HRH Duke of Edinburgh, 10 June 1921 to 9 April 2021 Read more

Publication - Corporate report

Scottish Budget 2021 to 2022

Published: 28 Jan 2021
Directorate:
Budget and Public Spending Directorate
Part of:
Money and tax, Scottish Budget
ISBN:
9781800045507

The Scottish Budget sets out the Scottish Government’s proposed spending and tax plans for 2021 to 2022, as presented to the Scottish Parliament.

189 page PDF

2.0 MB

189 page PDF

2.0 MB

Contents
Scottish Budget 2021 to 2022
Annex H Summary of Carbon Assessment

189 page PDF

2.0 MB

Annex H Summary of Carbon Assessment

The Scottish Government has committed, over the course of this current Parliament, to deliver year-on-year increases in the percentage of the capital budget allocated to low carbon investments. This commitment is met again in Budget 2021-22.

Taxonomy Assessment of the Capital Budget

The Scottish Government has used low, neutral and high carbon categories (known as a taxonomy approach), as shown in the table below, to report on this assessment to Parliament. The categorisation was developed and proposed by the Low Carbon Infrastructure Taskforce in 2015.[1]

Category: Low Carbon

Description: Seen as necessary to the low carbon transition

Examples:

  • Transport - bus, rail and ferry
  • Energy - all renewable generation and electricity transmission and distribution
  • Rural affairs and the environment - waste
  • Housing - energy efficiency programmes

Category: Neutral

Description: Do not represent substantial carbon efficiency gains in their own right but are consistent with low carbon ambitions

Examples:

  • Rural affairs and the environment - all non-waste
  • Housing - all non-energy efficiency
  • Water, Digital, Health, Schools, Justice
  • Culture and heritage
  • Regeneration

Category: High Carbon

Description: Relatively carbon intensive

Examples:

  • Transport - roads and airports
  • Energy - fossil fuel generation

Each year, the Scottish Government publishes the percentage of each category of investment as a share of the total budget. In line with previous years, Local Government spending lines are excluded from the measure as we do not hold specific information on low/neutral/high carbon spend made by local authorities. The total also considers net Financial Transactions funding only.

The following table provides the percentage uplift in low carbon capital investment compared to investment in Budget 2020-21. The detailed table in this annex sets out a line-by-line breakdown of how these percentages are calculated. To show like for like comparison between financial years, each budget line is taken from that year's Budget at introduction:

Low Neutral High
20/21 34.9% 56.9% 8.2%
21/22 36.9% 54.6% 8.5%

Key Changes

The welcome increase in the percentage of low carbon investment has arisen from the commitment of the Scottish Government to a £2 billion Low Carbon Fund across the five financial years of the next Parliamentary term. In the first year £165 million extra funding has been committed, on top of continuing the approaching £1.8 billion underlying investment.

The percentage share of high carbon investment has increased a little. This is a direct consequence of accepting the Infrastructure Commission for Scotland recommendation that much greater investment is required in ongoing maintenance.

In 2021-22, investment in maintaining our existing trunk road and bridge network has been boosted, helping to address a backlog. Additionally projects, such as improving the air traffic control system in Highlands and Islands Airports Limited (HIAL), also count as high carbon. HIAL helps preserve vital, life-line communications across our dispersed highlands and islands communities.

Next Steps

In passing the 2019 Climate Change (Emissions Reduction) Act in Scotland, the Parliament agreed that new ways to assess the contribution made by infrastructure investment to the emissions targets should be explored. In the draft Infrastructure Investment Plan, the Scottish Government set out a planned approach to developing a new methodology, acknowledging that this would take time.

The Scottish Government will take this forward in conjunction with the Joint Review of Budget. Developing this new approach will form part of the five year implementation plan for our decision-making framework set out in the forthcoming Infrastructure Investment Plan. This will also support the next Climate Change Plan.

