Publication - Corporate report

Scottish Budget 2019-2020

Published: 12 Dec 2018
Directorate:
Financial Management Directorate
Part of:
Economy, Scottish Budget
ISBN:
9781787813960

The Scottish Government's proposed spending and tax plans for 2019 to 2020.

241 page PDF

5.1 MB

241 page PDF

5.1 MB

Contents
Scottish Budget 2019-2020
Chapter 11 - Environment, Climate Change and Land Reform

241 page PDF

5.1 MB

Chapter 11 - Environment, Climate Change and Land Reform

Portfolio Responsibilities

The Environment, Climate Change and Land Reform portfolio is charged with protecting and enhancing our natural environment and resources and leading action to meet the many challenges of climate change.

The overarching aim is to protect and promote Scotland's environment and to build a strong and sustainable low carbon economy through:

  • tackling climate change;
  • protecting our iconic landscapes;
  • investing in biodiversity and natural capital;
  • improving the quality of our air, land, seas and fresh water;
  • empowering communities and improving the way land is owned, used and managed; and
  • investing in the research base.

Portfolio Priorities

High quality natural assets – like our water, air, soils and nature – are the cornerstones of our economy, culture and quality of life. We will continue to ensure these precious assets are protected and enhanced.

Taking advantage of the benefits of the circular economy, we are designing a deposit return scheme for drinks containers and will consult on how we can go further to improve the use and reuse of other materials. This will help our world-leading action on climate change.

The transition to a low carbon society is an essential investment for the future welfare of the people of Scotland – our economy, our environment and for those generations yet to be born. We lead by example with our ambitious statutory targets, strong progress to date and commitment to increasing our ambition in response to the Paris Agreement.

Action across the portfolio contributes to the National Outcome on valuing, enjoying, protecting and enhancing our environment and supports a number of other National Outcomes. The transition to a low carbon economy is at the heart of our economic strategy and the steps we are taking to build a circular economy ensure we have a globally competitive, entrepreneurial, inclusive and sustainable economy. Scotland's natural environment is a valuable health-promoting asset, with investment in our green and blue infrastructure encouraging a healthier and more active Scotland.

The portfolio is heavily impacted by EU exit, with essential funding, labour, scientific expertise and around 80 per cent of our environmental legislation coming from the EU. Preparations to exit the EU, alongside maintenance and enhancement of environmental standards in Scotland, will therefore continue to be priorities for this portfolio.

Research, Analysis and Other priorities

In 2019-20 we will:

  • support the fourth year of the 2016-21 strategic research programme to drive research, development and innovation and support the Economy National Outcome;
  • continue to seek efficiencies, impact and leverage from the research we fund; and
  • continue to support the work of the Royal Botanic Garden Edinburgh.

Marine priorities

In 2019-20 we will:

  • continue to safeguard and monitor marine and fisheries activity in Scotland's seas, coasts, rivers and ports to ensure that national and international regulations are enforced to protect the health of fish stocks and the marine and freshwater environment;
  • consult on a new Sectoral Marine Plan, identifying future locations for large-scale offshore wind developments and support research that will help address challenges with the sustainability of offshore renewables in line with the National Marine Plan's commitments;
  • commence implementation of legislation introduced in 2018 on the management of the Scottish Crown Estate, and progress longer-term reforms flowing from devolution of the Scottish Crown Estate;
  • take forward structural changes to help improve the management of wild salmon and freshwater fisheries and develop a salmon pressures mapping tool to provide an improved evidence base for addressing the multiple pressures impacting on wild Atlantic salmon;
  • take forward, with the aquaculture sector, the farmed fish health framework to enable sustainable growth in the sector while minimising environmental impact;
  • continue to take action to safeguard our marine biodiversity, species and habitats, including consulting on proposals to create four new Marine Protected Areas, creation of a national deep-sea marine reserve and identifying actions to address the significant declines in seabird populations; and
  • continue to support efforts to reduce, reuse and recycle waste to minimise its impact on the marine environment, including working with the fishing sector and coastal communities on the issue of fishing litter and lost gear.

