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Scottish Budget Draft Budget 2014-15

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Chapter 9 Infrastructure, Investment and Cities

Portfolio Responsibilities

The Infrastructure, Investment and Cities (IIC) portfolio is responsible for transport policy and delivery, housing, regeneration, welfare reform mitigation, fuel poverty, veterans, digital economy, European Structural Funds, Scottish Water, Scottish Government procurement, Scottish Futures Trust, cities strategy, parliamentary business and government strategy.

In line with the Government Economic Strategy the majority of the portfolio spend is focused on investment in transport and water infrastructure, providing good quality, sustainable and affordable housing, helping to regenerate our communities and mitigating, where we can, the adverse impacts of the UK Government's reforms to the benefits system. Overall, the portfolio will look to support a renewed focus on cities, towns and their regions, given the critical contribution they make as drivers of economic growth.

Supporting Recovery And Increasing Sustainable Economic Growth

Cities are vital to the success of the Scottish economy. The more successful our cities, and their city regions, the more successful Scotland will become. We will continue to invest directly in cities, working with them individually and collectively, through the Scottish Cities Alliance, to take account of their own priorities. We recognise the benefits that improved connectivity will deliver for Scotland and we are committed to dualling the roads between all our cities. We have accelerated our £3 billion plans for the A9 between Inverness and Perth, which will start in 2015-16. Our £842 million investment in the New South Glasgow Hospitals and the £246 million for the modernisation of Glasgow's subway brings our investment into Scotland's largest city to over £1 billion. The £7 million Cities Investment Fund will continue to deliver a range of collaborative projects, designed to attract new investment into our cities and their regions, making them more competitive and increasing productivity and jobs. The projects span all four themes of the Agenda for Cities: connectivity, sustainability, knowledge and culture, ensuring that Scotland's cities become increasingly able to compete in global markets and drive the Scottish economy.

An efficient transport system is essential for enhancing productivity and delivering faster, more sustainable growth in a low carbon economy. It can help open up new markets, increase access to employment and help build a critical mass of business that can drive up competitiveness and thereby deliver faster sustainable economic growth.

Ongoing investment in transport also connects regions and people to economic opportunity, whether through business, leisure travel, or tourism, thus contributing to national social cohesion and reducing the disparity between the regions of Scotland. Our investment in Scotland's transport infrastructure therefore plays a key role in creating the best possible conditions for business success. It also directly supports business. In 2012-13, over 95 per cent of Transport Scotland's £2 billion budget was invested back into the private sector, supporting 25 per cent of civil engineering contracts in Scotland and over 12,000 jobs. Figures from Network Rail show that investment in enhancing the rail network generated more than £154 million of work for businesses in Scotland in 2012-13, sustaining over 4,300 jobs across the country in addition to those staff directly employed by Network Rail Scotland.

Housing also has a direct impact on the economy - every £100 million of housing expenditure, whether from the Scottish Government or other sources, supports a total of £180 million of economic activity and around 1,300 jobs.

Our housing investment programmes are designed to maximise the combined impact of Scottish Government and external funding on both the provision of affordable housing and the house building industry: £1 million of Scottish Government funding for housing through the Affordable Housing Supply Programme (AHSP) levers in between £1 million and £4 million of external funding, while £2.8 million of Scottish Government guarantee through the original National Housing Trust (NHT) model unlocks around £146 million of housing development and 1,000 new-build homes. The MI New Home scheme, Help to Buy (Scotland), our new £120 million shared equity scheme which will launch this Autumn and is supported by a Scottish Government guarantee, and other innovative financing approaches, build on the success of the NHT initiative and will unlock significant additional investment in housing, creating and sustaining jobs and increasing confidence in the house building industry's future.

The Scottish Government has committed to provide at least 30,000 additional affordable homes over the five years to 2015-16, of which at least 20,000 will be for social rent, including 5,000 new council homes. All affordable homes delivered with direct Scottish Government support in the form of subsidy, loan, guarantee or waiver of receipts are counted towards the target. In July 2013 we announced an increase in grant subsidy of £16,000 for every new council and housing association property for social rent. We have also boosted our budgets for new affordable homes considerably and will now invest over £970 million over the three year period to March 2015. These steps will maintain momentum in the programme, and deliver vital support for construction and house building companies throughout Scotland.

The UK Government's cuts and changes to the welfare system are set to impact on people and services across Scotland. We believe that our commitments to economic growth, to reducing child poverty, and to reducing the gap between rich and poor will be undermined by these reforms. Our challenge is to be as creative and as innovative as we can within our legislative competence and our available resources to mitigate the impacts wherever possible. This includes maintaining Welfare Reform Mitigation spend at £45 million.

Scottish Ministers' aspiration is to transform Scotland into a world leading digital nation by 2020. Improving connectivity across Scotland will support future innovation in the digital economy and ensure Scotland's business base can remain competitive in the global digital environment. It will also play a critical role in driving economic growth and competitiveness, creating more and better jobs. It will shape public service delivery, increasing the number of services to be delivered on-line which can be more effective and cost less. It will support the transition to a low carbon economy, opening up new opportunities for a different way of living and working that encourages strong and growing rural towns and villages and respects and protects our environment.

European Structural Funds play a significant role in meeting Europe 2020 and Scottish Government objectives by supporting infrastructure investments, improving digital connectivity, supporting the transition to a low carbon economy, raising skill levels and supporting individuals into employment - all of which help us achieve our full economic potential. The programmes follow the seven year cycle set by the EU budget, and run until the end of 2013, with some activity continuing through until 2015. In this current programme the Scottish Government front loaded expenditure to support economic recovery and growth and by the end of the current programme we aim to have secured training and improved skills for almost 400,000 individuals and to have delivered over 52,500 new jobs for Scotland. We will also have invested over £13 million in improvements to multimodal transport systems and over £4 million in support of renewable energy projects and energy efficiency systems in Scotland.

Furthermore, during the last year, we have made £15 million of the European Regional Development Fund (ERDF) available to projects supporting the growth of small and medium sized enterprises (SMEs). We are currently in the process of directing the remaining £20 million of the ERDF programme towards projects which will promote business innovation and growth.

Scottish Water supplies some 1.3 billion litres of high quality drinking water to 2.4 million homes and 159,000 businesses every day. Nearly 1 billion litres of waste water is taken away and treated before being returned to the rivers and seas. With an annual turnover of over £1.1 billion, it is one of Scotland's 20 largest businesses. It employs some 3,500 staff and sustains a further 20 per cent of the Scottish civil construction industry.

