Information

Infrastructure Investment Plan 2021-2022 to 2025-2026: programme pipeline update - September 2021

This pipeline provides information relating to key major infrastructure programmes with an investment of £20 million or more included at Annex D of our Infrastructure Investment Plan, published in February 2021.

This document is part of a collection


Infrastructure Investment Plan 2021-2022 to 2025-2026: Programme Pipeline Update (September 2021)

This pipeline provides information relating to key major infrastructure programmes with an investment of £20 million or more included at Annex D of the Scottish Government's Infrastructure Investment Plan that was published in February 2021, as well as other ongoing key major infrastructure programmes included within previous updates.

All planned dates going forward will be subject to the impact of the ongoing coronavirus (COVID-19) situation.

Sector How is Programme being Funded Programme Delivery Timetable Latest Programme Progress

Transport

Programme Name: A9 Dual carriageway

Programme Description: Phased improvements to the existing A9 Perth to Inverness.

Estimated Total Investment: £3 billion

First three phases of programme capital funded.

A range of financing options to be considered during subsequent stages of design and assessment.

Preparatory and construction work underway with phased programme of schemes as they emerge from statutory process over period to 2025.

Design is nearing completion (for eight of nine sections), delivery is underway and we are finalising the assessment of options to determine the most efficient delivery model for the remainder of the programme.

The second stretch to be dualled between Luncarty and Birnam opened to traffic on 28 August 2021 with overall completion anticipated in winter 2021.

The next section to be constructed is between Tomatin and Moy. The start of procurement for the £115 million construction contract commenced with the publication of the Contract notice on 19 August 2021. This is expected to be awarded in the second half of 2022.

At the same time, design work is also progressing well with the statutory process well underway for seven of the remaining eight schemes.

In addition to Tomatin to Moy, made orders for two adjoining schemes, Glen Garry to Dalwhinnie and Dalwhinnie to Crubenmore were published on 30 July 2021. An additional two schemes: Tay Crossing to Ballinluig and Pitlochry to Killiecrankie are due to be published in the coming weeks.

We also expect a decision by Ministers on Public Local Inquiry Reports for a further three schemes shortly. Subject to positive decisions, this would pave the way for completing the statutory processes for approximately 92% of the programme.

Transport

Programme Name: A96 Dual carriageway

Programme Description: Phased improvements to the existing A96 from Inverness to Aberdeen (including the Nairn Bypass).

Estimated Total Investment: £3 billion

A range of financing options to be considered during subsequent stages of design and assessment.

The Scottish Government is committed to improving the A96 between Inverness and Aberdeen and will take forward a transport enhancements programme on the corridor.

Delivery of any section of the dualling programme can only commence if it is approved under the relevant statutory procedures and thereafter a timetable for its progress can be set.

On the Inverness to Nairn (including Nairn Bypass) section following consideration of the Public Local Inquiry Reporters' Report, Scottish Ministers have decided to make the Orders for the scheme with Decision letters issued on 19 February 2021.

Route option assessment work on the section between Hardmuir and east of Fochabers has been completed with a preferred option announced at a series of public exhibitions held in December 2018. Route option assessment work on the section between east of Huntly and Aberdeen is now complete and the preferred option was announced at a virtual exhibition on 21 December 2020.

As part of the Co-operation Agreement with the Scottish Green Party, concluded on 30 August 2021, the Scottish Government will take forward a transport enhancements programme on the corridor that improves connectivity between surrounding towns, tackles congestion and addresses safety and environmental issues. The current plan is to fully dual the A96 route between Inverness and Aberdeen, however, it has been agreed to conduct a transparent evidence-based review of the programme which will report by the end of 2022.

Transport

Programme Name: A82 Tarbet to Inverarnan

Programme Description: Improvements to the 17 km route between Tarbet and Inverarnan adjacent to the west bank of Loch Lomond.

Estimated Total Investment:

£250 million-£500 million (Range will be narrowed as the project develops.)

Capital Funded

Delivery of the scheme can only commence when it is approved under the statutory procedures and thereafter a timetable for construction can be set.

Detailed development and assessment of the preferred option for the section of the A82 between Tarbet and Inverarnan is being informed by an enhanced understanding of the specific complexities of improving this iconic route. Detailed consideration of mitigating disruption to all road users during construction is being informed through on-going engagement with key stakeholders.

Transport

Programme Name: Glasgow Subway Modernisation

Programme Description: Major modernisation includes a smartcard ticketing system linked to wider integrated ticketing; new rolling stock and signalling; refurbished stations with improved accessibility including replacing escalators.

Estimated Total Investment: Scottish Government contribution of up to £246 million to Strathclyde Partnership for Transport (SPT) towards estimated total project cost £287.5 million.

Grant funding contribution up to period 2024-25.

Modernisation will support the future of the Subway, linking it to other transport modes across the City of Glasgow, including the Interchanges at Govan and Partick and contribute to the regeneration of the City.

The COVID-19 pandemic has had an impact on the modernisation programme with all site works initially stood down. The restrictions on international travel during much of the pandemic has also impacted, with equipment factory testing and installation activity being delayed or prolonged. However, the first three trains are in Glasgow and off-line train testing is nearing completion, with mainline (tunnel) testing now in the final stages of planning. The remaining trains are now in production.

As well as completion of the Stabling Shed extension, and the ongoing technical fit-out of the new Operational Control Centre, Strathclyde Partnership for Transport has worked with the delivery Joint Venture to develop a modified technical programme, which has required some additional physical work on existing signalling. This will see the new trains initially operating on the existing signalling system (rather than having to install the entire new signalling system before the new fleet can run). This should mean the new fleet will start to enter customer service earlier than would currently be the case. .

Transport

Programme Name: Active Freeways

Programme Description: High quality arterial active travel, providing sustainable transport infrastructure between settlements and major trip attractors.

Estimated Total Investment: £50 million

To be determined

For delivery of projects on the ground in 2025-26 (Scheme design and development during 2021-22 to 2024-25).

Progress on Active Freeways concept is being undertaken with the second Strategic Transport Projects Review, which is scheduled to be published for statutory consultation in Winter 2021-22.

Transport

Programme Name: Future Transport Fund – capital to support a range of low and zero carbon investment

Programme Description: Grants and investments to support a range of low and zero carbon transport initiatives such as: electric vehicle charging and hydrogen infrastructure; fleet transformation; Innovation and Sector Transition Initiative; Freight Facilities Grant; Strategic Timber Transport Scheme.

Estimated Total Investment: £287 million

Grant funding

2021-22 to 2025-26

A further £11 million committed to infrastructure transition creating greater access to EV charging facilities. Utilising new evidence and data to support ongoing engagement with public bodies to deliver fleet rationalisation and decarbonisation, investing £9 million in decarbonisation of public body fleets this financial year.

Investing £9.5 million in innovation and supply chain projects, amongst others, working in partnership with the University of St Andrews, Scottish Enterprise and Michelin Scotland Innovation Parc to deliver drivetrain testing facility. Building and equipment specifications completed. Procurement underway with a view to LOCATE opening in the summer of 2023.

Driving the Electric Revolution Scotland (DERS) Industrialisation Centre - Working in partnership with the Strathclyde University to create electrification an innovation centre. Industry engagement for equipment and building specifications has now been completed. DERS is set to open in 2022.

