explore the options for bus services set out in the 2019 Act and improve public transport in their areas. More details are provided in the answer to question to S6W-24668 on 2 February 2024. 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 .

In addition on 29 January, Transport Scotland officials published an overview of the bus powers available to local transport authorities, which provides an outline of all the powers available to them, and the opportunities they provide to improve local services. The document is available on the Transport Scotland website. Officials continue to engage with local transport authorities and other key stakeholders on the development of detailed guidance to help in their consideration of the franchising and partnership powers. This guidance will be available later this year.

In September 2023, the Scottish Government launched the Community Bus Fund which supports local transport authorities to explore the options in the Transport (Scotland) Act 2019 ("the 2019 Act") and improve public transport in their areas.

In 2023-2024 the Community Bus Fund made available £750,000 of resource funding for pathfinder projects, being developed by local authorities and regional transport partnerships. This funding was intended to support initial feasibility and preparatory work required for the 2019 Act, including franchising, partnerships and local authority run services. A further £5 million of capital funding in 2023-24 was allocated through the General Capital Grant to local authorities to improve bus services.

While the Scottish Government encourages local transport authorities to consider the full range of tools available to them under the 2019 Act, it is for them to determine what is best to address any transport challenges according to their local needs.