Environmental Services

In 2019-20 we will:

  • develop an action plan to promote the economic and social benefits of flood-resilient properties and work with partners to reduce flood risk across Scotland by delivering actions in the Flood Risk Management Strategies and Local Plans;
  • continue investment to deliver River Basin Management Plans; delivering improvements to the water environment; and contributing to local economies and communities;
  • undertake a review of the Cleaner Air for Scotland strategy to deliver improvements in air quality;
  • continue to support Scottish Natural Heritage (SNH), Scottish Environment Protection Agency (SEPA), our National Parks and the Central Scotland Green Network in their work to protect and enhance our world-class natural environment, to support inclusive and sustainable economic growth, and to promote the enjoyment of Scotland's environment and unique natural heritage;
  • continue the transition to a circular economy, cutting waste and carbon emissions and opening up new economic opportunities which will support the Economy National Outcome;
  • legislate for an ambitious deposit return scheme that will work well for everyone in Scotland by reducing litter and making high quality recycled materials available to the Scottish economy;
  • ban the manufacture and sale of plastic-stemmed cotton buds and consult on what additional measures should be considered to improve the use and reuse of other materials; and
  • publish an environment strategy to help guide future activity across Scotland's existing environment policies, addressing biodiversity, land use, water, air, seas, climate change, the circular economy and our connection with nature.

Climate Change priorities

In 2019-20 we will:

  • finalise passage through Parliament of our Climate Change Bill, paving the way for Scotland to be carbon neutral by 2050;
  • continue our work to ensure that Scotland is climate-ready and publish our Second Climate Change Adaptation Programme;
  • monitor progress against the commitments made in the Climate Change Plan, including identifying research gaps and where additional policy action is needed;
  • continue to support decarbonisation in the public sector and to engage with business and industry on the low carbon transition;
  • continue to support the Just Transition Commission in its role to advise Ministers on a fair transition to a low carbon Scotland and contributing to the Economy National Outcome;
  • continue to promote increased global ambition on climate change;
  • help individuals to understand the actions they can take to enable Scotland to transition to a low carbon society;
  • help tackle the effects of climate change in the poorest, most vulnerable countries through our Climate Justice Fund and making a positive contribution to the International National Outcome;
  • continue to support the Climate Challenge Fund, ensuring it is robust, delivers value for money and helps communities both to reduce their carbon emissions and to achieve a range of social and health-related benefits while contributing to the Economy National Outcome; and
  • seek to ensure that EU exit does not adversely impact our policy goals and objectives for climate change.

Scottish Water priorities

In 2019-20 we will:

  • support the £3.6 billion 2015-21 Scottish Water investment programme: the provision of water and wastewater services is a key enabler of economic growth as well as fundamental to sustaining good health;
  • invest in Glasgow's sewerage and surface water management infrastructure;
  • increase resilience and improved water quality through major trunk main replacements including for Ayrshire;
  • enhance resilience for customers in Edinburgh, Lanarkshire, Scottish Borders, and West Lothian; and

Spending Plans

Table 11.01: Environment, Climate Change and Land Reform Spending Plans (Level 2)

Level 2 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Research Analysis and Other 64.3 65.4 66.6
Marine 52.3 52.1 64.7
Environmental Services 143.7 150.6 151.2
Climate Change 19.8 21.9 22.7
Scottish Water 26.9 115.5 121.4
Total ECCLR 307.0 405.5 426.6
of which:      
Total Fiscal Resource 150.9 153.6 168.5
of which Operating Costs* 63.3
Non-cash 13.3 12.0 13.1
Capital 142.8 239.9 245.0
Financial Transactions
UK Funded AME

* In 2019-20, there is a change to the way that Scottish Government staffing budgets are presented and total operating costs are now included within portfolio budgets. This is set out in more detail in the Annex on operating costs.

Presentational Adjustments for Scottish Parliament Approval

Level 2 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Royal Botanic Garden Edinburgh (NDPB Non-cash) (1.8) (2.2) (2.4)
National Park Authorities (NDPB Non-cash) (0.7) (0.7) (0.9)
SEPA (NDPB Non-cash) (3.1) (2.1) (2.7)
SNH (NDPB Non-cash) (1.8) (1.9) (1.9)
Scottish Water loan repayments not included in Scottish Parliamentary budgets 46.7 43.0 37.6
Total ECCLR 346.3 441.6 456.3

Total Limit on Income (accruing resources)

500.0

What the Research, Analysis and Other budget does

The Research, Analysis and Other budget funds a portfolio of strategic research, knowledge exchange and expert advice in support of Scottish Government policies on a wide range of rural and agricultural topics, including the natural environment, crop and livestock sciences, animal welfare, and the rural economy.

Table 11.02: Research, Analysis and Other Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Strategic Policy, Research and Sponsorship 3.5 3.0 3.8
Economic and Other Surveys 1.4 1.4 1.4
Programmes of Research 48.1 47.7 47.7
Royal Botanic Garden, Edinburgh 11.3 13.3 13.7
Total Research, Analysis and Other 64.3 65.4 66.6
of which:      
Fiscal Resource 53.2 51.3 50.7
Non-cash 2.2 2.6 2.8
Capital 8.9 11.5 13.1
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 11.01.