Since its creation in 2002, Scottish Water has delivered significant improvements to services. Levels of service are now comparable with private sector comparators whilst the average household charge is £54 lower than in England and Wales. We are committed to ensuring that services continue to improve and that Scottish Water delivers its vision to be Scotland's most valued and trusted business. Modern, efficient and affordable services are key to driving economic growth, boosting competitiveness and ensuring that Scotland's environment is protected for future generations.

We set out the investment required for the current regulatory period 2010-15 in October 2009. This sets out the improvements that Scottish Water is required to make with regard to drinking water quality, the environment, customer service, enabling new connections, and mitigating and adapting to climate change. The cost of this programme has been determined by the economic regulator, the Water Industry Commission for Scotland, at £2.5 billion. This is being financed by customers and by government lending. We will confirm our investment priorities for the next regulatory period 2015-21 in Summer 2014.

As a Hydro Nation, Scotland regards water as part of its national and international identity; it recognises that the sustainable management of its water resource is crucial to its future success and a key component of the flourishing low carbon economy and the basis of growing international trade opportunities. £5 million has been identified in 2014-15 to support research into new technologies, product development, and knowledge exchange with developing countries.

With an annual spend of around £9 billion each year, public sector procurement in Scotland can help support sustainable economic growth and contribute to many of the Scottish Government's strategic priorities. For example, thinking creatively about how we develop procurement strategies and set up specific contracts can help ensure a level playing field for SMEs. We can also encourage innovation by, wherever possible, specifying the outcomes we want to achieve through our procurement, rather than a particular method of achieving them.

The Scottish Futures Trust (SFT) was established in 2008 with the aim of helping the Scottish Government to achieve better value for money from public infrastructure investment in Scotland. The importance of this work has grown, given the speed and scale of planned reductions in capital budgets. Overall, SFT has delivered £132 million of net future benefits and savings during 2012-13, as set out in their Statement of Benefits 2012-13. Added to the three previous years, SFT has now delivered a total of £503 million of savings and benefits to the people of Scotland. SFT is active across the public sector and is delivering innovative new ways of working that will result in improved value for money.

The Parliamentary Business and Government Strategy budget supports a wide range of strategic government activity: it funds central analytical services and strategic communications activity, which help to create a strong evidence base and improve the lives of the people of Scotland by raising awareness, building understanding and changing behaviours; it provides economic advice and analysis on developments in the Scottish and global economies, the public finances and the labour market; it supports Ministers and colleagues across the Scottish Government when developing policy in energy, business, economic strategy and constitutional reform, including preparations for the referendum on Scottish independence in September 2014; it funds the implementation of the financial provisions in the Scotland Act 2012; and it enables the Government to fulfil its responsibilities to ensure the public understand and benefit from these policies.

National Outcomes

The IIC portfolio plays a significant role in helping achieve the Scottish Government's Purpose, primarily through contributing to three Strategic Objectives: Wealthier and Fairer, Safer and Stronger, and Greener. It plays an important role in delivering a range of the national outcomes, in particular in achieving National Outcome 10: 'We live in well designed, sustainable places where we are able to access the amenities and services we need'. But our transport, housing, welfare reform mitigation, water, digital and cities policies have a wide range of inter-connections across all 16 National Outcomes. The links between homes, neighbourhoods, employment opportunities, community assets and capacity, education, health and crime, and preventative support for vulnerable and ageing populations are all important components of our current strategy.

Our National Transport Strategy (NTS) introduced three key strategic outcomes that are transport specific, aligned to nine of the National Outcomes. These are to improve journey times and connections, reduce emissions, and improve quality, accessibility and affordability.

All of our major construction projects, including the Queensferry Crossing, M8/M73/M74 Motorway Improvements Project, the Aberdeen Western Peripheral Route and Balmedie to Tipperty Project, the Borders Railway, the Edinburgh to Glasgow Improvements Programme and wider programme of network electrification will improve journey times and connections, as will the implementation of our Ferries Plan announced in December 2012. Our continuing commitment to the National Concessionary Travel Scheme for older and disabled people supports accessibility for vulnerable groups, and our approach to capping fare increases in ferries and rail, along with support to the Air Discount Scheme, is designed to ensure affordability and accessibility. Progressing electrification of the railway, encouraging modal shift through freight grants, supporting the development of the use of low carbon and electric vehicles and sustainable and active travel will all help to reduce emissions.

We are committed to retaining Scottish Water within the public sector. It is demonstrating that it is possible to deliver high quality public services at the levels of efficiency reached by private sector comparators. Our support for Scottish Water's investment programme is key to the delivery of improvements to water and sewerage services - services which are essential for safeguarding public health and protecting our environment.

As set out in Scotland's Sustainable Housing Strategy, a national retrofit programme to improve the energy efficiency of the existing housing stock, including the use of renewable energy, is required to meet our climate change targets and to assist in tackling fuel poverty. Our Home Energy Efficiency Programmes for Scotland (HEEPS) were launched in April 2013, bringing together Scottish Government funding and support from the new Energy Company Obligation (ECO). Local authorities have a central role in the development and delivery of the programme, which will have significant benefits for local economies.

Our Regeneration Strategy, Achieving a Sustainable Future, describes our vision of a Scotland where our most disadvantaged communities are supported and where all places are sustainable and promote wellbeing. We are clear on the need for regeneration to be holistic, supporting economically, physically and socially sustainable and empowered communities. We have fulfilled our commitment to undertake a review of town centres over the past year and we will produce an action plan in the Autumn. Revitalising Scotland's town centres will require a concerted effort in partnership with a range of stakeholders and the plan will be a focal point for communities and local authorities wanting to take action.

The roll out of Universal Credit (UC) in Scotland, together with other welfare reforms already introduced, is expected to have a significant impact on devolved policies and services. There is also an expected impact on our Purpose Targets as set out in the Scottish Government's National Performance Framework, particularly economic growth, solidarity and participation. While not exhaustive, examples of outcomes which may be affected include Scottish Government efforts around improving health in Scotland, tackling inequalities and reducing poverty. Others may include improving the life chances of children, younger people and families as well as ensuring everyone has the opportunity to work and improve their skills.

Scottish Ministers have taken action to mitigate the impacts of the UK Government's reforms with the powers and resources available to them. We have established a £33 million Scottish Welfare Fund, adding £9.2 million to the funding received from the UK Government, which provides crisis grants for individuals and families facing financial difficulty, and community care grants to assist families and old people to stay in the community. In addition, in partnership with the Scottish Legal Aid Board and the Money Advice Service, we have established a new £7.45 million Making Advice Work grant funding programme. The Welfare Reform (Further Provision) (Scotland) Act 2012 places an obligation on Scottish Ministers to report to the Scottish Parliament over the next five years on the impact that the UK Welfare Reform Act is likely to have on the people of Scotland. We published our first report in June 2013[6] together with a report outlining the approach we have taken to mitigation in partnership with our stakeholders[7]. We will update this paper on a continuing basis.