Working with Scottish Enterprise, Scottish Development International and SG to develop a Battery Technology Investment prospectus to ensure a Team Scotland approach to maximising inward investment opportunities during and post COP26.

Working with Tayside Region on multiple Hydrogen related projects amongst others support for Hydrogen Accelerator to develop of a Hydrogen double decker bus to test and demonstrate hydrogen technology working with Michelin Scotland Innovation Parc and Arcola Energy.

Transport

Programme Name: Future Transport Fund – Bus Priority Investment

Programme Description: Investment in bus priority infrastructure to tackle the negative impacts of congestion on bus services and raise bus usage.

Estimated Total Investment: £505 million

Grant funding

2021-22 to 2025-26

The first awards of up to £23.6 million have been made from the Bus Partnership Fund.

The eight partnerships awarded funding in the first round include 27 local authorities across Scotland.

Transport

Programme Name: Support for zero-emission bus fleet transition

Programme Description: Supports the transition to zero-emission buses and will be co-designed with the Bus Decarbonisation Taskforce.

Estimated Total Investment: £120 million

Grant funding

2021-22 to 2025-26

Phase 1 of the Zero Emission Bus Challenge Fund, worth £50 million, is open for bids until 4 November 2021. The Challenge Fund aims to support the pathway to zero emission buses designed by the Bus Decarbonisation Taskforce.

Transport

Programme Name: Rail Decarbonisation Action Plan

Programme Description: Initial Decarbonisation projects subject to STPR Phase 2 alignment (not exhaustive):

- Aberdeen to Central Belt Electrification.

- Traction Power – Feeder stations to support Electrification.

- Levenmouth Electrification

- Fife Phase 1 & 2

- East Kilbride

Estimated Total Investment: £1.17 billion

Grant Funding

2021-22 to 2025-26 for initial projects.

Full programme is around 15 years.

We will decarbonise Scotland's passenger rail services by 2035, ahead of the UK's target of 2040.

1) Continued development of rail decarbonisation strategy and delivery of initial projects, ensuring alignment with STPR2 phase 1, National Transport Strategy, Capital Spending Review and wider SG Policy

2) Alignment of decarbonisation projects with STPR 2, Phase 2 currently underway

Transport

Programme Name: Skye Triangle Infrastructure Programme

Programme Description: Infrastructure improvement work at the following ports: Uig (Skye), Tarbert (Harris) and Lochmaddy (North Uist)

Estimated Total Investment: £95 million

Capital Funding / Grant Funding

Estimated completion dates:

- Tarbert: Autumn 2021 (civil works) Winter 2022-23 (landside terminal building)

- Lochmaddy: February 2023

- Uig: July 2023.

- Tarbert – marine construction contract awarded in September 2019. Works were temporarily suspended due to COVID-19. Re-mobilisation of works commenced on site on 29 June 2020 with completion expected at end November 2021.

- Tarbert - Landside infrastructure works

Tenders to be issued mid/late September 2021. Contract award November 2021 and completion by January 2023 (12 month build).

- Lochmaddy - Previous contract award with LM & Keating was terminated by Comhairle nan Eilean Siar (Western Isles Council) on 4 November 2020. Second procurement / tender stage completed and tender bids received September 2021. Bid evaluation currently being undertaken by council. Increased project cost is due to current market conditions resultant from increase in costs re materials/steel/labour and restrictive supply chains.

- Uig construction project - contract award August 2021 with mobilisation of marine & landside works expected October / November 2021 with delivery of project by July 2023.

Transport

Programme Name: Rail Major Project Enhancements

Programme Description: Funds Pipeline of Rail Infrastructure projects to enhance Scotland's Railway.

Initial Non -Decarbonisation projects subject to STPR Phase 2 alignment (not exhaustive):

- Aberdeen to Central Belt (Journey Time Improvements).

- Access for All schemes

- Far north Line

- Freight Gauging

- Stations (New & Upgrades)

- Levenmouth – Reconnection Project

Estimated Total Investment: £453 million

Grant Funding

Various projects durations

1) development of projects portfolio continuing with East Kilbride to OBC and successfully through Investment Decision Making (IDM) in September 2021, approval via delegated authority for Dalcross station and completion of Queen Street station redevelopment.

2) Financial reviews undertaken to align project progress with budget requirements

3) Further development of collaborative working procedures (Team Scotland) delivered

4) Alignment of Rail Major Project Enhancements (non-decarb) projects with STPR 2, Phase 2 currently underway.

Transport

Programme Name: CMAL – Voted Loans – net vessel investment

Programme Description: Provides for loans to Caledonian Maritime Assets Ltd (CMAL) for procurement of vessels.

Proposals cover: Islay, Gourock-Dunoon/Kilcreggan, Small Vessel Replacement Programme, Oban-Craignure, Mallaig-Lochboisdale, Northern Isles freighters

Estimated Total Investment: £281 million

Voted Loans

2021-22 to 2025-26

Engagement between Transport Scotland and CMAL is ongoing via working groups, including CalMac and Serco NorthLink as ferry operators.

CMAL issued Invitation to Tender documents to four shipyards for production of two new major vessels for Islay routes in September 2021. Costs are expected to be around £100 million and a contract could be signed around March 2022, subject to receipt of acceptable bids.

Design consultants have been appointed to progress the Small Vessel Replacement Programme. This will result in up to 7 new vessels serving communities across Scotland within the next five years.

Consideration continues to be given to bringing additional vessels in to the CMAL fleet for deployment on the Hebrides ferry service (CHFS) and Northern Isles ferry service. (NIFS) networks through potential purchase of second hand vessels.

Transport

Programme Name: Piers and Harbours Grants

Programme Description: Provides grants to fund port operators (other than local authorities) for improvement to piers and harbours, particularly to support ferry services to and from Scotland's islands.

Includes projects such as Ardrossan, Skye Triangle and Gourock Harbour, proposed projects at Lochboisdale, Armadale and Kennacraig, and an Oban Masterplan.

Estimated Total Investment: £306 million (this figure includes Skye Triangle as stated above)

Capital Funding / Grant Funding as per GBER Article 56(b) regulations which dictate what funding intervention rate is applied.

2021-22 to 2025-26

Engagement between Transport Scotland and projects leads, such as Peel Ports / North Ayrshire Council and CMAL is ongoing via working groups, including CalMac as ferry operator.

Ardrossan – work continues on the landside infrastructure including the Passenger Access System (PAS) and Liquefied natural gas (LNG) work-streams. Discussions on commercial arrangements between Transport Scotland and Peel Ports Group continue.

Troon – fender works have commenced to support the ferry service when it operates temporarily out of the port during the Ardrossan construction period.

Gourock - Public engagement on Gourock harbour (Landside) is currently live and concludes on 1 October 2021.

Other pipeline projects are at early stages of development.

Transport

Programme Name: Highlands and Islands Airports Ltd Air Traffic Control Services

Programme Description: Programme to address current and future operational and regulatory challenges by modernising air traffic control, improving service resilience and air traffic provision through the introduction of surveillance at six HIAL airfields controlled from a Combined Surveillance Centre – with the aim of safeguarding future connectivity and lifeline services for island and remote communities.

Estimated Total Investment: £34.7 million

Capital Grant Funding

Full operational date is estimated to be June 2027.