What the Marine budget does

The Marine budget supports the sustainable use of Scotland's marine and freshwater environment. Marine Scotland has the responsibility for the marine planning of Scotland's seas and licensing of activities in the marine environment – crucially marine renewables, sea fisheries, aquaculture, recreational fisheries and the evidence base required to support these sectors.

Table 11.03: Marine Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Marine Scotland 52.3 52.1 64.7
Total Marine 52.3 52.1 64.7
of which:      
Fiscal Resource 46.0 45.2 58.9
Non-cash 5.5 4.7 4.8
Capital 0.8 2.2 1.0
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 11.01.

What the Environmental Services budget does

Provides funding for partners such as Zero Waste Scotland to help support the transition towards a more resource-efficient, circular economy. Design and implementation work for the deposit return scheme will be a key priority for 2019-20.

The budget continues to support SEPA, SNH, our National Parks and the Central Scotland Green Network in their work to protect and enhance our world-class natural environment, to support inclusive and sustainable economic growth, and to promote the enjoyment of Scotland's environment and unique natural heritage.

Supports work with our key delivery partners to meet our European and other international obligations and targets for biodiversity.

Continues to manage invasive and non-native species and combat wildlife crime, addressing especially the consequences of irresponsible behaviour associated with raptor persecution.

Supports community ownership, including through the Scottish Land Fund and the wider land reform agenda, and continued support for the Scottish Land Commission which contributes to the Communities National Outcome.

Table 11.04: Environmental Services Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
National Parks 12.4 12.9 13.4
Natural Assets and Flooding 11.1 14.5 14.7
Natural Resources 4.0 4.1 4.6
Land Reform 13.4 17.1 17.1
Scottish Environment Protection Agency 35.9 35.0 34.4
Scottish Natural Heritage 46.4 46.5 46.5
Zero Waste 20.5 20.5 20.5
Total Environmental Services 143.7 150.6 151.2
of which:      
Fiscal Resource 125.0 129.7 129.8
Non-cash 5.6 4.7 5.5
Capital 13.1 16.2 15.9
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 11.01.

What the Climate Change budget does

The Climate Change budget and Sustainable Action Fund support the portfolio's climate change work, including adaptation and mitigation policy, while significant budgets elsewhere across government also support the delivery of our climate change ambitions. In addition, the budget provides resources for the Land Managers Renewables Fund.

Table 11.05: Climate Change Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Climate Change – Policy Dev and Imp 1.1 1.1 1.1
Land Managers Renewables Fund 2.0 2.0 2.0
Sustainable Action Fund 16.7 18.8 19.6
Total 19.8 21.9 22.7
of which:      
Fiscal Resource 19.8 21.9 22.7
Non-cash
Capital
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 11.01.

What the Scottish Water budget does

The Scottish Water budget supports the consistent and critical programme of investment by Scottish Water of around £3.6 billion over the 2015-21 regulatory period. Projects are delivered in every part of the country supporting sustainable economic growth, providing water and waste water services for new housing and businesses as well as continuing to improve the environment, drinking water quality and customer service standards for all customers.

This period continues to see a major emphasis on investment in Glasgow to modernise the sewerage network. Investment has been made in addressing surface water management issues in Glasgow and we are now looking forward and planning for potential investment to tackle surface water issues in Edinburgh. We will continue making lending available to support this vital investment programme.

The budget also helps to grow Scotland's role and increase the benefit we can gain from the water economy both domestically and internationally through the Hydro Nation programme.

The budget helps to support the 3.6 per cent of Scotland's population which is reliant on private water supply, primarily through the provision of improvement grants. The budget also includes funding for the Drinking Water Quality Regulator for Scotland, for costs not directly recovered from Scottish Water.

Table 11.06: Scottish Water Spending Plans (Level 3)

Level 3 2017-18
Budget
£m
2018-19
Budget
£m
2019-20
Budget
£m
Interest on Voted Loans (100.5) (100.5) (100.5)
Voted Loans 120.0 210.0 215.0
Hydro Nation 4.0 4.0 4.7
Exemption Scheme 1.0
Drinking Water Quality Regulator 0.3 0.3 0.5
Private Water 2.1 1.7 1.7
Total Scottish Water 26.9 115.5 121.4
of which:      
Fiscal Resource (93.1) (94.5) (93.6)
Non-cash
Capital 120.0 210.0 215.0
Financial Transactions
UK Funded AME

See footnote on operating costs in Table 11.01.


Contact

Email: Finance.co-ordination@gov.scot