Budget Changes

Overall, the portfolio has seen an increase in the 2014-15 budgets since the Spending Review, primarily as a result of the allocation of capital consequentials, which the Scottish Government has used to stimulate the economy and achieve other outcomes through investment in affordable homes, home ownership and digital and transport infrastructure.

In addition, there has been movement between resource and capital budgets, primarily in rail, in line with the latest Draft Determination from the Office of Rail Regulation (ORR).

Funding for Welfare Reform Mitigation now includes, and baselines, the budgets for the Scottish Welfare Fund, as well as maintaining a number of new funding streams, such as advice services, announced in the course of 2013-14.

Our Priorities

In 2014-15, the Scottish Government will continue to focus expenditure on activity that will stimulate economic growth. We will continue to drive out efficiencies from existing activity and look for innovative ways to deliver as much as possible for the public pound. We will continue our significant investment in the road network, spending £638 million on motorways and trunk roads in 2014-15, including £241 million on the construction of the Queensferry Crossing, whilst increasing our expenditure on support for sustainable and active travel by £10 million.

We will also contribute funding for Glasgow's SPT Fastlink, in support of the Commonwealth Games. We have pledged to support improvements to the Caledonian Sleeper services and will continue with our ambitious investment in the rail network through the start of the new regulatory control period for Network Rail, including the construction of the Borders railway and the development of the route between Edinburgh Waverley and Glasgow Queen Street. In total we will spend £843 million on the development of rail services in 2014-15.

In recognising the importance of having a cohesive economy and good transport links to the whole of Scotland, the Scottish Government has increased its plans for expenditure on air and has increased its investment in ferry services in line with the Ferries Plan published in December 2012. It has also increased expenditure on concessionary fares and bus services, recognising the importance of these services to particular groups in our society.

In 2014-15, we will spend over £350 million on housing supply through both grant and financial transaction funding, which will contribute to the delivery of 6,000 more affordable homes and support recovery in the private sector. This will include funding for the successful applicants to the Greener Homes Innovation Scheme, aimed at encouraging the provision of sustainable, greener homes. In addition, there is further funding for affordable housing supply within the local government capital settlement. We will also use the £25 million Regeneration Capital Grant Fund, in partnership with COSLA, and continue to use the £50 million Scottish (JESSICA) Spruce Fund to target sustainable investment in disadvantaged areas. We will provide funding of £79 million for HEEPS, which, together with ECO, is expected to deliver a combined funding package of around £200 million for energy efficiency measures.

We will provide £10 million in 2014-15 for Registered Social Landlords (RSLs) to continue adapting their properties to help meet the needs of older people and disabled people. The investment will reduce pressure on health and social care services by enabling people to live independently, safely and comfortably at home; reducing accidents requiring hospital admission; and enabling people to return to home sooner after hospital treatment. Through this preventative approach, average expenditure on each adaptation of £1,800 can save health and social care systems over £10,000.

We are committed to doing all we can within our existing powers and resources to mitigate the impacts of welfare reform on people in Scotland. During 2013-14, we increased total funding for Welfare Reform Mitigation to £45.2 million and in 2014-15 we are maintaining spend at this level. This includes maintaining our funding for the Scottish Welfare Fund at £33 million and for advice and support services. In addition, we are funding a range of pilots and transitional support to help people make the move to the new benefits system. We also continue to invest in a range of third sector initiatives for income maximisation and to tackle poverty, particularly in support of the Child Poverty Strategy for Scotland.

We will continue to develop our investment plans for Scotland's water and sewerage infrastructure for 2015-21. This will reflect our agreement to invest £250 million over the next five years to upgrade Glasgow's waste water infrastructure to improve the environment of the River Clyde and to tackle flooding.

We will also continue to develop digital infrastructure in accordance with our investment plans and strategies and use European Structural Funds to support projects that will improve Scotland's competitiveness. £1 million has also been provided to maximise the value of asset disposals and property rationalisation across the public sector. Savings released from these actions by 2014-15 will be used to support the Government's investment programme.

Finally, we will continue to prepare for a referendum on 18 September 2014 to give the people of Scotland the opportunity to vote on whether Scotland should be an independent country. The Scottish Independence Referendum Bill is designed to deliver a fair, open and democratic process which is conducted and regulated to the highest international standards and which commands the confidence of the public and of both sides of the debate. As identified in the Scottish Independence Referendum Bill Financial Memorandum, the referendum is estimated to cost around £13.7 million in total. We will also publish a White Paper in Autumn 2013 setting out the Scottish Government's vision for an independent Scotland, to inform the choice people will be making in the referendum.

Table 9.01: Spending Plans (Level 2)

Level 2 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Air Services 39.9 50.4 49.4
Concessionary Fares and Bus Services 248.6 253.6 256.6
Ferry Services 111.1 146.8 166.0
Motorways and Trunk Roads 698.1 639.0 695.2
Other Transport Policy, Projects and Agency Administration 79.6 69.9 55.9
Rail Services 828.2 842.8 868.7
Scottish Futures Fund 15.5 50.0 20.2
Housing & Regeneration 364.6 532.9 618.6
Welfare Reform Mitigation 12.2 45.2 45.2
Digital Economy and Infrastructure 4.0 13.8 1.0
European Regional Development Fund - 2007-13 Programmes - - -
European Social Fund - 2007-13 Programmes - - -
Scottish Water (24.3) 20.5 25.5
Other Expenditure 7.2 (17.8) 6.2
Parliamentary Business and Government Strategy 9.8 29.4 46.2
Scottish Housing Regulator 3.8 4.0 3.7
Total Level 2 2,398.3 2,680.5 2,858.4
of which:
DEL Resource 1,238.7 1,158.5 1,180.1
DEL Capital 1,128.7 1,326.7 1,467.3
Financial Transactions 30.9 195.3 211.0
AME - - -
Central Government Grants to Local Authorities 114.3 162.2 157.1

Table 9.02: Detailed Spending Plans (Level 2 real terms at 2013-14 prices)

