Chamber and committees

The Scottish Government understands the importance of bank branches to rural communities in Scotland and recognises that when a local branch closes it can be difficult for those living in rural and highland communities to access their next nearest branch.

The regulation of financial services is reserved to the UK Government. As such, the Scottish Government cannot intervene on banks’ commercial decisions to change their branch network and so we have not conducted data analysis on what we would consider a necessary number of bank branches in a particular area. We are, however, aware of ONS data showing a 41% decline in Scottish bank branches since 2012 and the data the FCA reported in Q4 2021 that only 32.7% of the Scottish rural population live within 5km of their nearest branch.

We proactively engage with the banking sector following decisions they have made to close Scottish branches. Through these engagements we have reminded banks of their social responsibility and re-iterated the importance of in-person banking services for communities across Scotland. We welcome industry commitments made through the Access to Cash working group to ensure alternative services are available to mitigate the impact of branch closures. This includes “Banking Framework 3” which allows customers of 30 major UK banks to use the Post Office for their basic banking needs. We note that, when including Post Offices with bank branches, 78.4% of Scotland’s rural population live within 5km of the nearest branch.

We will continue to engage with the banking sector and encourage them to do all they can to ensure that appropriate support is provided so that our rural communities are not disproportionately disadvantaged by branch closures.

We are actively exploring various measures to address emissions from business travel. As part of this process, we will consult on amending the air travel policy to mandate terrestrial or maritime modes of travel for official domestic trips within Scotland and the UK.

While the potential amendment to the policy is under consideration, we are also mindful of the practical implications it may entail. Transitioning to alternative modes of travel will require careful planning, and consideration of the logistical requirements for ministers and officials. Ensuring efficiency, accessibility, and the ability to fulfil official duties effectively will be essential during this process.

As we move forward, we will engage with relevant stakeholders, to ensure that any potential amendments to the air travel policy are well-informed and representative of the broader public interest.

The Scottish Government have not undertaken work to ascertain how many tour operators have removed guaranteed departure products as a result of disruption to CalMac operated ferry services.

Transport Scotland is considering future ferry fares policy as part of the Islands Connectivity Plan alongside our wider Fair Fares Review, which will report by the end of 2023 and recommend a package of measures which can be considered for implementation from 2024-25 and onwards to address the wider issues of cost and availability across all modes of public transport.

Meantime, we are continuing to take action on ferry fares with fares on the Northern Isles and Clyde & Hebrides ferry networks to remain frozen until the end of March 2024.

Any introduction of new RET measures on lifeline ferry services in Scotland would now need to comply with the requirements of the Subsidy Control Act 2022 and there have been extensive discussions on the Subsidy Control Act 2022 but no separate specific discussions on RET with the UK Government.

Banking Hubs are a welcome industry initiative from UK Finance’s Cash Action Group. In October 2022 the Minister for Community Wealth and Public Finance visited the pilot Banking Hub in Cambuslang to see the positive impact it has had on the local area. The Scottish Government shares the industry’s aspiration that Banking Hubs can play an important role in servicing the banking needs of communities that have suffered recent branch closures.

The decision to open a new Banking Hub lies with the banking sector and is overseen by LINK, the UK’s cash machine network. The Scottish Government cannot mandate where and when a new Banking Hub is opened. Each time a bank branch closes LINK independently reviews the impact this will have on the local community’s cash access. Depending on the outcome of this review LINK can then recommend a Banking Hub is installed, amongst other additional services.

Scottish Government officials met with LINK in April 2023 to understand the process they follow when assessing a community’s cash access needs to ensure it is sufficient for LINK to properly determine the appropriate support measures required post branch closure in Scotland.

To improve a community’s access to cash and banking services any individual, including members of the public, elected officials, and community groups, can request a review of their areas access to cash from LINK - even if that community has not faced a recent branch closure. This can result in the installation of additional services in the area, including shared Banking Hubs .

There was no discussion at the Heads of Devolved Governments Council regarding the UK’s Military presence in Scotland.

However, we have previously highlighted to the Scottish Affairs Committee decisions made by the UK Government on defence, which is a reserved matter, can have far reaching implications for Scottish communities who we support.

In the Scottish Government’s written evidence to the Committee, we proposed that the UK Government commits to meaningful engagement with the Scottish Government through clear structures that facilitate discussion leading to productive outcomes.

The Scottish Government continues to engage with National Records of Scotland and adoption agencies to understand further the challenges in accessing adoption records.

We have also commissioned research to explore the unmet needs of those people affected by historic forced adoption, and what services we could put in place to support them. Access to records forms a key part of that research which is due for publication in late autumn.

The Scottish Government received £19.4 million of capital Barnett consequentials at the UK Government’s Spring Statement in March as a result of the pothole fund announcement.

This funding announcement came after Stage 3 of the Budget Bill had passed and it was therefore too late for these amounts to be included in the 2023-24 Scottish Budget. At this stage the funding remains unallocated and, as with any funding received after the Budget is set, will be considered in the rounds as part of the upcoming Autumn Budget Revision.

Since the STEM bursary scheme (now known as the Teaching Bursary Scheme) was introduced in 2018, the number of bursaries awarded in each year is as follows:

Universal free school meals are available to all children in Primaries 1 to 5, and to all pupils in special schools, saving families £400 per eligible child per year.

We are committed to the expansion of free school meals, with the next phase of this being to children in Primary 6 & 7 whose families are in receipt of the Scottish Child Payment.

The following table shows the number of pupils at each school in the G74 and G75 postcode areas who were registered for universal free school meals at the time of our September 2022 Pupil Census.