Chamber and committees

The Scottish Government is facing significant pressures on its capital budget, with an expected real terms reduction from the UK Government to capital funding in Scotland of nearly 9% over five years. This equates to a cumulative loss of over £1.3 billion between 2023-24 and 2027-28 which will significantly affect the Scottish Government’s ability to maintain investment in transport infrastructure across Scotland.

However, the Scottish Government remains committed to the delivery of the proposed A90/A937 Laurencekirk Junction Improvement scheme as part of a package of additional investment alongside the Aberdeen City Region Deal.

The current estimated cost for the scheme is approximately £24.7m at 2019 prices (excluding non-recoverable VAT). This estimate will continue to be refined and updated as the scheme design becomes more developed.

The necessary on-going design preparatory work in 2024-25 is being funded through the Scottish Government’s Roads Improvement budget line.

Delivery of the scheme itself can only commence when the scheme is approved under the statutory procedures and thereafter a timetable for construction can be determined in line with available budgets.

Following the publication of draft Orders, Transport Scotland received four objections to the proposed A90/A937 Laurencekirk Junction Improvement scheme, including one from Aberdeenshire Council following its decision to close the existing Oatyhill Bridge to vehicular traffic.

Transport Scotland has been undertaking comprehensive engagement with all those who objected to the scheme proposals including that of Aberdeenshire Council and this work has successfully resulted in all objections now being removed.

Whilst resolution of the final objection represents a significant milestone for the scheme, it is necessary to publish supplementary Orders for a new bridge at Oatyhill. This is required to address the decision of Aberdeenshire Council to close the existing Oatyhill Bridge to vehicular traffic. Work is being progressed by Transport Scotland to prepare and publish these supplementary draft Orders as a priority.

It is important to note that whilst all objections to the scheme have been removed the supplementary draft Orders will carry their own statutory consultation period and should further objections be received then these would have to resolved before proceeding.

Delivery of the scheme itself can only commence when the scheme is approved under the relevant statutory authorisation procedures and thereafter a timetable for construction can be determined in line with available budgets.

A key condition of the agreement for the Scottish Government to move to a 35-hour week was that productivity levels are maintained, and that costs are not increased as a result. These conditions are consistent with the findings of research into shorter working weeks, which point towards the wellbeing benefits of such improvements to terms and conditions and, in some cases, even positive impacts on productivity.

The Scottish Government’s position is that the 3% (of which 2.25% was in-year) pay award for 2024-25, alongside the introduction of the 35-hour week, does represent good value for money. Both elements formed part of a two-year pay deal, which was reached during a period of high inflation, and is consistent with pay awards reached across the Scottish Public Sector. Achieving agreement on pay with the recognised trade unions for this extended period has also meant the Scottish Government has avoided the costly impacts of industrial action.

Ministers recognise the crucial role that our colleges play and notably, the Audit Scotland report recognises that the courses that college students undertake contribute not only to their own development but also to Scotland’s sustainable economic growth.

Against a challenging backdrop of financial pressures across the public sector, a priority has been to protect investment in the college sector as far as possible. It is the responsibility of each college to manage its operations in line with the funding allocated by the Scottish Funding Council (SFC). As part of this we expect each institution to continually reassess operational models and explore avenues for cost reduction and revenue maximisation in this demanding climate.

We are committed to work alongside colleges and the SFC through the Tripartite Alignment Group to provide greater flexibility for institutions in how they use the investment that is available. The SFC has proposed modifications to the college funding model to provide short-term relief to colleges and has expressed plans to revamp the funding model for future sustainability; while Scottish Government has progressed work on college disposals in order to help deliver flexibilities to colleges in their approach to managing their estate.

The Audit Scotland report recognises there are important opportunities coming from reform. As we progress with reform, we will work closely with colleges and other stakeholders to ensure that they have a sustainable future.

The introduction of drop off charges, their level and their terms and conditions are a matter for individual airports. We expect airport operators to comply with equalities legislation in all aspects of their operations, including in relation to drop off charges and providing support for disabled passengers arriving at an airport.

Public sector pay continues to be a significant driver of in-year pressures and, under the current devolution settlement, any substantive in-year pressures can only be funded by reductions elsewhere. If the UK Government does not fully fund public sector pay deals, there will be a significant gap between the expectations of the workforce and the available funding.

As confirmed in the Fiscal Statement to the Scottish Parliament on 3 September, the Scottish Government has identified a range of measures to support the 2024-25 budget totalling almost £1 billion, of which up to £500 million are direct savings. Correspondence with the Convenor of the Finance and Public Administration on 3 September, confirmed that the impact of these measures has been appropriately assessed, including in formal impact assessments where required.

In relation to local authority pay awards, the Scottish Government has agreed with local government that they can draw on specific existing programmes to fund pay deals. The relevant funding will be replaced in 2025-26 and assurance has been sought from local authorities to confirm that they are able to mitigate any impacts in 2024-25 and that delivery timescales will not be significantly impacted.

The Scottish Government, through Transport Scotland’s Trunk Road Casualty Reduction programme of works, is delivering a speed management scheme on the A75 at Crocketford. Construction is programmed to commence by November 2024 through the delivery of an additional electronic vehicle-activated sign (VAS) to encourage vehicles to comply with the speed limit in addition to two existing VAS in the town. Changes to the signs and footway are programmed for the 2025-26 financial year, but subject to the availability of resources. This will involve upgrading the existing signs to current standards and providing a new section of footway and uncontrolled crossings at Park of Brandedleys.

The Scottish Government, through Transport Scotland’s Trunk Road Casualty Reduction programme of works, is delivering improvements at the A75 Haugh of Urr junction. Construction of static sign improvements, relating to advanced direction signage and rationalisation of existing signage, is currently programmed for November 2024. An electronic vehicle-activated sign system to warn drivers of vehicles turning or waiting to turn at the junction is also proposed at the junction. This may be delivered this financial year subject to the approval of a non-prescribed sign application.

Scottish Income Tax policy for 2025-26 will be announced during the annual Budget process.

The Scottish Government’s Zero Waste Plan, published in 2010, set out targets to recycle 70% of all waste by 2025 and 60% of household waste by 2020.

Scotland has made significant progress in reducing waste, increasing recycling and decarbonising the waste sector, but there is further work to be done. The overall recycling rate in Scotland of 62.3% in 2022 is at its highest level since records began in 2011. In 2022 the household recycling rate was 43.3%.

The Circular Economy (Scotland) Act, passed unanimously in June 2024, includes our commitment to determine new circular economy targets for Scotland from 2025, to support our work to reduce emissions to tackle the climate emergency.