Level 2 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Air Services 39.9 49.5 47.6
Concessionary Fares & Bus Services 248.6 248.9 247.4
Ferry Services 111.1 144.1 160.0
Motorways & Trunk Roads 698.1 627.1 670.2
Other Transport Policy, Projects and Agency Administration 79.6 68.6 53.9
Rail Services 828.2 827.1 837.4
Scottish Futures Fund 15.5 49.1 19.5
Housing & Regeneration 364.6 523.0 596.3
Welfare Reform Mitigation 12.2 44.4 43.6
Digital Economy and Infrastructure 4.0 13.5 1.0
European Regional Development Fund - 2007-13 Programmes - - -
European Social Fund - 2007-13 Programmes - - -
Scottish Water (24.3) 20.1 24.6
Other Expenditure 7.2 (17.5) 6.0
Parliamentary Business and Government Strategy 9.8 28.9 44.5
Scottish Housing Regulator 3.8 3.9 3.6
Total Level 2 2,398.3 2,630.7 2,755.6
of which:
DEL Resource 1,238.7 1,137.0 1,137.6
DEL Capital 1,128.7 1,302.0 1,414.6
Financial Transactions 30.9 191.7 203.4
AME - - -
Central Government Grants to Local Authorities 114.3 159.2 151.4

Air Services

Table 9.03: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Highlands and Islands Airports Limited 32.4 36.4 35.4
Support for Air Services 7.5 14.0 14.0
Total 39.9 50.4 49.4
of which:
DEL Resource 34.9 38.4 38.4
DEL Capital 5.0 12.0 11.0
AME - - -

What the budget does

The budget supports Highlands and Islands Airports Limited (HIAL), which operates 11 airports at Barra, Benbecula, Campbeltown, Dundee, Inverness, Islay, Kirkwall, Stornoway, Sumburgh, Tiree and Wick. The budget includes resources for capital investment required by the regulatory authorities. It sustains the operation and development of airport services throughout the Highlands and Islands, supporting the economic and social development of remote and island communities. The budget also supports the Air Discount Scheme (ADS) which provides discounted fares on eligible routes to people whose main residence is in Orkney, Shetland, the Western Isles, Islay, Colonsay and Jura, Caithness and north-west Sutherland. In addition, the budget supports lifeline Public Service Obligation (PSO) air services between Glasgow and Barra, Campbeltown and Tiree, which cannot be provided commercially.

Budget changes

Since the publication of the Spending Review, additional funding following reclassification of HIAL to an NDPB has resulted in budget cover required for depreciation costs for the period 2013-14 to 2015-16. Additional funding has also been provided to cover the cost of new aircraft and increased operational costs.

In 2014-15 we will:

  • ensure that HIAL has the necessary resources to maintain its 11 airports at current levels of operational ability;
  • continue to fund the lifeline PSO air services to Barra, Campbeltown and Tiree; and
  • continue to fund the Air Discount Scheme.

Through continuing to invest in these air services we will help to ensure that Scotland is a cohesive nation where all its people are able to access the services and amenities that they need and are connected to the opportunities provided by the global economy.

Concessionary Fares and Bus Services

Table 9.04: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Smartcard Programme 2.8 2.8 2.8
Concessionary Fares 192.0 197.0 200.0
Support for Bus Services 53.8 53.8 53.8
Total Level 2 248.6 253.6 256.6
of which:
DEL Resource 246.6 251.6 254.6
DEL Capital 2.0 2.0 2.0
AME - - -

What the budget does

The budget provides support for the development and delivery of concessionary travel schemes for older, disabled and young people. The funding provides for bus infrastructure systems to recognise Smartcards, which is essential to effective implementation of our fraud strategy. Access to national concessionary travel is through Smartcards issued as part of the Scottish Citizens' National Entitlement Card project.

Bus Service Operators' Grant (BSOG) provides support to the bus industry across Scotland. Its aim is principally to benefit passengers by helping operators to keep their fares down and enabling operators to run services that might not otherwise be commercially viable, thus contributing to the maintenance of the overall bus network. It helps sustain the economy and reduce the cost to local authorities of supporting non-commercial, socially necessary services.

The Bus Investment Fund supports partnership working to improve bus services, standards and infrastructure across Scotland.

Budget changes

Since the publication of the Spending Review there has been an increase of £5 million to the budget for concessionary fares in 2014-15 to bring it in line with the Statutory Instrument laid in February 2013.

In 2014-15 we will:

  • continue to deliver the concessionary travel schemes to provide free or discounted trips on public transport to the people that need it most, connecting Scotland's people and communities;
  • continue to make efficiency savings in the operation of the schemes and the validation of bus operator claims; and
  • continue to support partnership working to improve bus services, standards and infrastructure through the bus investment fund.

Ferry Services

Table 9.05: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Support for Ferry Services 97.5 113.9 118.2
Vessels and Piers 7.6 26.9 41.0
Road Equivalent Tariff 6.0 6.0 6.8
Total 111.1 146.8 166.0
of which:
DEL Resource 103.5 119.9 125.0
DEL Capital 7.6 26.9 41.0
AME - - -

What the budget does

The Support for Ferry Services budget line covers the subsidy paid for the:

  • Clyde and Hebrides Ferry Services (CHFS) contract;
  • Northern Isles Ferry Services contract;
  • Northern Isles Lift-On Lift-Off Freight Services contract; and
  • Gourock-Dunoon Ferry Service contract.

The Vessels and Piers budget line provides for loans to Caledonian Maritime Assets Ltd (CMAL) for the procurement of vessels used on the CHFS network and grants to ports (other than those owned by local authorities) for improvement works to piers and harbours that support lifeline ferry services.

The budget line for Road Equivalent Tariff (RET) funds this approach to ferry fare setting on the services to the Western Isles, Coll and Tiree.

All spending on ferry services is guided by the Scottish Government's Ferries Plan, published in December 2012.

Budget changes

Since the publication of the Spending Review, £10 million of additional funding has been allocated in 2014-15 to support the ferry services and an additional £21.1 million has been allocated to invest in replacement vessels and port infrastructure.

In 2014-15 we will:

  • maintain ferry services on the Clyde and Hebrides, Gourock-Dunoon and Northern Isles routes;
  • begin preparations to re-tender for the Clyde and Hebrides Ferry Services contract to replace the current contract which expires in October 2016;
  • introduce into service a major new vessel, the MV Loch Seaforth, to the Stornoway-Ullapool route and complete accompanying harbour works;
  • maintain the RET fares for the routes to the Western Isles, Coll, Tiree, Islay, Gigha and Colonsay and undertake the roll out to Arran; and
  • continue implementation of the Ferries Plan.