Tender exercises for different elements of the project, including the Remote Tower solution are ongoing.

Discussions with Prospect Union continuing on the People aspect of the project, including the development of a Relocation Policy and a Commuting Policy.

Transport

Programme Name: Road Adaptations Fund

Programme Description: Trunk Road Minor Improvement Schemes to address the impacts of climate change, improve network efficiency, safety and resilience contributing to a low carbon economy.

Estimated Total Investment: £60 million

Capital funded

2022-23 to 2025-26

Budget has been allocated from 2022-23 and will be utilised accordingly in due course.

Health

Programme Name: National Treatment Centres

Programme Description: New Diagnostic and Treatment Centres to allow people to be treated more quickly for planned surgery.

The programme will encompass the provision of additional elective capacity across 9 Health Boards (on 11 sites) to cover the all-Scotland requirement out to 2035. This will require new build as well as refurbishment of existing infrastructure.

Estimated Total Investment: £570 million

Capital funded

Delivery of all units is expected to be completed in 2026.

Building work has completed on the Golden Jubilee National Hospital's Ophthalmology Unit Development and unit became operational in November 2020.

Full Business Case (FBC) for NHS Highland North of Scotland Elective Care has been approved. Enabling work commenced in July 2020 with main works commencing in January 2021.

Main construction works have started at the Golden Jubilee National Hospital's Phase 2 Elective Expansion. Construction is expected to be completed in quarter 4 of 2022-23 with operations beginning on a phased basis up to end of March 2023.

Outline Business Case (OBC) for the Short Stay Elective Centre in St John's Hospital in Livingston has been approved and NHS Lothian are in the process of developing their FBC.

Work on the FBC for the NHS Grampian Elective Care has been paused pending the outcome of a clinically led review of the scope of the project. Revised dates for the project plan will be confirmed following completion of this review.

NHS Tayside Elective Care OBC is expected to be submitted for review in April 2022.

Main works on NHS Fife Elective Centre began on 1 March 2021 and are expected to be completed by quarter 3 2022-23.

The project to increase Elective Care capacity in NHS Forth Valley is scheduled to be completed by end of 2022.

Three additional projects have been added to the overall programme:

NHS Lothian's Ophthalmology Services OBC has been approved and NHS Lothian is in the process of developing a FBC.

NHS Ayrshire and Arran is working on the development of an Initial Agreement (IA) for their National Treatment Centre project.

A National Treatment Centre project is at the early stage of planning in NHS Lanarkshire.

Health

Programme Name: eHealth

Programme Description: Development of the NearMe digital healthcare service, Attend Anywhere and various other programmes.

Estimated Total Investment: £25 million

Capital Funded

2021-22 to 2025-26

Near Me continues to provide an additional option in how people access appointments. Much of the focus is on winter plan commitments including supporting Redesign of Urgent Care. Social Care and wider rollout well underway. Follow up engagement with Boards identified to support increased use in Health.

Attend Anywhere have developed a group consultation platform within Near Me. This will soon undergo testing with clinicians and patients before broader release. This testing will commence in November 2021. Testing with Microsoft Teams is ongoing.

Social Security have planned national roll out of Near Me for child disability payments commencing end of November 2021. Adult disability payment pilot to commence in March 2022.

Schools

Programme Name: Learning Estate Investment Programme

Programme Description: The programme will benefit around 50,000 pupils across Scotland.

The programme will see more schools that are low emission, digitally enabled and better connected to their local communities

Estimated Total Investment: £2 billion of infrastructure investment will be enabled (£1 billion from the Scottish Government with rest from Local Authorities).

50/50 split between Scottish Government and local authorities

All projects will be announced and funding allocated by 2026.

The first phase of school projects to benefit from funding through the Learning Estate Investment Programme (LEIP) was announced in September 2019. A second phase was announced in December 2020. Details of the schools can be found at Learning Estate Investment Programme

The first LEIP projects started construction during the summer of 2021.

Scottish Government officials continue to work with local authorities regarding which priority projects may be suitable for Scottish Government support within future phases of the programme. Options for a third phase are being prepared and these will be considered by Ministers.

Housing

Programme Name: Affordable Housing

Programme Description: The delivery of 50,000 affordable homes over the five years of the current Parliament (2016-2021).

Working with local authorities, housing associations and private developers, we are committed to investment and ensuring best value in order to maximise the number of affordable homes that can be delivered from available resources.

Estimated Total Investment: Over £3.5 billion

Capital funding committed from Scottish Government for the five years to 2021.

Delivery was targeted for the end of the last Parliamentary period.

Over the period 1 April 2016 to 30 June 2021, a total of 42,948 affordable homes have been delivered towards the 50,000 affordable homes target. This includes 29,073 for social rent, 5,283 for affordable rent and 8,592 for affordable home ownership.

We were on track to hit our target of delivering 50,000 affordable homes over the last Parliament before the pandemic required construction to be paused followed by a phased return.

The impact of that is now being compounded by the current difficulties being faced globally, with the rising cost of materials and shortages in supplies and labour.

The delivery of the remaining homes will therefore be dependent on the speed at which homes can be completed during the continuing COVID-19 challenges and as availability of materials and skilled labour allow.

Housing

Programme Name: Affordable Housing Supply Programme

Programme Description: Delivering more affordable and social homes, helping to create great places, and continuing to ensure the right types of homes in the right places to support Local Housing Strategies and regional development priorities.

Delivery of the Housing to 2040 strategy Vision and aims.

Estimated Total Investment: £5.8 billion of which £3.44 billion is SG capital grant towards delivery of affordable homes, with the remainder being an investment contribution by delivery partners.

Capital funding committed from Scottish Government for five years to 2025-26 as well as borrowing by local authorities and registered social landlords.

Housing Capital budget, private sector investment and potentially, the Scottish National Investment Bank.

2021-22 to 2025-26

2021-2040

Once the previous 50,000 affordable homes target has been delivered we will work towards delivering 110,000 affordable homes by 2032 with 70% of these homes for social rent and 10% in remote, rural and island areas.

We are co-ordinating social and affordable housing investment with other essential infrastructure investment to increase opportunity for private investment in place initiatives that are key to business and regional growth.

We are also continuing to engage with the Scottish National Investment Bank, working closely with the housing sector to bring forward investment proposals and maximise the role the Bank can play in the delivery of the Housing to 2040 Vision.

We will continue to support the building of homes for private rent, with a focus on maximising delivery of these homes at the affordable end of market rents, working with private sector investors and partners whose business models match our ambition to improve affordability for tenants.

- Funding City Regional Deal housing activity including investing in strategic sites to deliver strong place-based investments over the next 20 years.

- Continued support for housing infrastructure investment, building on the success of the Housing Infrastructure Fund (HIF), which has invested nearly £50m to date in unlocking developments.

- Continued delivery of over £100 million of long-term loan investment by the Scottish Government into the expansion of affordable, mid-market rent (MMR) housing.

- Delivery of the National Housing Trust initiative, which has delivered over 1,700 new MMR homes across Scotland through the provision of a Scottish Government guarantee.

- Working with the Scottish National Investment Bank to seek out funding opportunities in the housing sector that align with the Banks mission and the Housing to 2040 strategy aims.

