Chamber and committees

Following Stage 2, we will provide a revised Financial Memorandum for Stage 2 amendments that have been agreed to which will also note the value of costs incurred to date on the Bill.

The Scottish Government has provided support for employees affected by developments at Carpetright through our Partnership Action for Continuing Employment (PACE) initiative.In agreement with Carpetright's Talent Acquisition Manager, a PACE Introduction to Redundancy Support webinar took place on 7 August for all impacted staff across Scotland to inform them of the support on offer. In addition, information on PACE services has been issued to the impacted staff to support their self-referral to partnership services. Skills Development Scotland will also be undertaking promotion of PACE support to former Carpetright staff via social media activity.Through providing skills development and employability support, PACE aims to minimise the time individuals affected by redundancy are out of work.

The terms of Special Adviser contracts of employment are reserved to the UK Government. Those contracts include a requirement that severance payments are made to special advisers where their employment is terminated in the circumstances where a First Minister demits office, or on the dissolution of Parliament prior to a Scottish Parliamentary election. The value of severance payment due is dependent on an individual’s length of service and range from the equivalent of 3 months’ pay up to a maximum of 6 months’ pay.However, payment of severance is subject to agreement that should an individual be reappointed as a special adviser, they will repay any severance pay less the amount of salary they would have been paid had they been employed during the period between the termination of the previous contract and re-appointment on a fresh contract. Therefore the amount of severance to be repaid upon reappointment varies depending on the length of time between termination of employment and later reappointment. The following table sets out for each of the last 5 years to July 2024, the net cost of severance payments once the approximate level of repayments received are taken into account for those who were reappointed:

The Scottish Government has subsidised the temporary removal of ScotRail peak fares for twelve months in a move to encourage modal shift from private car to rail while making rail travel more affordable and accessible over the pilot period. The cost of the full year subsidy was approximately £40m.

The success of the pilot has been measured through analysis, which uses daily patronage data (from April 2022 to start of July 2024) covering the period before and nine months of the pilot.

This analysis shows that while there has been a limited increase in the number of passengers during the pilot, it did not achieve its aims of encouraging a significant modal shift from car to rail. In light of the financial challenges facing the Scottish Government and the level of additional and continuing subsidy that would be required to continue the pilot versus its contribution towards tackling climate change with modal shift from car and tackling child poverty which are key Scottish Government missions, the pilot will end on 27th September 2024.

The pilot primarily benefitted existing train passengers and those with medium to higher incomes and although passenger levels increased to a maximum of around 6.8%, it would require a 10% increase in passenger numbers for the policy to be self-financing. The pilot will have been welcome in saving many passengers hundreds and in some cases thousands of pounds during the cost of living crisis but this level of subsidy cannot continue in the current financial climate on that measure alone.

I am aware, however, that a significant minority of people cannot choose when they travel to and from work who did and would benefit from lower priced rail travel and who might find the return to peak fares challenging. I can therefore announce the introduction of a 12-month discount on all ScotRail season tickets and permanently amending the terms of flexipasses to allow for 12 single journeys for the price of 10, used within 60 days, equivalent to a 20% discount for those who travel less frequently.

For example, prior to the pilot someone travelling between Edinburgh and Glasgow would have paid £28.90 for an anytime return. They will now pay £31.40 for an anytime day return but with the 20% discount this reduces to £18.52 if they use an annual season ticket to travel at least 4 days per week or £21.25 if using a flexipass for a return journey. Weekly and monthly season tickets are also available with the 20% discount which offer savings over buying tickets on a daily basis.

Prior to the pilot, someone travelling between Barrhead and Glasgow would have paid £6.60. While this will increase to £7.20 for an anytime day return it reduces to £4.06 if they use an annual season ticket to travel at least 4 days per week. Someone using a flexipass on the same journey will pay £4.85 for a return journey.

Super off-peak tickets will also be reintroduced.

The final evaluation of the Pilot is available on the Transport Scotland website.

The Scottish Government would be open to consider future subsidy to remove peak fares should UK budget allocations to the Scottish Government improve in future years.

Making public transport easier for people to use is crucial in driving forward a greener, fairer Scotland, enhancing equality, growing the economy, and supporting communities.

With this in mind, I am pleased to announce the publication today of the Scottish Government’s updated strategy on smart, digital, integrated ticketing and payments.  https://www.transport.gov.scot/publication/smart-digital-integrated-ticketing-and-payments-delivery-strategy-2024/

This strategy builds on the enhancements progressed since its first iteration published in 2018, such as enabling universal smartcards to be used across operators, supporting the provision of contactless payment to be available on 98% of buses in Scotland, and delivering smart concessionary travel for young people and on our ferry services to Orkney and Shetland. Technological advancements since 2018 have opened a vast array of new opportunities to rethink and evolve how we can continue to encourage use of sustainable public transport, and address the change in travel patterns and public expectations witnessed in the years following the pandemic.

It complements the delivery of my wider transport priorities and provides a refreshed vision, To increase the use of sustainable public transport by providing smart and integrated ticketing, payment, and journey planning data enhancements, contributing to a healthier, fairer and more prosperous Scotland.

The strategy also aligns with the new National Smart Ticketing Advisory Board three year Work Programme, which is being published today as well, outlining the advice that will be provided to Ministers on the future of smart ticketing in Scotland. All of these actions seek to support the improved accessibility, availability and affordability of public transport.

Minutes from the Scottish Bracken Working Group meetings are available at the following link: Bracken: Scottish Working Group - gov.scot (www.gov.scot) .

A number of alternative methods of control are available to aid bracken management, which should be determined on a case by case basis.

UK Preliminary Best Practice Guidance for bracken management was published in June 2024 and can be viewed at the following link: Bracken | NatureScot .

The Scottish Government remains fully committed to improving Scotland’s transport and trade links to the Continent, which carries even more importance after the UK Government’s damaging exit from the EU.

I have personally engaged with parties interested in introducing new ferry services, and Transport Scotland officials continue to communicate regularly with potential operators and Scotland’s main ports.

I also met with Lord Davies of Gower, then Parliamentary Under Secretary of State for Transport, in London on 5 February regarding this issue. I subsequently received written confirmation from Lord Davies that the UK Government was not willing to financially support a new service from Rosyth, highlighting the risk of potential litigation should other operators consider such support to be subsidy.

Due to UK Subsidy Control restrictions, any service is required to operate on a commercial basis. I hope that prospective commercial operators are able to commit to operating a successful and profitable service, however this is ultimately a decision for those operators.

We will continue to engage with port operators and others to explore opportunities for new commercial services, so that Scottish exporters have more direct routes to markets on the Continent.

The specification of the review of the Highlands and Islands Air Discount Scheme has yet to be determined. The review will, however, include consultation with scheme members and other stakeholders.

Transport Scotland is not the procuring authority for new rolling stock for Scotrail therefore it would not be the party issuing procurement notices for rolling stock procurement.

The need for an Environmental Impact Assessment would be dependent upon the site and whether there is any material change of use with regards to existing permissions. Ultimately, that is a local planning matter and determining whether the operator requires further planning permission is for the relevant planning authority to consider.