Motorways and Trunk Roads

Table 9.06: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Structural Repairs 35.0 25.0 25.0
Network Strengthening 30.0 38.8 36.0
Private Finance Initiative (PFI) Payments 76.8 84.7 84.7
Routine and Winter Maintenance 70.5 74.0 77.1
Other Current Expenditure 4.8 9.0 9.0
Roads Improvement 14.2 14.2 14.2
Capital Land and Works 107.6 51.0 81.0
Queensferry Crossing 259.0 241.0 245.0
Roads Depreciation 89.0 89.0 110.9
Forth and Tay Road Bridge Authorities 11.2 12.3 12.3
Total 698.1 639.0 695.2
of which:
DEL Resource 247.9 263.8 288.5
DEL Capital 450.2 375.2 406.7
AME - - -

What the budget does

In addition to major roads construction projects and other road improvements, the budget delivers routine, cyclical and winter maintenance to maintain the safety, environment and amenity of the trunk road network. It includes road safety improvement programmes, information for road travellers and an emergency response facility to deal with emergencies and incidents on the network.

The budget also covers the construction of the Queensferry Crossing.

Budget changes

Since the publication of the Spending Review, funding for the Road Safety Camera Partnerships of £4.2 million per annum has transferred from the Justice portfolio and this is included in Other Current Expenditure. Other budget changes relate to the phasing of construction works in Capital Land and Works and the Queensferry Crossing.

In 2014-15 we will:

  • continue construction of the Queensferry Crossing as programmed;
  • progress construction of the M8 Baillieston to Newhouse motorway upgrade, together with improvements to the M74 Raith Interchange and the M8 associated improvements;
  • complete the procurement of the Aberdeen Western Peripheral Route (AWPR) and Balmedie projects;
  • complete construction on the A75 Dunragit Bypass and A82 Crianlarich Bypass trunk road improvements;
  • progress construction on the A96 Inveramsay Bridge and A737 Dalry Bypass;
  • progress development work on the A77 Maybole Bypass, A82 Loch Lomond and A90 Haudagain Roundabout;
  • progress design and development work on dualling the A9 and A96;
  • focus on essential improvements and on safety and congestion relief improvements that offer value for money;
  • use lower cost repairs alongside safety critical work until funding allows renewal of life expired roads and strengthening of bridges to take place;
  • maximise value in the routine and winter maintenance budgets by identifying savings in the work delivered by the Trunk Road Operating Companies; and
  • continue to maintain the safe operation of the Forth and Tay Road Bridges.

Investment in road infrastructure is vital to ensuring that Scotland is an attractive place for doing business in Europe.

Other Transport Policy, Projects and Agency Administration

Table 9.07: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Transport Information 1.2 1.2 1.2
Agency Administration Costs 17.3 16.9 16.9
Strategic Transport Projects Review 3.6 3.6 3.6
Support for Freight Industry 1.1 1.1 1.1
Scottish Canals 13.3 10.0 10.0
Support for Sustainable and Active Travel 35.0 29.0 15.0
Travel Strategy and Innovation 5.1 5.1 5.1
Road Safety 3.0 3.0 3.0
Total 79.6 69.9 55.9
of which:
DEL Resource 44.0 39.2 38.9
DEL Capital 35.6 30.7 17.0
AME - - -

What the budget does

The Transport Information budget funds the provision of impartial travel information services such as Traveline and Transport Direct.

The Agency Administration budget funds the running costs of Transport Scotland.

The Strategic Transport Projects Review (STPR) budget is designed to ensure the robustness of the appraisal and analysis tools that enable decisions to be made on individual projects, as well as supporting the wider business case development and appraisal.

The Support for the Freight Industry budget focuses on measures which encourage the freight industry to reduce emissions, including by transferring freight from road to rail and water, where practicable.

The grant to Scottish Canals supports the maintenance of Scotland's canals and their contribution to economic regeneration.

The budget for Sustainable and Active Travel delivers support for the promotion of more sustainable travel choices, including support for the actions in the Cycling Action Plan for Scotland as well as work to promote sustainable transport to organisations and in communities, e.g. the development of a network of car clubs across Scotland. It includes funding for the core Fastlink scheme in Glasgow (£20 million in 2013-14 and £10 million in 2014-15).

The budget for Transport Strategy and Innovation provides running cost support for groups including Regional Transport Partnerships and the Mobility and Access Committee for Scotland (MACS).

The Road Safety budget covers Road Safety Scotland's delivery of road safety research, education and publicity and support for partnership working under the Road Safety Framework to 2020. Scotland currently has some of the safest roads in Europe and we will continue to strive to make road travel safer.

Budget changes

Since the publication of the Spending Review, additional funding of £14 million in 2014-15 has been allocated for Support for Sustainable and Active Travel, aimed at cycling and walking infrastructure.

In 2014-15 we will:

  • continue development of a route strategy for the dualling of the A96;
  • operate the Mode Shift Revenue Support and Waterborne Freight Grant schemes and promote best practice in the freight industry;
  • continue to contribute to economic regeneration through Scottish Canals involvement in the Helix project;
  • continue to support the operation of Regional Transport Partnerships and mobility/accessibility interest groups such as MACS;
  • contribute funding for Glasgow's SPT Fastlink, in support of the Commonwealth Games;
  • continue to support road safety initiatives to deliver the Road Safety Framework; and
  • continue to invest in infrastructure to encourage cycling and walking, working in partnership with local authorities across the country.

This investment will help to reduce the local and global environmental impact of our consumption and production and will also help us to live longer and healthier lives.

Rail Services

Table 9.08: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Rail Franchise 502.3 380.7 380.8
Rail Infrastructure 278.0 427.6 452.4
Rail Development 3.5 7.0 7.0
Major Public Transport Projects 44.4 27.5 28.5
Total 828.2 842.8 868.7
of which:
DEL Resource 505.8 387.7 382.8
DEL Capital 322.4 455.1 485.9
AME - - -

What the budget does

The budget supports the delivery of ScotRail passenger rail services in Scotland and the Caledonian Sleeper services, the maintenance and safe operation of the Scottish rail infrastructure and investment in network enhancements. The rail infrastructure and track access charge elements of rail services costs paid to Network Rail are determined by the Office of Rail Regulation (ORR).

Funding is provided under Major Public Transport Projects for the delivery of major elements of rail public transport projects such as the Edinburgh to Glasgow Improvements Programme, the Borders Railway and the City of Edinburgh tram project and improvements to the Caledonian Sleeper services.

Budget changes

The UK Government's Autumn Budget Statement in November 2011 made £50 million available in 2011-12 to improve the Caledonian Sleeper service, subject to match funding from the Scottish Government. As it was not possible to procure or refurbish rolling stock in the short period of time that remained in 2011-12, with the agreement of HM Treasury these funds have been allocated in a phased way in the following profile: £5 million, £10 million, £25 million and £10 million in the years 2013-14 to 2016-17.