Housing

Programme Name: Housing Supply

Programme Description: The delivery of support for Help to Buy and First Home Fund

Estimated Total Investment: £532 million

Financial Transactions Capital

2021-22

The First Home Fund closed on 8 April 2021 when the £60 million annual budget was fully committed.

The main Help to Buy scheme closed in February 2021 due to budget pressures.

The Help to Buy Smaller Developers Scheme remains available but will close on 31 March 2022.

Regeneration

Programme Name: Regeneration and Place

Programme Description: Capital investment in support of Place, community led regeneration, town centres and 20-minute neighbourhoods.

Includes the Regeneration Capita Grant Fund

Estimated Total Investment: £250 million

Capital Funded

2021-22 to 2025-26

Local Authorities have received £38 million for 2021-2022 to support placed based investment in their communities.

26 Projects across Scotland have received an offer of grant through the Regeneration Capital Grant Fund for more than £24 million across 2021-22 and 2022-2023.

Regeneration

Programme Name: Clyde Gateway Regeneration Capital

Programme Description: Capital in support of Clyde Gateway's 20-year programme of regeneration.

This is attracting other inward investment and delivering a lasting legacy from the 2014 Commonwealth Games.

Estimated Total Investment: £25 million

Capital Funded

2021-22 to 2025-26

Clyde Gateway have received a grant offer of £5 million for 2021-22.

Digital

Programme Name: Reaching 100% programme (R100)

Programme Description: The delivery of 100% superfast broadband access across Scotland by the end of 2021.

Estimated Total Investment: Over £600 million has been committed for procurement phase of R100.

£600 million was initially committed to the North, Central and South lot contracts of the R100 programme (£579 million SG funding / £21 million UKG funding).

As the R100 contracts are "gap funded", the successful bidder will also contribute towards the costs for delivery.

In February 2021, UKG announced that it would invest £4.5 million in the R100 Central lot contract to flip over 5,300 properties from FTTC (fibre to the cabinet) connections to FTTP (fibre to the premises) connections).

The UKG is also investing a further £8 million in the R100 North lot contract to flip 3,600 premises from FTTC to FTTP.

Delivery of 100% superfast broadband access across Scotland by the end of 2021.

The R100 Central and South lot contracts were signed in December 2019; and work on the ground began in both areas in Summer 2020. We expect the majority of contract build to be completed by the end of 2023.

The R100 North contract was signed in December 2020 and we expect the contract build to complete in 2026-27.

Work on the ground is now underway in all three regions (North, Central and South). Survey work is also underway for the delivery of 16 new subsea cables, which will provide connectivity to 15 Scottish islands.

The North lot contract was signed on 11 December 2020 following the dismissal of a legal challenge. As was the case with the Central and South lots, BT was required to remodel their build plans to take account of changes in commercial delivery plans. This remodelled build plan was assured at the end of August 2021 with updated deployment plans now available via our online address checker.

In September 2020, we launched the Scottish Broadband Voucher Scheme (SBVS). Anyone whose home or business broadband speed is less than 30 Megabits per second (Mbps) and where there are no plans to bring superfast broadband to their address by the end of 2021, will be eligible for the scheme. The following link provides further information about the scheme: www.scotlandsuperfast.com

Digital

Programme Name: Digital Public Services Programme

Programme Description: Increased investment in developing common digital operating platforms and the transformation of key public services.

Estimated Total Investment: £110 million

Capital funding for the programme fund covers financial years 2022-23 to 2025-26.

Programmes are currently in-flight and are on target to deliver benefit realisation over the parliamentary term.

Key operating platforms, both Payments and Digital Identity, have successfully completed their Alpha phases and are currently in their Beta stage and have entered into contracts with an external supplier as delivery partner putting in place the necessary technical solution, service design and platform infrastructure.

The Cloud First Programme has successfully designed and tested a Cloud Hosting Platform and a range of supporting services allowing SG to operate and manage digital applications in a secure, cost efficient environment. The Cloud Platform has proved crucial in supporting Payments, Digital Identity and other priority initiatives. With the current SG hosting infrastructure no longer able to support the delivery of the SG's ambitions for a modern, flexible and responsive organisation, there is an urgent need to scale the Platform & Services across SG. An OBC has therefore been submitted for approval to ensure SG is able to realise benefits of Cloud hosting.

To date, there have been five complete Innovation Flows (CivTechs 1 – 5), with CivTech 5 currently in the Post-Accelerator stage. Independent evaluation has confirmed significant value for money in both economic terms and societal terms. CivTech 6 launched in June 2021, with 12 Challenges on the Accelerator Stage scheduled for completion in February 2022. The draft 2021-24 OBC for the expansion of CivTech is currently at Assurance Gateway 2, with the draft report being submitted 23 September 2021.

Working with CivTech, the AI Strategy Delivery Programme has taken forward a number of early innovation projects to deliver commitments in the strategy on transparency and accountability of public sector algorithms. The next phase of the data platforms programme is being scoped and due to be completed by end of 2021.

Energy

Programme Name: Low Carbon Infrastructure Transition Programme Successor (LCITP)

Programme Description: Programme supports acceleration of projects to develop investment grade business cases and delivery of low carbon infrastructure projects capable of deploying heat and low carbon infrastructure at scale. This includes £50 million Green Recovery Programme.

Estimated Total Investment: £405 million

Programme is capital funded by the Scottish Government

2021-22 to 2025-26

The Green Recovery: Low Carbon Energy Project Capital Funding was launched in September 2020. This invitation targeted a minimum of £50 million of support for projects that demonstrate innovative low carbon heat solutions for buildings, as well as proposals for integrated energy systems that support the ambitions for Scotland to achieve net zero emissions by 2045 and further catalyse economic recovery from the challenges imposed by the COVID-19 Pandemic.

As of September 2021, almost £11 million has been awarded to 9 zero emission heating projects.

Energy

Programme Name: Low Carbon Infrastructure Transition Programme (LCITP)

Programme Description: Programme supports the acceleration of projects to develop investment grade business cases and the delivery of low carbon infrastructure projects.

Estimated Total Investment:

  • Phase 1 (2015-2018) £76 million.
  • Phase 2 (2018-2021) £60 million

Programme is capital funded by the Scottish Government to September 2021 with support for 40% activity through the European Structural Funds.

Phase 1 – delivery of 11 low carbon infrastructure demonstrator projects by December 2018

Phase 2 – the delivery of 10 low carbon infrastructure demonstrator projects by September 2021.

LCITP has supported the co-development of over 30 proof of concept and development proposals for low carbon projects. LCITP has run a number of open funding invitations, including the Social Housing Net Zero Heat Fund, Green Recovery: Low Carbon Energy Project Development Funding, Scottish Low Carbon Heat Funding Invitation, Transformational Low Carbon Demonstrator Invitation and the Innovative Local Energy Systems Invitation.

Up to September 2020, LCITP has offered over £57 million of capital funding to 27 low carbon projects.

Energy

Programme Name: Heating in Buildings (Formally Energy Efficient Scotland Domestic programmes)

Programme Description: Investment in our domestic energy efficiency programmes and support the elimination of poor energy efficiency as a driver of fuel poverty.

Estimated Total Investment: £465 million

Capital funded, partly through Warmer Homes Scotland (WHS), partly grant to local authorities Area Based Scheme (ABS).

