Chamber and committees

I refer the member to the answer to question S6W-24444 on 22 January 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 .

The Scottish Government is considering using the proposals for a Heat In Buildings Bill (as set out in consultation document “Delivering Net Zero for Scotland’s Buildings: Changing the way we heat our homes and buildings”, published November 2023) to make two potential changes to the Heat Networks (Scotland) Act 2021. Both potential changes arise from the need to harmonise our heat networks legislation with the recently-passed UK Energy Act 2023. These potential amendments are:

• To align our 2021 Act’s definitions of ‘supplier’ and ‘operator’ with those of the UK Energy Act 2023. Given that Ofgem will be acting as both the UK authorisation authority and Scottish licensing authority, it will be beneficial to the regulator and industry alike to have aligned definitions. This will foster a more streamlined application and determination process.
• To modify Part 7 of the 2021 Act, in order to take into account the ‘step-in’ and ‘supplier of last resort’ provisions of the UK Energy Act 2023. It may be necessary to remove similar Scottish provisions in this area (‘register of key network assets’ and a ‘transfer scheme’) in order to avoid duplication and potential confusion for market participants.

During the consultation process, additional potential amendments may be identified.

The Scottish Government recognises that maximizing the use of recoverable or waste heat, which at present goes unused, remains a priority.

For heat network developers, there are clear incentives to connect to this heat as it can be an economical source of heat, where buildings or the processes operating in them can provide surplus heat to our homes and buildings, potentially lowering the cost of heat for heat network customers and providing an income for heat source providers.

We are seeking evidence in our Heat in Buildings Bill consultation about whether requirements should be placed on owners of unused heat. Following the closure of the consultation we will analyse responses to questions on recoverable or waste heat and use this to guide our development of recoverable and waste heat policy.

The Heat in Buildings Bill consultation proposes that local authorities and the Scottish Ministers may be provided with powers to require buildings within a heat network zone to end their use of polluting heating systems (by a certain date, and with a minimum notice period). This proposal does not require a building to connect to a heat network, but connecting to a heat network would be a way to move to a clean heating system. During the consultation period - receiving feedback from stakeholders - and further development of these proposals, we expect that there may be related powers that may be necessary to ensure that these powers to require buildings within a heat network zone to end their use of polluting heating systems can be safely and robustly implemented. For example, Scottish Government may need to produce guidance relating to the information that would need to be provided to a local authority or the process by which buildings could be required to end their use of polluting heating systems. I refer the member to the answer to question S6W-24589 on 1 February 2024 which also provides our current position on the type of building that may be affected by these proposals.

The consultation also proposes that local authorities or the Scottish Ministers may be provided with powers to require developers to connect new buildings within Heat Network Zones to a heat network. The Building (Scotland) Amendment Regulations, 2023 have already introduced a new build heat standard which means that no new buildings constructed under a building warrant applied for from 1 April 2024 will be built with polluting (or direct emissions heating systems), like gas and oil boilers.

The consultation is also seeking views on a proposal to potentially require buildings with unused heat to provide this to a local heat network (where that would be cost-effective) – such a power could sit with the Scottish Government or local authorities, subject to certain guidance and safeguards.

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 .

The Heat in Buildings Bill consultation proposes that local authorities and the Scottish Ministers may be provided with powers to require buildings within a Heat Network Zone to end their use of polluting heating systems (by a certain date and with a minimum notice period).

We do not specify any sub-sets of buildings which may be affected by these proposals, in order to gain thorough feedback in response to our consultation. Thereafter we will analyse responses to help determine whether to take these proposals forward, including whether they may be restricted to particular types of buildings.

In March 2022 we published The Heat Networks Delivery Plan, which sets out a building hierarchy table for connection to a heat network and can also support our policy development in this area. It sets out that within a heat network zone it will be important to encourage and prioritise the connection of key anchor buildings, which can enable the efficient operation of a heat network, helping to reduce customer costs and enabling the extension of the network over time to other nearby buildings.

District heat network development: Building Connection Hierarchy*

The UK Government Apprenticeship Levy is a reserved tax on employers of which Scotland receives a proportionate share of tax revenues via the block grant as per the Fiscal Framework agreement with UK Treasury. Scottish Government do not receive a specific allocation of Apprenticeship Levy revenue.

While recognising the challenging budgetary pressures, Scottish Government have been clear that we will continue to invest significant funding in education, training and skills – including apprenticeships - to meet the needs of employers, the workforce, young people and Scotland’s economy. The overwhelming majority of funding, including investment in our apprenticeship programmes, is available to employers regardless of their size or whether they pay the Levy.

It is too early to determine the impact of the withdrawal of Flexible Workforce Development Fund on college financing. However, the Scottish Government and the Scottish Funding Council will continue to support colleges to understand and minimise any negative impacts on short, medium and long-term financial sustainability.

We remain committed to supporting an education and skills system that responds to the needs of Scotland’s employers/learners and we would encourage employers to continue to work with colleges, building on the relationships they now have. SFC will work with the sector to consider how we make best use of the resources available to enable colleges to maximise opportunities for learners and be responsive to employers’ needs, building on the strong foundations they have established over recent years.

The decision to halt the Flexible Workforce Development Fund was not taken lightly but in an extremely challenging budget environment. It is too early to tell the impact of this decision on the overall job-related training across Scotland. It is hoped that many of the employers who have benefitted from FWDF since 2017 will continue to recognise the value of upskilling their workforce to support economic growth.

Employers have a key role to play in workforce development. We will continue to encourage employers to build on the strong partnerships they have developed and work with their local colleges and universities to ensure training offers align to labour market needs.

I refer the member to the answer to question S6W-24498 on 23 January 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 .

The announcement in the Scottish Budget 2024-25 signalled the Scottish Government’s intent to explore the reintroduction of a Public Health Supplement for large retailers in advance of the next Budget. The exploratory work will be carried out in compliance with the Framework for Tax, including engagement with all relevant stakeholders.

The Scottish Government is committed to keeping all Non-Domestic Rates (NDR) policy reforms under review to ensure that the NDR system delivers the most competitive environment to do business whilst also supporting our communities. The Basic Property Rate will be frozen in 2024-25 for the second year in a row, maintaining the lowest such rate in the UK for the sixth year in a row. Over 95% of properties in Scotland - those with a rateable value up to and including £100,000 - will continue to liable for a lower non-domestic rate than anywhere else in the UK in 2024-25.