Since the publication of the Spending Review, the budgets for rail franchise and rail infrastructure have been updated to reflect the latest position on the ORR's Draft Determination for Control Period 5 (2014-19), including the split between resource and capital. This has resulted in a switch of £149 million from resource (rail franchise) to capital (rail infrastructure).

In 2014-15 we will:

  • increase expenditure to improve rail passenger services and operate, maintain and enhance the rail network;
  • continue construction of the Borders Railway to open in 2015;
  • continue design, development and delivery of the Edinburgh to Glasgow Improvement Programme;
  • continue delivery of the wider programme of network electrification, including the Rutherglen and Coatbridge (Whifflet) route;
  • let the next contracts for the provision of ScotRail passenger and Caledonian Sleeper services; and
  • complete the Scottish Government's funding obligation to make a £500 million contribution to the City of Edinburgh Council's tram project.

Scottish Futures Fund

Table 9.09: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Warm Homes Fund 7.8 31.3 -
Future Transport Fund 7.7 18.7 20.2
Total Level 2 15.5 50.0 20.2
of which:
DEL Resource 15.5 24.0 -
DEL Capital - - 20.2
Financial Transactions - 26.0 -
AME - - -

What the budget does

The Future Transport Fund will reduce the impact of transport on our environment, reducing congestion and supporting better public transport, active travel and low carbon vehicles. This investment provides a platform for increasing support thereafter for a range of sustainable transport initiatives, including cycling infrastructure and freight modal shift.

The Warm Homes Fund supports the development of renewable energy projects designed to generate energy and/or income for local communities with high levels of fuel poverty. Organisations eligible to apply are Registered Social Landlords (RSL), local authorities, and partnerships led by them. Support takes the form of grants for feasibility studies and options appraisals, and loans at competitive rates of interest to support project development.

Budget changes

Since the Spending Review, an additional £12.5 million capital has been added in 2014-15 to the Warm Homes Fund to increase the provision to £31.3 million in 2014-15.

In 2014-15 we will:

  • continue to progress initiatives to advance adoption of electric and other low carbon vehicles, including buses;
  • continue to promote active travel choices, through support for cycling and walking initiatives;
  • continue to support freight modal shift; and
  • invest a further £31.3 million in the Warm Homes Fund.

Housing and Regeneration

Table 9.10: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Supporting Economic Growth/Housing Supply 233.5 402.1 503.6
Supporting Sustainability 114.0 108.9 90.6
Supporting Transitions 22.1 26.9 29.4
Less Income (5.0) (5.0) (5.0)
Total 364.6 532.9 618.6
of which:
DEL Resource 97.8 43.2 44.1
DEL Capital 235.9 320.4 363.5
Financial Transactions 30.9 169.3 211.0
AME - - -

Note: Additional resources added to the 2013-14 level 3s after 'Budget Bill 2013-14' are not shown in the figures above. The formal approval of the additional deployment will be at the Autumn Budget Revision 2013-14.

What the budget does

The budget enables us to deliver on our commitment to provide 30,000 new affordable homes over the life of this Parliament, boosting the house building industry through this and other measures. It also helps to fund a range of other housing and regeneration activities: large and small scale regeneration initiatives, energy efficiency upgrades and renewables to tackle fuel poverty and climate change, adaptations to allow older and disabled RSL tenants to remain in their homes, and projects which promote best practice in dealing with homelessness and other housing issues.

In addition there is further funding for housing supply within the local government capital settlement.

Budget changes

Since the publication of Draft Budget 2013-14, the budget for Housing and Regeneration has been augmented to reflect the deployment of additional funding (£60.8 million) at Budget Bill 2013. This includes additional loans and equity funding of £9.2 million to support the housing sector, and additional resources for regeneration and affordable housing supply.

In 2014-15 we will:

  • work in partnership with COSLA to use the £25 million Regeneration Capital Grant Fund to assist regeneration projects across the country, including continued support to urban regeneration companies;
  • help community anchor organisations to grow and respond to the aspirations of their communities through our People and Communities Fund;
  • continue to use the £50 million Scottish (JESSICA) Spruce Fund to target sustainable investment within the 13 eligible local authority areas (and the fund will be recycled into new projects in the future);
  • use our funding to make Scotland the most attractive place for energy companies to meet their obligations and support energy efficiency and carbon reduction measures in existing housing to contribute to the Scottish Government target to eradicate fuel poverty by 2016, as far as is reasonably practicable, and the targets within the Climate Change Act 2009;
  • complete the approvals of the social and affordable housing projects for 30 local authorities from their three year resource planning assumptions. Glasgow and Edinburgh City Councils are also approving three year affordable housing programmes from the resources within the local government Transfer of Management of Development Funding (TMDF) budget;
  • deliver 6,000 affordable homes, of which 4,000 will be social homes;
  • continue to support first time buyers through our existing shared equity programmes and current home owners through the mortgage rescue schemes;
  • continue to support the construction industry and private house building through funding of the House Building Infrastructure Loan Fund and our work with Homes for Scotland and the Council for Mortgage Lenders on MI New Home, the mortgage indemnity scheme for new build housing in Scotland;
  • improve access to affordable mortgages for people buying a new build home through our new Help to Buy (Scotland) shared equity scheme; and
  • provide funding for the successful applicants to the Greener Homes Innovation Scheme aimed at encouraging the provision of sustainable, greener homes.

Welfare Reform Mitigation

Table 9.11: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Scottish Welfare Fund 9.2 37.6 37.6
Other Welfare Reform Mitigation 3.0 7.6 7.6
Total 12.2 45.2 45.2
of which:
DEL Resource 12.2 45.2 45.2
DEL Capital - - -
AME - - -

What the budget does

The Scottish Government has worked in partnership with COSLA, local authorities and others to deliver the new Scottish Welfare Fund (SWF). The scheme, launched on 1 April 2013, is operated by local authorities based on national guidance, and offers Community Care Grants and Crisis Grants. We are maintaining our funding for the new SWF at £33 million, some £9.2 million above the funding transferred from the Department for Work and Pensions. In addition, the Scottish Government is providing funding for organisations in Scotland who provide advice and support services to help people cope with the transition to the new system. This includes £2.5 million across 2013-14 and 2014-15 for Citizens Advice Scotland, and £5.1 million towards the new Making Advice Work grant funding programme, which focuses on improving access to advice for people in Scotland affected by welfare reforms, and which has a total funding of £7.45 million from the Scottish Government and the Money Advice Service.