2021-22 to 2025-26

£50 million allocated to WHS and £64 million to ABS in 2021-22.

Energy

Programme Name: Social Housing Net Zero Heat Fund (Low Carbon Infrastructure Transition Programme)

Programme Description: Fund to accelerate the delivery of energy efficient, low and zero carbon heat provision to social housing.

Estimated Total Investment: £100 million (with an extra £10 million for Fabric First approach projects in 2021-2022 only).

Programme is being capital funded solely by the Scottish Government

2021-22 to 2025-26

The fund has awarded almost £10 million to 9 social housing projects across Scotland.

The fund reopened to invitations in August 2021 and has received 7 applications for funding. These are being assessed and projects will be notified of outcomes by October 2021.

Energy

Programme Name: Green Public Sector Estate Decarbonisation Scheme

Programme Description: Programme to support heat decarbonisation and energy efficiency across the public sector estate.

Estimated Total Investment: £95 million

Programme is being funded solely by the Scottish Government in line with recent Programme for Government commitments.

2021-22 to 2025-26

In June 2021, the programme successfully launched its first round of funding offering support to more than 30 projects across the public sector in Scotland, covering both resource and capital support.

The programme will launch further funding calls in the Autumn of 2021 to support multi-year projects and to continue to boost decarbonisation and improve energy efficiency across Scotland's public sector.

Energy

Programme Name: Heat in Buildings

Programme Description: Investment to support heat decarbonisation and energy efficiency in homes and buildings, community energy, decarbonising islands and energy.

Estimated Total Investment: £427 million

Capital – grants and loans delivered via a number of delivery partners.

2021-22 to 2025-26

Funding issued as planned via CARES (Community and Renewable Energy Scheme), SME and domestic cashback schemes and District Heating Loan Fund.

Energy

Programme Name: Clyde Mission Low Carbon Infrastructure

Programme Description: Investment in zero carbon energy infrastructure and heat networks for residential and commercial premises along the river Clyde's path.

Estimated Total Investment: £25 million

Programme is capital funded by the Scottish Government.

2021-22 to 2025-26

Work is underway to develop a scheme to distribute funds to projects that deliver a viable zero carbon heat/energy solution and can contribute to the Clyde Mission wider social and economic policy objectives. An announcement on the detail of that scheme is expected to be made later in 2021.

Energy

Programme Name: Scottish Industrial Energy Transformation Fund (SIETF)

Programme Description: Scottish administered version of IETF for the deployment of energy efficiency or decarbonisation projects for industrial manufacturing processes.

Estimated Total Investment: Up to £114 million depending on size of business to be match funded.

£34 million of SG capital committed in 2020 (as part of low-carbon funding)

2021-22 to 2025-26

First call for projects closed February 2021, resulting in eight projects receiving grant offers totalling £3.4 million (£10.9 million total project costs). Second call for projects opens October-December 2021 with view for more grant offers in early 2022.

Energy

Programme Name: Energy Transition Fund

Programme Description: This package of investment will support our energy sector and help us make significant progress on energy transition, as we move toward a net zero society by 2045.

Estimated Total Investment: £62 million

£62 million SG funding announced in June 2020.

2020-21 to 2024-25

The Energy Transition Fund has already announced funding of £26.3 million for an Energy Transition Zone, £16.6 million to Net Zero Technology Centre, £6.5 million for a Global Underwater Hub and £4.65 million to the Aberdeen Hydrogen Hub.

Energy

Programme Name: Emerging Energy Technologies Fund (EETF) – including hydrogen and CCS.

Programme Description: Support carbon capture and storage (CCS), negative emissions technologies (NETs) and hydrogen development.

Estimated Total Investment: £180 million

Scottish Government has committed £180 million as part of Climate Change Plan over 5 years.

Proposed £100 million on Hydrogen and £80 million on CCS.

Capital funding awarded through low carbon fund.

2021-22 to 2025-26

Scheme design and stakeholder engagement have commenced.

Exploring the links with other low carbon funds, including Scottish Industrial Energy Transformation Fund (SIETF), Energy Transition Fund (ETF), Low Carbon manufacturing and Low Carbon transport, this is to ensure these work seamlessly alongside each other to support the development of a Hydrogen economy and CCUS network, and do not duplicate one another.

We are considering how funds could be assembled to support big projects and entice private / commercial partnership and investment. The UKG is currently phasing funding for CCS, including for the CCS cluster in Scotland – announcement expected w/c 25 October 2021. This will influence how we will target the £80 million CCS portion of the funding.

As EETF is a capital fund it could, potentially, be supported by preliminary resource work through other funds, for FEED studies or equivalent. We aim to draw on the lessons learned from other funds, particularly LCITP.

Low Carbon Manufacturing

Programme Name: Low Carbon Manufacturing Challenge Fund (LCMCF)

Programme Description: New Challenge Fund that will support Scottish manufacturers' scope to innovate and drive the decarbonisation of manufacturing businesses.

Estimated Total Investment: £26 million

Capital Funded

2022-23 to 2025-26

Small amount of capital from 2021-22 has been used to fund a CivTech 6.0 Challenge to develop a tool to help manufacturers' baseline carbon emissions.

Working with Scottish Enterprise to design and deliver the wider LCMCF, which will be a research and development fund to help businesses introduce circularity into their products, decrease waste and reduce lifetime carbon emissions. We are seeking to launch the fund in 2021-22 with funding going out into 2022-23.

Circular Economy

Programme Name: Waste Sector

Programme Description: Investment to improve local authority recycling collection infrastructure, accelerate landfill gas capture and improve waste data through electronic waste tracking.

Estimated Total Investment: £75 million

Capital funding committed from Scottish Government for the five years from 2021-22.

2021-22 to 2025-26

The £70 million Recycling Improvement Fund was launched in March 2021, inviting all local authorities to submit expressions of interest for funding proposals.

Zero Waste Scotland is currently working with local authorities to develop detailed bids. These bids are being reviewed in line with the fund's governance arrangements before a decision is made on funding awards. The Scottish Government has worked in partnership with COSLA, SOLACE and Zero Waste Scotland to develop arrangements for the fund.

More information on the aims, scope and distribution of the fund is available at: https://www.zerowastescotland.org.uk/local-authorities/recycling-improvement-fund

Flood Management

Programme Name: Flood Risk Management

Programme Description: Additional spending on flood risk management, in support of enhanced adaptation and climate resilience as part of a green recovery.

Estimated Total Investment: £150 million

Capital funding committed from Scottish Government for the five years to 2026.

2021-22 to 2025-26

Consideration is being given to how the additional flooding money will be allocated. A joint SG/COSLA Flood Risk Management Working Group has been set up to discuss funding arrangements for flood risk management actions going forward. This group will consider and make recommendations to Ministers on the funding arrangements in late 2021 / early 2022.

Natural Capital

Programme Name: New planting and forest expansion

Programme Description: New planting and forest expansion.

Estimated Total Investment: £283 million

Capital Funded (£150 million through Low Carbon Fund)

2021-22 to 2025-26

The 'draft' Forestry and Land Scotland (FLS) Acquisition Strategy has been submitted to Ministers for approval. This sets out the principles under which FLS will use both the £30 million of SG low carbon funding and the FLS strategic funds to acquire land in order to grow Scotland's national forests and land.

