Chamber and committees

Forecasts for the 2023-2024 Budget were produced by the Scottish Fiscal Commission (SFC), and published on 15 December 2022. The change to the rateable value threshold for Fresh Start relief from £95,000 to £100,000 was judged by the SFC to be below the materiality threshold, and was not costed separately. Fresh Start relief overall is forecast by the SFC to cost £5 million in 2023-24.

Consistent with Scotland’s Framework for Tax we are consulting and engaging to help inform the development of the Scottish Aggregates Levy Bill.

This process began with a public consultation conducted last autumn, complemented by engagement with stakeholders. Taking account of feedback, it was concluded that more work was needed to ensure that decisions on Bill provisions are based on optimal evidence.

In January 2023, the decision was taken to establish an advisory group to assist this process. The group is designed with a broad mix of expertise and perspectives and is chaired by a senior Scottish Government official.

The group has already met twice and expects to hold its next meeting on 19 April. Through constructive and informed discussions, it is providing valuable insights to help refine policy positions and, in turn, Bill provisions. Summaries of its work will be published on the Scottish Government website in due course.

The Scottish Government appreciates the contribution of all members of the group, which will likely have a further role to play as the Bill progresses.

The independent Barclay Review of non-domestic rates reported in 2017 and made 30 recommendations, the majority of which were accepted by the Scottish Government in the implementation plan published in December 2017. All of the agreed recommendations of the Review have been implemented, including those which came into effect on 1 April 2023 such as the move to revaluations with a one-year tone date, the introduction of a new two-stage appeals process, and powers for councils to tackle rates avoidance.

Scottish Ministers have no plans to undertake a formal review of the trunk road network on Skye. The statutory duty to manage, maintain and improve the trunk road network is set out in the Roads (Scotland) Act 1984 and places an obligation on Ministers to keep the network under continual review.

In the United Kingdom, trunk roads were first defined in the Trunk Roads Act 1936. There have been two national reviews of the Scottish road network since the Act was introduced. The first was in 1946 and the second in 1994/95. The latter was prompted by the reorganisation of local government in Scotland.

A comprehensive review of the trunk road network on Skye would only be required in response to matters of national significance. We therefore currently have no plans to undertake a formal review of the trunk road network on Skye.

The second Strategic Transport Projects Review (STPR2), published on 8 December 2022, will inform the Scottish Government’s investment programme over the next 20 years (2022 to 2042). STPR2 has been undertaken in line with the Sustainable Investment Hierarchy, which aims to reduce the need to travel unsustainably and prioritises making best use of and enhancing existing infrastructure, before investing in new capacity.

The STPR2 recommendations include progressing safety improvements across the trunk road and motorway network (recommendation no. 30) with a primary but not exclusive focus on rural sections where accident rates and severities are typically higher. Measures are likely to include one or a combination of junction improvements, carriageway widening, route realignment and provision of overtaking opportunities. At this stage, potential example locations forming part of this recommendation include the A87 Invergarry to Uig with the location and type of improvements on specific routes requiring further detailed investigation.

In addition, climate change adaptation and resilience of the trunk road and motorway network forms STPR2 recommendation 31 and sea wall improvements, strengthening or replacement is a possible intervention in relation to the A87. Furthermore, recommendation 32 is focused on continued investment in the maintenance of a safe, reliable and efficient trunk road and motorway network. It should be noted that the STPR2 recommendations are not funded and will be subject to prioritisation that takes into consideration the fiscal context and availability of funding.

There has been no call on the Lochaber guarantee and therefore no public expenditure has been incurred. The Scottish Government securities are valued at more than the outstanding amount Guaranteed.

The Scottish Government has no outstanding liabilities in respect of Liberty Steel Dalzell and has engaged with Audit Scotland in relation to this matter.

The Scottish Government has engagement with Audit Scotland in relation to the Lochaber Guarantee and the year end accounts. The outcome of the most recent Consolidated accounts for the 2021-2022 financial year has been published in full on the Scottish Government’s website and the Auditor General has publicly commented on the findings in relation to Lochaber in December 2022 which can be accessed at this link https://www.audit-scotland.gov.uk/publications/the-202122-audit-of-the-scottish-government-consolidated-accounts .

The Auditor General has stated at page 12 of the 2021-2022 Audit that:

“I have concluded for 2021-22, the Scottish Government’s approach to setting the level of provision against the potential exposure through the guarantee is reasonable”.

The Liberty Steel Dalzell site had been mothballed prior to acquisition by GFG Alliance. The Scottish Government took action to ensure the security of high skilled, high quality jobs in our steel industry and today there are 133 people employed at Liberty Steel as a result of the Scottish Government’s intervention.

Regular engagement takes place between the Scottish Government and GFG Alliance at both official and ministerial level. Officials hold quarterly meetings to monitor performance in respect of the Scottish Government guarantee and maintain frequent engagement at local and group level on business operations. Officials are further supported in this activity by external commercial experts. The Scottish Government has a suite of securities in relation to the assets at Lochaber that are valued at more than the outstanding amount guaranteed.

Liberty Steel Dalzell is currently meeting ongoing interest payments on the outstanding loan, and Scottish Enterprise continues to work closely with the Company and its parent to secure full repayment as soon as possible. This is, however, a complex situation with multiple commercially sensitive dependencies.