The budget also supports initiatives with the third sector, Scottish local authorities and others, designed to maximise household incomes for vulnerable groups, and funds work which helps the Scottish Government assess the longer-term and cumulative impact of those reforms on our people and communities.

In 2014-15, we will:

  • provide £33 million for the SWF and introduce a Scottish Welfare Fund Bill to provide a statutory basis for the current SWF. The Bill will establish the fund as a means of providing a safety net in an emergency or a disaster when there is an immediate threat to health and safety, and as a source of help for people on qualifying benefits to access household goods to set up home or remain in their community;
  • monitor the impact of new criteria that we have put in place to maintain access to Scottish Government funded passported benefits, as Universal Credit and Personal Independence Payments are rolled out across Scotland by the UK Government;
  • work with COSLA and the Scottish local authorities to improve our understanding of the impact of the UK Government's welfare reforms;
  • continue our programme of activity in response to the UK Government's welfare reforms, including funding for advice services;
  • prepare a second report on the impact that the UK Welfare Reform Act 2012 is likely to have on the people of Scotland, as we are required by the Welfare Reform (Further Provision) (Scotland) Act 2012; and
  • continue to tackle poverty, particularly child poverty, within the limits of the powers we have.

Digital Economy and Infrastructure

Table 9.12: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Digital Economy and Infrastructure 4.0 13.8 1.0
Total 4.0 13.8 1.0
of which:
DEL Resource 1.0 1.0 1.0
DEL Capital 3.0 12.8 -
AME - - -

What the budget does

The Digital Economy and Infrastructure budget funds the programme that will deliver Scotland's digital future. The capital budget for the Digital Economy and Infrastructure funded Pathfinder, a public sector procurement project for broadband services for the public sector (excluding health) in the Highlands and Islands and South of Scotland. Local authority partners manage the delivery of the project on our behalf.

The resource budget supports innovation and growth in the digital economy by funding business support programmes to ensure Scotland's business base remains competitive in the global marketplace. This budget currently funds programmes through our enterprise agencies and Business Gateway to support businesses to up-skill and encourage better use of digital technology.

Budget changes

Increased funding is available to support Scotland's transition to a world leading digital nation by 2020. Across portfolios this includes funds to support the continued growth and development of our digital economy; increase the digital skills of our population and our business base; transform our public services and to deliver the digital infrastructure that is necessary to ensure that everyone in Scotland is able to take full advantage of the digital opportunity.

The budget for digital infrastructure has increased due to the allocation of Barnett consequentials. This is reflected in the increase in the Next Generation Digital Fund. Responsibility for the fund rests with the Infrastructure, Investment and Cities portfolio, but the fund itself is shown in the Rural Affairs and Environment portfolio as much of this investment will be targeted in rural areas. Further details are available in that chapter.

European Regional Development Fund - 2007-13 Programmes

Table 9.13: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Grants to Local Authorities 14.9 - -
Central Government Spend 44.0 - -
Grants to Local Authorities - EC Income (14.9) - -
Central Government Spend - EC Income (44.0) - -
Total 0.0 0.0 0.0
of which:
DEL Resource - - -
DEL Capital - - -
AME - - -

These figures net to zero because of matching receipts from the European Union

European Social Fund - 2007-13 Programmes

Table 9.14: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Grants to Local Authorities 16.6 - -
Central Government Spend 28.2 - -
Grants to Local Authorities - EC Income (16.6) - -
Central Government Spend - EC Income (28.2) - -
Total 0.0 0.0 0.0
of which:
DEL Resource - - -
DEL Capital - - -
AME - - -

These figures net to zero because of matching receipts from the European Union

What the budget does

We have responsibility for implementing the 2007-13 European Structural Funds programmes in Scotland, principally through the European Regional Development Fund and the European Social Fund, as well as other cross border and transitional programmes.

European Structural Funds contribute to the improvement in Scotland's economic competitiveness through support for business research and innovation, infrastructure, skills improvement and the promotion of lifelong learning across a wide range of sectors, underpinning a number of our Strategic Priorities in delivery of the Scottish Government's Purpose.

European Structural Fund budgets are projections, and may change for example because of Euro exchange rates or financial corrections to the Programmes. Financial corrections are imposed when the European Commission determines that our control and delivery arrangements are insufficient. It is not possible to budget for such financial corrections as they are unquantifiable and dependent on the reviews of the European Commission which are out of the Scottish Government's direct control.

Budget changes

The revised figures reflect changing profiles of expenditure in approved projects.

2014 - 2020 Programmes

The current European Structural Funds programmes are coming to an end and the new programmes will run from 2014 to 2020. The European Commission has announced a number of proposals for the future programmes which will ensure that activity will deliver the Europe 2020 aims of smart, sustainable and inclusive growth.

At present it is not possible to budget for the new programmes while negotiations on the Multi Annual Financial Framework are ongoing in the EU.

Scottish Water

Table 9.15: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Interest on Voted Loans (90.3) (94.5) (94.5)
Voted Loans 66.0 115.0 120.0
Total Level 2 (24.3) 20.5 25.5
of which:
DEL Resource (90.3) (94.5) (94.5)
DEL Capital 66.0 115.0 120.0
AME - - -

What the budget does

In 2014-15 and 2015-16 Scottish Water will continue to deliver the improvements required by Ministers. These will be financed through customer charges and new loans from the Scottish Government as set out above. The budget also recognises the receipt of interest to the resource budget from the loans issued to Scottish Water.

In 2014-15 Scottish Water plans to deliver the improvements to our vital water and sewerage services as set out in its Delivery Plan and as agreed with Ministers. The improvements for 2015-16 will be agreed in 2014 as part of the process to determine customer charges for the period 2015-21.

We have set up a specific group, the Output Monitoring Group (OMG), to ensure that the improvements that we require are delivered. The OMG brings together all major stakeholders in the Scottish water industry, including the Scottish Government, Scottish Water, Water Industry Commission for Scotland, Drinking Water Quality Regulator, Scottish Environment Protection Agency and Consumer Futures, and is chaired by the Scottish Government. It produces quarterly reports, summarising progress in delivering Ministers' objectives by reference to the targets and milestones shown in Scottish Water's Delivery Plan.

Budget changes

Owing to Scottish Water's strong performance in recent years together with favourable movements relative to the assumptions made in 2009 when the financial settlement for 2010-15 was agreed, Scottish Water has been able to reduce its requirement for loans by a further £80 million in 2014-15. The loans required for the next regulatory period 2015-21 will be confirmed in 2014. However, we are assuming that £120 million will be required each year to 2021.