To date, in 2021-22, FLS has acquired 203 ha of new land, and have a further 967 ha under offer. Total projected cost of acquiring this land is just over £6.6 million. Roughly, half of this land will be plantable for trees with the remainder being managed for habitat, ecological and/or recreational outcomes.

Stepped increases in new planting targets have been set with the aim of achieving 18,000 ha planting in 2024-25. Annual targets are as follows: 2021-22 13,500 ha, 2022-23 15,000 ha, 2023-24 16,500 ha and 2024-25 18,000 ha. Scottish Forestry remain on course to achieve this year's target. Plans to implement required infrastructure and resource for longer-term ambitions are in progress.

Natural Capital

Programme Name: Peatlands

Programme Description: Capital investment as part of our 10-year £250m commitment to restore 20,000 ha annually, and 250,000 ha by 2030.

Estimated Total Investment: £100 million

Programme currently funding full capital costs of peatland restoration projects delivered by our partners.

Looking ahead, a range of alternative funding models will be explored.

2020-21 to 2022-23

Peatland restoration continues to be progressed across Scotland through the work of our current delivery partners (NatureScot (Peatland Action), Forestry and Land Scotland, Cairngorms National Park, Loch Lomond and Trossachs National Park and Scottish Water).

Our work on peatland restoration is currently being incorporated into a new, broader Scottish Government peatland programme that includes work on peatland protection and management.

Within this new programme, we continue to work with our partners to understand and address the structural, operational and resourcing challenges around significantly upscaling rates of restoration.

Natural Capital

Programme Name: Low Carbon Vacant and Derelict Land Investment Programme

Programme Description: A programme of investment supporting reuse of vacant and derelict land as part of a fair, green recovery.

Estimated Total Investment: £50 million

Capital funded

2021-26

10 projects across Scotland have now been recommended to receive an offer of grant from the £5 million budget (2021-22). These were announced on 10 September 2021.

Applications have now also opened for the second round of funding (2022-23) and we anticipate being in a position to announce the next round of projects by March 2022.

Cities / Regions

Programme Name: Glasgow City Region Deal

Programme Description: The deal empowers Glasgow and its City Region partners to identify, manage and deliver a programme of investment to stimulate economic growth and create jobs in their area, spreading the benefits of economic growth across Glasgow and Clyde Valley, and ensuring deprived areas benefit from this growth.

Estimated Total Investment: £1.13 billion

  • Scottish Government is a full partner and investing £500 million over 20 years.
  • UK Government investing £500 million over same period and the regional partners £130 million.
  • Scottish Government is also investing £20 million in the Imaging Centre of Excellence.

Capital Funded

20 years from 2015-16 until 2034-35.

The deal, which was signed August 2014, is now well underway and the Glasgow City Region Cabinet has approved a number of projects. Project selection and approval is a matter for the Glasgow City Region Cabinet (and not Scottish Ministers).

The main span of the new pedestrian and cyclist bridge linking Sighthill with Glasgow City Centre was installed over the M8 at the end of July 2021. The bridge is expected to open to the public early 2022.

Construction work has begun on a new Greenock cruise ship visitor centre as part of a £19.2 million development in the area and is accompanied by a new 200m floating pontoon.

Cities / Regions

Programme Name: Aberdeen City Region Deal

Programme Description: The 10-year deal paves the way for investment in innovation and internationalisation as well as digital connectivity and infrastructure across the region.

Estimated Total Investment:

£826 million

  • Scottish and UK Governments have committed to investing up to £125 million each and the regional partners £576 million.
  • The Scottish Government has also committed to invest a further £254 million over the same 10-year period as the City Region Deal to deliver further economic benefits.

Capital Funded

10 years from 2016 until 2026.

The deal was signed in November 2016. The Scottish Government is working together with the UK Government and regional partners during the implementation phase to make the proposals within this deal a reality.

The Net Zero Technology Centre [formerly Oil and Gas Technology Centre] celebrated a successful rebrand launch in June 2021 and continues to operate with an effective profile, either meeting or exceeding stretched targets, building an excellent reputation in the industry for advancing the adoption of new technologies.

The Food Hub for Innovation, rebranded SeedPod – is to be located in the Sunnybrae area, collocated with the Scottish Rural College with a planning application approved in May 2021.

Work continues on the Transportation Links to the Bay of Nigg STAG Part 2 appraisal, which will inform what supporting infrastructure is necessary for the Aberdeen Harbour Expansion.

The Bio Therapeutic Hub for Innovation will be based in the Foresterhill Health Campus in Aberdeen. Construction has started and is due to complete end of 2022.

All the other elements of the deal are continuing to progress with either the development of business cases or the undertaking of further engagement to help understand the issues and identify options to enable delivery.

Cities / Regions

Programme Name: Inverness City Deal

Programme Description: The deal will support a step change in digital connectivity, digital healthcare, skills, innovation and infrastructure in the region.

Estimated Total Investment:

£315 million

  • Scottish Government has committed to investing up to £135 million in the deal, the UK Government up to £53 million, and the Council and regional partners a further £127 million over 10 years.

Capital Funded

10 years from 2016 until 2026.

The deal was signed in January 2017 and is now underway.

- Innovative Assisted living - Fit Homes (Scottish Government) - Pan-Highland project aims to construct 29 technology-enabled homes to provide independent living for elderly residents and military veterans. In addition, a further 16 homes will have technology embedded.

Construction on 11 units has commenced at Dingwall Castle Park and a further 8 units at Inverness, Stratton Farm. Both are due for completion in first quarter of 2022. Tendering is underway for 10 Units at Nairn, Cawdor Road, a further 8 units over two sites are outwith Deal funding. At Lairg, planning consent is in place for 4 units with additional sources of funding being explored. Discussions are ongoing with The Highland Council (THC) and NHS regarding 4 units at Tongue.

- Affordable Housing (Scottish Government) - First projects have been completed, delivering affordable housing, homes for social rent and a total of 91 new Mid-Market Rent (MMR) opportunities within Alness, Ardgay, Dornoch, Drumnadrochit, Fort William, Inverness, Munlochy, and Ullapool by March 2021. A further 24 units have been completed in current year at Avoch and Achintore bringing total number of units completed to 115. There are planning approvals for 282 units in total including those completed. Restrictions arising from COVID-19 outbreak limited progress on a number of projects but work has now restarted on the sites affected.

- Inverness Castle Grounds (Scottish Government / UKG) - The North Tower was opened as a viewpoint in April 2017 following completion of environmental works around the castle and repairs to the fabric of tower. The viewpoint had attracted over 57,800 visitors as of October 2020.

City Deal funds were also used to purchase nearby Bridge St. buildings with a view to expanding redevelopment of Castle, creating a more extensive and aesthetically valuable visitor attraction. The transfer of the Castle to THC has been completed and business case to take forward next phase of work is currently under development and progressing well. Tenders for main construction contract were published in May 2021 and it is anticipated a contractor will be engaged by the end of the year.

- UHI Centre for Health & Life Sciences (UKG) - A proposed new facility on Inverness Campus has twin goals to develop new treatments, services and products to improve treatments and quality of life for those living in region. Following identification of site on campus, work on site commenced in August 2021 and building is expected to be completed in September 2022.

Cities / Regions

Programme Name: Edinburgh and South East Scotland City Region Deal

Programme Description: The deal will address inclusion issues, create new economic opportunities, and is expected to provide up to 21,000 jobs.