Table H.01: Detailed Breakdown of Carbon Assessment (£m)
Portfolio Budget Line (Level 4) 20/21 21/22 20/21 21/22
CDEL FTs CDEL FTs Low Neutral High Low Neutral High
CLG Building Standards - - 13.0 - - - - - 13.0 -
CLG Planning 2.0 - 5.0 - - 2.0 - - 5.0 -
CLG Third Sector - 2.0 - 3.5 - 2.0 - - 3.5 -
CLG Connected Communities - - 0.3 - - - - - 0.3 -
CLG Housing Supply and Infrastructure 615.0 - 575.4 - - 615.0 - - 575.4 -
CLG Housing Supply - FTs (Expenditure) - 346.5 - 142.0 - 346.5 - - 142.0 -
CLG Housing Supply - FTs (Income) - (50.0) - (81.0) - (50.0) - - (81.0) -
CLG Income (28.5) - (20.4) - - (28.5) - - (20.4) -
CLG Fuel Poverty/Energy Efficiency 82.0 - 94.0 - 82.0 - - 94.0 - -
CLG Fuel Poverty/Energy Efficiency FTs (Expenditure) - 40.0 - 40.0 40.0 - - 40.0 - -
CLG Fuel Poverty/Energy Efficiency FTs (Income) - - - (4.5) - - - (4.5) - -
CLG Housing Support and Homelessness 10.0 - 14.3 - - 10.0 - - 14.3 -
CLG Regeneration Programmes 30.0 - 64.3 - - 30.0 - 5.0 59.3 -
CLG Scottish Housing Regulator - - 0.2 - - - - - 0.2 -
CLG - Total 710.5 338.5 746.0 100.0 122.0 927.0 - 134.5 711.5 -
LG General Capital Grant 467.9 - 477.9 - - - - - - -
LG Specific Capital Grant 295.1 - 139.1 - - - - - - -
LG - Total 763.0 - 617.0 - - - - - - -
ECCLR Programmes of Research - Capital 31.3 - 32.2 - - 31.3 - - 32.2 -
ECCLR RBGE Capital 2.8 - 18.4 - - 2.8 - 15.0 3.4 -
ECCLR Marine Scotland 3.0 - 7.7 - - 3.0 - - 7.7 -
ECCLR LL&TT NPA Capital 1.2 - 1.7 - - 1.2 - - 1.7 -
ECCLR Cairngorms National Park Authority Capital 0.2 - 0.6 - - 0.2 - - 0.6 -
ECCLR Air Quality Capital Grant 1.0 - 1.0 - - 1.0 - - 1.0 -
ECCLR Natural Resources 2.0 - 2.0 (0.1) - 2.0 - - 1.9 -
ECCLR Peatlands - - 18.7 - - - - 18.7 - -
ECCLR SEPA Capital Expenditure 2.0 - 6.2 - - 2.0 - - 6.2 -
ECCLR SNH Capital 1.0 - 2.5 - - 1.0 - - 2.5 -
ECCLR Zero Waste - - 17.3 - - - - 17.3 - -
ECCLR Zero Waste - FTs (Income) - (4.0) - (0.5) - (4.0) - - (0.5) -
ECCLR Land Reform 10.5 - 10.6 - - 10.5 - - 10.6 -
ECCLR Sustainable Action Fund 4.0 - 4.0 - - 4.0 - - 4.0 -
ECCLR Voted Loans 215.0 - 180.2 - - 215.0 - - 180.2 -
ECCLR - Total 274.0 (4.0) 303.0 (0.6) - 270.0 - 51.0 251.4 -
EFWC Scottish Enterprise (Capital) 42.0 - 72.2 - - 42.0 - 8.4 63.8 -
EFWC Scottish Enterprise FTs (Expenditure) - 48.5 - 27.3 - 48.5 - - 27.3 -
EFWC Scottish Enterprise FTs (Income) - (9.9) - (27.3) - (9.9) - - (27.3) -
EFWC Enterprise Zones 23.7 - 35.4 - - 23.7 - - 35.4 -
EFWC Low Carbon Economy - - 1.7 - - - - 1.7 - -
EFWC Innovation and Industries 15.0 - 3.0 - - 15.0 - - 3.0 -
EFWC Scottish National Investment Bank FTs (Expenditure) - 220.0 - 204.0 - 220.0 - - 204.0 -
EFWC Scottish National Investment Bank FTs (Income) - - - (4.0) - - - - (4.0) -
EFWC Other Support FTs (Expenditure) - 50.0 - 13.0 - 50.0 - - 13.0 -
EFWC Other Support FTs (Income) - (10.0) - (13.0) - (10.0) - - (13.0) -
EFWC Accountant in Bankruptcy Capital 0.8 - 1.1 - - 0.8 - - 1.1 -
EFWC Cultural Project FTs (Expenditure) - 1.5 - - - 1.5 - - - -
EFWC Cultural Project FTs (Income) - (0.4) - - - (0.4) - - - -
EFWC National Museum of Scotland Capital 2.0 - 1.7 - - 2.0 - - 1.7 -
EFWC National Galleries of Scotland Capital 5.2 - 4.2 - - 5.2 - - 4.2 -
EFWC National Library of Scotland Capital 1.8 - 1.8 - - 1.8 - - 1.8 -
EFWC Non-National Museums 0.3 - 0.3 - - 0.3 - - 0.3 -
EFWC Other Cultural Capital 3.7 - 0.3 - - 3.7 - - 0.3 -
EFWC HES Direct Capital 6.0 - 6.0 - - 6.0 - - 6.0 -
EFWC Capital Expenditure 3.0 - 3.0 - - 3.0 - - 3.0 -
EFWC - Total 103.5 299.7 130.6 200.0 - 403.1 - 10.1 320.5 -
ES Other 2.8 - 2.2 - - 2.8 - - 2.2 -