The figures above do not reflect the agreement made in February 2013 during the debate on the 2013-14 Budget Bill to reduce Scottish Water's 2013-14 Capital DEL by £35.5 million to £30.5 million. This change will be presented to the Scottish Parliament as part of the Autumn Budget Revision.

As a 'Hydro Nation' we can capitalise on global economic opportunities and support the good stewardship of water resources in an increasingly water-stressed world. We have made resources available from within the Scottish Water budget to promote this agenda, which includes the climate justice fund, and will continue to do so as more detailed plans emerge. The current estimated profile of expenditure is £4 million and £5 million in 2013-14 and 2014-15 respectively.

Other Expenditure

Table 9.16: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
ESF Programme Operation 1.5 1.5 1.5
Scottish Futures Trust 4.7 4.7 4.7
Asset Management 1.0 (24.0) -
Total 7.2 (17.8) 6.2
of which:
DEL Resource 6.2 5.9 6.2
DEL Capital 1.0 (23.7) -
AME - - -

What the budget does

European funds are used to support economic recovery and future growth. The ESF Programme Operation budget provides the resources necessary to run these programmes of support.

In 2014-15, the Scottish Futures Trust (SFT) will continue to work to enhance value for money for infrastructure investment across the public sector in Scotland. It will, in particular, progress delivery of the pipeline of investment through the Non-Profit Distributing model, working in partnership with others in transport, education and health; support innovative new ways of working, including collaborative procurement through the hub initiative; support the National Housing Trust to create affordable housing; and use Tax Incremental Financing pilots to lever in additional investment for regeneration.

In addition, we have asked SFT to work with public sector bodies across both the local and central estates to deliver a step change in improved property asset management. SFT is administering an Asset Management Fund of £1 million in each of the spending review years, aimed at maximising the value of asset disposals and property rationalisation across the public sector. Savings released from these actions by 2014-15 will be used to support the Government's investment programme.

Audit Scotland estimated that, by the end of 2007-08, the Public Procurement Reform Programme had directly delivered £327 million worth of savings and benefits. That figure has risen to almost £1.2 billion over the last five years.

Budget changes

There have been no further budget changes.

Parliamentary Business and Government Strategy

Table 9.17: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Strategic Communications 2.9 3.0 2.7
Crown Office and Procurator Fiscal Service Inspectorate 0.3 0.3 0.3
Royal and Ceremonial 0.3 0.3 0.3
Office of the Chief Statistician 1.5 1.4 1.4
Strategic Research and Analysis Fund 0.9 0.9 0.9
Scotland Act Implementation 3.5 10.0 40.0
Office of the Chief Economic Adviser 0.4 0.6 0.6
Referendum on Scottish independence - 12.9 -
Total 9.8 29.4 46.2
of which:
DEL Resource 9.8 29.4 46.2
DEL Capital - - -
AME - - -

What the budget does

The Parliamentary Business and Government Strategy Budget:

  • enables Scottish Ministers to communicate with various audiences and to improve their lives through public information and behaviour change campaigns;
  • supports procurement of data and specific technical assistance to strengthen understanding of key developments in the economy and public finances;
  • supports the independent inspection of the Crown Office and Procurator Fiscal Service (COPFS), through the support of the office and production of thematic reports;
  • funds implementation of the financial provisions in the Scotland Act 2012;
  • covers Royal and Ceremonial events and tasks within Scotland; and
  • funds the September 2014 referendum on Scottish independence.

In 2014-15, we will:

  • support public engagement activities to encourage the public to make changes to help create a greener (e.g. home energy and active travel), safer (e.g. road safety) and healthier (e.g. early detection of cancer and advice on smoking, drinking and diet) Scotland;
  • continue to work in partnership with commercial organisations to add value and direct impact to communication campaigns;
  • support Commonwealth Games Legacy and Delivery activity;
  • procure data and technical expertise to help inform and advise on developments in the Scottish economy, including new powers from the Scotland Bill;
  • develop the data the Scottish Government needs to make robust evidence based decisions, to explore and deliver efficiencies in collecting this data;
  • support development work to do more with the data the Scottish Government collects, and improve the accessibility and communication of statistics, particularly the Scottish Neighbourhood Statistics website;
  • deliver thematic reports to the Lord Advocate on risk based topics in the Criminal Justice System with a view to making recommendations leading to improvement;
  • provide additional funding to bodies responsible for implementing new responsibilities, particularly relating to taxation, as set out in the Scotland Act 2012. This includes payments to HMRC for costs incurred by them in planning and implementing the Scottish rate of income tax;
  • continue to cover relevant Royal and Ceremonial expenditure such as Lord Lieutenant expenses, expenses incurred by the Pursebearer to the Lord High Commissioner of the General Assembly of the Church of Scotland and ad-hoc Royal and Ceremonial projects; and
  • continue to prepare the legislative framework for the 2014 referendum on Scottish independence and work with stakeholders to ensure arrangements are in place for the delivery of the referendum, and prepare and distribute a white paper on the Scottish Government's vision of an independent Scotland.

Scottish Housing Regulator

Table 9.18: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Scottish Housing Regulator 3.8 4.0 3.7
Total 3.8 4.0 3.7
of which:
DEL Resource 3.8 3.7 3.7
DEL Capital - 0.3 -
AME - - -

What the budget does

The Scottish Housing Regulator, the independent body established by the Housing (Scotland) Act 2010, has the statutory objective of safeguarding and promoting the interests of the 600,000 households in social rented housing. The budget will allow the Regulator to continue to drive up the quality of services delivered to tenants, homeless people and other service users.

Budget changes

The additional capital budget will allow the Scottish Housing Regulator to complete its investment in a new IT system for collecting, analysing and publishing information on the performance of social landlords.

Central Government Grants to Local Authorities

Table 9.19: More Detailed Spending Plans (Level 3)

Level 3 2013-14
Budget
£m
2014-15
Draft
Budget
£m
2015-16
Plans
£m
Regional Transport Partnership 15.3 22.5 21.9
Cycling, Walking and Safer Routes 5.6 8.2 8.0
Housing Support Grant & Hostels Grant 8.0 8.0 8.0
National Housing Trust Provision (AME) 4.0 4.0 4.0
Vacant Derelict Land grant 7.5 11.0 10.7
Transfer of Management of Dev Funding 73.0 107.3 104.5
Assistance to owners - Glasgow Stock Transfer 0.9 1.2 -
Total 114.3 162.2 157.1
of which:
DEL Resource 8.0 8.0 8.0
DEL Capital 102.3 150.2 145.1
AME 4.0 4.0 4.0