Estimated Total Investment:

£1.3 billion

  • Scottish and UK Governments committed to investing up to £300 million each in the deal.
  • Regional partners, including six local authorities and region's universities and private sector, will contribute £730 million.

Capital Funded

15 years from 2018 until 2032.

The deal was signed in August 2018 and is now underway.

Since then, the Joint Committee have been steadily signing off business cases for projects within the deal.

Many projects, such as the Bayes Centre and those within the Integrated Regional Employment and Skills Programme, are already in operation.

Construction work is near completion for the Central Borders Innovation Park, Edinburgh Futures Institute and Edinburgh International Data Facility.

Cities / Regions

Programme Name: Stirling and Clackmannanshire City Region Deal

Programme Description: The deal will enable the city region to thrive in new and emerging sectors with a highly skilled, flexible workforce, supported by outstanding infrastructure.

Estimated Total Investment:

£214 million

  • Scottish Government and UK Government each invest £45.1 million (£43.2 million of SG investment is capital).
  • Regional Partners have committed investment of £123.8 million
  • Scottish Government also making an investment of £5 million in addition to the deal.

Capital Funded

10 years

The deal was signed on 26 February 2020.

The Scottish Government is working together with the UK Government and the regional partners towards implementation of the deal focusing on Business Case development for those projects that are expected to be first to begin delivery.

An early project for delivery is Scotland's International Environment Centre, which comprises a research and policy centre on the University of Stirling Campus and a new innovation campus located in Alloa. The FBC for the project has been approved by the Joint Committee for the Deal on 7 September 2021.

Through the Regional Active Travel improvements programme, investment will be made in projects to provide strategic linkages in key population and education centres across the region, linking the more rural communities whilst reducing carbon.

Cities / Regions

Programme Name: Tay Cities Region Deal

Programme Description: The Deal's themes reflect the Tay Cities Regional Economic Strategy and the focus on inclusion, industry and innovation as well as internationalisation and empowerment.

Estimated Total Investment:

£700 million

  • Scottish Government and UK Government will each invest £150 million (£127.4 million of Scottish Government investment is capital expenditure).
  • A potential £400 million is being leveraged as a result of deal funding.
  • Scottish Government are also making an investment of £50 million in addition to the deal.

Capital Funded

10 years

The Deal was signed on 17 December 2020.

Business cases for all projects scheduled to drawdown in year 1 (2020-21) have been approved by governments. Working with regional partners to develop business cases for remaining projects.

Worked with projects with approved business cases to highlight contributions to inclusive growth and continuing to work with regional partners maximise inclusive growth opportunities in all projects.

Cities / Regions

Programme Name: Ayrshire Growth Deal

Programme Description: The Deal's vision is to enable Ayrshire to be vibrant, outward looking, confident, attractive to investors and visitors, and for it to make a major contribution to Scotland and the wider UK's growth.

Estimated Total Investment: £251.5 million

Scottish Government & UK Government will invest £103 million each.

Regional partners will invest £45.5 million.

Capital Funded (£91.5 million)

Revenue Funded (£11.5 million)

Scottish & UK Government investment will be over the next 10 years.

Full Deal was signed in November 2020 by Scottish Government, UKG, and regional partners.

HALO project completed, set for official opening in autumn 2021.

The Scottish Government will continue to work with the partners to further develop the detail of the projects supported through the deal and to maximise inclusive growth opportunities.

Cities / Regions

Programme Name: Borderlands Growth Deal

Programme Description: The Deal's ambition is to unlock the South of Scotland and North of England's potential as an economic hub to encourage new business and job opportunities.

Estimated Total Investment:

£191 million

  • Scottish Government will invest £85 million and UK Government will invest £65 million in Scottish deal.
  • Regional partners will invest £41.2 million.

Capital Funded

Scottish Government and UK Government investment will be made over 10 years,

Priority themes and areas have been identified for Scottish Government and UKG investment. They are Enabling Infrastructure, Improving Places, Supporting Business, Innovation and Skills, and Encouraging Green Growth.

Full deal signed in March 2021.

Officials continue to work with partners on the development of business cases that will deliver economic inclusive growth across the south.

Cities / Regions

Programme Name: Moray Growth Deal

Programme Description: The Deal will help drive inclusive economic growth. It will help both retain and attract young people to live and work in area; address gender inequality in employment; and create new high quality jobs and opportunities across Moray.

Estimated Total Investment:

£65 million

  • Scottish Government and the UK Government will both invest £32.5 million each.

Capital Funded

10 years.

The Heads of Terms agreement was signed on 24 August 2020.

Officials continue to work with regional partners to further develop the detail of the projects to be supported through the deal and to maximise inclusive growth opportunities.

Cities / Regions

Programme Name: Argyll and Bute Growth Deal

Programme Description: The Deal will focus on strengthening communities and on connecting Argyll and Bute's high value business sectors to national and international business markets.

Estimated Total Investment:

£50 million

  • Scottish Government and the UK Government will invest £25 million each.

Capital Funded

10 years

The Heads of Terms agreement was signed on 11 February 2021.

The Scottish Government will continue to work with the partners to further develop the detail of the projects to be supported through the deal and to maximise inclusive growth opportunities

Cities / Regions

Programme Name: Islands Growth Deal

Programme Description: The Deal will invest in the priority themes identified by the Islands Growth Deal partners; leading the way to a low carbon future, supporting growth and future industries, and creating thriving, sustainable communities.

Estimated Total Investment:

£100 million

  • Scottish Government and the UK Government will invest £50 million each.

Mainly Capital Funded but with some Revenue not yet agreed.

10 years

The Heads of Terms agreement was signed on 17 March 2021.

The Scottish Government will continue to work with the partners to further develop the detail of the projects to be supported through the deal and to maximise inclusive growth opportunities

Cities / Regions

Programme Name: Falkirk Growth Deal

Programme Description: The Deal will invest in the priority themes identified by the Falkirk Growth Deal partners; Innovative Industry and Great Places.

Estimated Total Investment:

£90 million

  • Scottish Government will invest £50 million and UK Government will invest £40 million.

Capital Funded

10 years

Quantum agreed in July 2020.

The Scottish Government will continue to work with the partners to agree a package of projects to be supported through the deal and to maximise inclusive growth opportunities.

Inclusion and Growth

Programme Name: Stornoway Growth Accelerator

Programme Description: Growth Accelerator payments to the Stornoway Port Authority will help underpin a game-changing infrastructure project. This will secure the sustainable future of the Hebrides by building the enabling infrastructure within Arnish Low Carbon & Renewables Enterprise Area, to provide catalyst for significant further economic and environmental development.

Estimated Total Investment: £49 million

The Scottish Government investment is £33.7 million of revenue funded Growth Accelerator payments over 25 years, subject to achievement of agreed outcomes.

Timetable delayed due to inflated COVID related construction costs.

Initial construction work unlikely to commence before spring 2022 with opening envisaged in spring / summer 2024.

Initial tender process resulted in higher than expected bids due to COVID related inflationary impact on costs. Project specification undergoing adjustment to stay within budget before agreeing tender.

Inclusion and Growth

Programme Name: Agricultural Support Programme

Programme Description: Agricultural funding to support legacy payments under European Commission Scottish Rural Development Programme (SRDP) schemes, such as the Agri-Environment Climate Scheme (AECS 2021).

Future funding for low carbon activities, environmental measures and sustainable agricultural support is being developed following recommendations from industry farmer-led groups through Agriculture Reform Implementation Oversight Board

Estimated Total Investment: £220 million

HM Treasury ring fenced funding. However no guarantee beyond the end of the UK parliament sitting

2021-22 to 2024-25

Development of a coherent programme structure to deliver on, monitor and evaluate against both EU and domestic regulations, legally committed targets and the National Performance Framework.

Inclusion and Growth

Programme Name: National Islands Plan

Programme Description: Investment will support delivery of the Scottish Government's National Islands Plan across a range of areas, including tourism, infrastructure, innovation, energy transition and skills.

Estimated Total Investment: £30 million

Capital Funded

2021-22 to 2025-26

£9.5 million has been allocated to this programme in the current 2021-22 financial year through three key funding streams:

1. The £2 million Island Communities Fund closed on 16 July 2021 and is designed to support the grassroots delivery of the National Islands Plan through capital investment for community led projects.

2. The £1.3 million Healthy Islands Fund, which includes £1.05 million of capital investment, was launched on 23 August 2021 and is a new community challenge fund, which will support community-led projects to influence healthier lifestyles on the islands.

3. The £6.2 million Infrastructure Investment Fund has been created to sustain, enhance and develop transformational and critical infrastructure projects based on local priorities whilst supporting delivery of the National Islands Plan.

Boosting Competitiveness

Programme Name: National Manufacturing Institute Scotland (NMIS)

Programme Description: Funding to progress the new National Manufacturing

Institute Scotland (NMIS) with aim to develop and enhance skills, accelerate innovation and improve productivity.

Also supports delivery of Advancing Manufacturing Challenge Fund to spread reach and benefits of advanced manufacturing.

Estimated Total Investment: £75 million

Capital Funded

End of 2022-23

Construction on the NMIS HQ is progressing on time, and is expected to open in Autumn 2022.

NMIS is delivering for the manufacturing sector now: through the Lightweight Manufacturing Centre, Manufacturing Skills Academy and SME engagement team -and through their partnership with Boeing's new £12 million R&D facility which was officially opened on 5 October 2021.

The NMIS Board and Executive team are now in place and are responsible for day-to-day governance.

Boosting Competitiveness

Programme Name: Cairngorm Mountain

Programme Description: Investment in resort to support recovery of tourism sector in Scotland, stabilise operations and enhance visitor experiences. Re-instatement of funicular including strengthening the structure, building improvements, electrification of snow cannons, existing tow infrastructure, paths and car parking

Estimated Total Investment: £21 million

Capital Funded

£10 million provided by the Scottish Government with the remainder funded from Highlands and Islands Enterprise, including £8.5 million from the proceeds of sale of the Centre for Health Sciences.

2020-21 to 2022-23

Work commenced in late 2020, and restarted in April 2021 following a break for the winter. Completion was initially forecast for late 2021 but due to technical challenges, it is now expected in the second half of 2022.

Planning / Land Reform

Programme Name: Digital Planning

Programme Description: Development of a new, open-access, digital planning system to attract future investment, increase community participation and support place-making in Scotland

Estimated Total Investment: £35 million

Capital Funded

2021-2026

The 5-year programme was launched in March 2021.

Programme initiation phase is complete with first programme board held in July 2021 and Senior Responsible Owner formally appointed. Programme delivery commenced with 7 key immediate priorities including procurement activity for smart planning applications, payment and the digital skills programme. In addition, the development of the technical foundations are underway.

Planning / Land Reform

Programme Name: Land Reform

Programme Description: Capital funding for the Scottish Land Fund (at £8 million per year) and costs for building new Register of Persons Holding a Controlled Interest in Land (£3 million).

Estimated Total Investment: £43 million

Capital Funded

2021-2026

The Register of Persons Holding a Controlled Interest in Land (RCI) is being built by Registers of Scotland and is on track to become operational on 1 April 2022.

In addition, we are committed to doubling the Scottish Land Fund over the course of this Parliamentary session. We are advising a stepwise approach to the increase as part of the current spending review process.

Water

Programme Name: Scottish Water Investment Programme

Programme Description: For each regulatory period, Scottish Water is directed by Ministers to deliver improvements to customer service, drinking water and environment. During period 2021-27, focus will be on maintaining high quality customer service, replacing aging infrastructure and making progress towards achieving net-zero emissions by 2040.

Estimated Total Investment: £4.5 billion

Scottish Water's investment programme is financed from charges from customers and borrowing from the Scottish Government.

Scottish Water will invest £4.5 billion during period 2021-27. This contributes significantly to economic growth and supports an estimated 5,000 jobs directly in civil engineering, construction and design sectors (c20 per cent of market in these sectors in Scotland).

Progress is reported on by the Delivery Assurance Group. It produces quarterly reports which are published at https://beta.gov.scot/groups/output-monitoring-group/

Progress as shown in report for Quarter 4 2020-21, shows that delivery has been significantly impacted by COVID-19, increasing timescales and costs to deliver investment. Despite these challenges, the vast majority of projects have been delivered on or ahead of target.

Scottish Water continues to review the impact of the COVID -19 pandemic on its investment programme.

Justice

Programme Name: Emergency Services Mobile Communications Programme (ESMCP)

Programme Description: Home Office led Programme that provides a new critical communications platform that also provides mobile data.

Estimated Total Investment: £9 billion approximately. (UK-wide)

The Programme is co-funded between the Home Office, Scottish Government, Welsh Government and Department of Health.

Started in 2016 with national transition to be completed by December 2026 *.

* ESMCP Programme Plan is complex and date reflects when current system, Airwave is scheduled to be switched off.

The Scottish Government continue to work collaboratively with the Home Office and our three emergency services (Police, Fire & Ambulance) in Scotland to assess and assure ESMCP's technical capability, affordability and the wider community benefits it will offer.

The new Full Business Case was approved by the Boards in July 2021.

Justice

Programme Name: Transforming Scotland's care of women in custody

Programme Description: Programme of work to create a new model of custody to transform the care of women in custody.

It involves building facilities in form of a new National Facility and initially two Community Custody Units (CCU) with the development a gender specific trauma informed approach to managing women in custody.

Estimated Total Investment:

National Facility for Women Offenders

£74 million

  • Dundee CCU £11.6 million
  • Glasgow CCU £12.6 million

Capital Funded

The construction of the Women's National Facility will be complete in summer 2022 with an estimated operational date of autumn 2022.

The construction of the two CCUs anticipated to be complete by spring / summer 2022

Work to build a new 80 place national facility for women in custody and 24-place assessment centre at existing site of HMP Cornton Vale is progressing. Contract was signed in December 2019 with construction commencing on site in February 2020. Work was suspended in March 2020 in line with COVID-19 restrictions and recommenced in June. Further delays have been experienced due to supply issues within the construction sector.

Contracts for construction of both Community Custody Units in Dundee and Glasgow were signed in January 2020. Due to COVID-19 lockdown, construction was delayed to October and November 2020 and further delays have been experienced during construction due to supply issues within the construction sector.

Contact

Email: Stuart.Mckeown@gov.scot

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