ES Gaelic Indirect Capital 3.0 - 3.0 - - 3.0 - - 3.0 -
ES Scottish Qualifications Authority - Capital 2.5 - 2.5 - - 2.5 - - 2.5 -
ES Jordanhill School Indirect Capital 0.2 - 0.2 - - 0.2 - - 0.2 -
ES Grant Aided Special Schools Indirect Capital 0.2 - 0.2 - - 0.2 - - 0.2 -
ES SCRA - Indirect Capital 1.4 - 1.9 - - 1.4 - - 1.9 -
ES Children's Hearings Scotland (CHS) - Indirect Capital - - 0.4 - - - - - 0.4 -
ES Disclosure Scotland Operational Costs 5.6 - 5.6 - - 5.6 - - 5.6 -
ES College Capital Expenditure 37.4 - 33.7 - - 37.4 - - 33.7 -
ES College Capital Receipts (1.7) - - - - (1.7) - - - -
ES Higher Education Capital 342.2 - 346.7 - - 342.2 - - 346.7 -
ES Higher Education FTs (Expenditure) - 61.0 - 30.5 30.5 30.5 - 30.5 - -
ES Higher Education FTs (Income) - (6.0) - (8.4) (3.0) (3.0) - (8.4) - -
ES Student Awards Agency for Scotland (SAAS) - Operating Costs - Capital 1.9 - 1.6 - - 1.9 - - 1.6 -
ES - Total 395.5 55.0 398.0 22.1 27.5 423.0 - 22.1 398.0 -
Finance Digital Strategy - - 3.3 - - - - - 3.3 -
Finance Digital Growth Fund FTs (Expenditure) - 12.0 - 3.0 - 12.0 - - 3.0 -
Finance Digital Growth Fund FTs (Income) - (0.4) - (1.2) - (0.4) - - (1.2) -
Finance Capital/IT provision 1.8 - 2.2 - - 1.8 - - 2.2 -
Finance Capital/IT provision 0.5 - 0.5 - - 0.5 - - 0.5 -
Finance Scottish Government Capital Projects 17.2 - 15.0 - - 17.2 - - 15.0 -
Finance Finance - FTs (Expenditure) - - - 1.5 - - - - 1.5 -
Finance Capital/IT provision 4.0 - 3.0 - - 4.0 - - 3.0 -
Finance - Total 23.5 11.6 24.0 3.3 - 35.1 - - 27.3 -
HS NHS Territorial and National Boards Capital Investment 448.0 - 549.0 - - 448.0 - - 549.0 -
HS Health FTs (Expenditure) - 10.0 - - - 10.0 - - - -
HS Health Capital Receipts (20.0) - (20.0) - - (20.0) - - (20.0) -
HS - Total 428.0 10.0 529.0 - - 438.0 - - 529.0 -
Justice Administration 0.1 - 0.1 - - 0.1 - - 0.1 -
Justice Police Reform and Change 4.6 - 4.6 - - 4.6 - - 4.6 -
Justice Capital Expenditure 67.8 - 72.8 - - 67.8 - - 72.8 -
Justice Support for Victims and Witnesses 2.0 - - - - 2.0 - - - -
Justice Criminal Justice Digital Reform 3.0 - 3.0 - - 3.0 - - 3.0 -
Justice Capital 40.0 - 45.5 - 5.0 35.0 - 10.0 35.5 -
Justice Capital 32.5 - 32.5 - - 32.5 - - 32.5 -
Justice Capital 8.0 - 8.0 - - 8.0 - - 8.0 -
Justice - Total 158.0 - 166.5 - 5.0 153.0 - 10.0 156.5 -
RET Agricultural Transformation Fund 20.0 20.0 20.0 20.0 40.0 - - 40.0 - -
RET Business Development Capital 12.6 - 8.0 - - 12.6 - - 8.0 -
RET Business Development - FTs (Expenditure) - - - - - - - - - -
RET Business Development - FTs (Income) - (190.3) - - - (190.3) - - - -
RET Agri Environmental Measures Capital 14.1 - 3.0 - - 14.1 - - 3.0 -
RET Leader 8.9 - 3.8 - - 8.9 - - 3.8 -
RET Crofting Building Grants and Loans Scheme Income (0.9) - (0.9) - - (0.9) - - (0.9) -
RET Crofting Building Grants and Loans Scheme Costs 1.9 - 1.9 - - 1.9 - - 1.9 -
RET Capital 10.3 - 8.6 - - 10.3 - - 8.6 -
RET Capital Receipts (0.5) - - - - (0.5) - - - -
RET Other EU Income (18.3) - (8.0) - - (18.3) - - (8.0) -
RET EU Fisheries Grants Capital 9.6 - 9.6 - - 9.6 - - 9.6 -
RET Fisheries Harbour Grants 1.0 - 1.0 - - 1.0 - - 1.0 -
RET Marine EU Income (6.2) - (6.2) - - (6.2) - - (6.2) -
RET Woodland Grants 37.0 3.0 45.0 1.0 40.0 - - 46.0 - -
RET EC Receipts (17.5) - - - (17.5) - - - - -
RET Capital 3.6 - 22.1 - 3.6 - - 22.1 - -
RET Low Carbon Economy - - 3.2 - - - - 3.2 - -
RET Highlands and Islands Enterprise (Capital) 25.5 - 30.2 - - 25.5 - 0.8 29.4 -
RET Highlands and Islands Enterprise FTs (Expenditure) - 2.0 - 2.6 - 2.0 - - 2.6 -
RET South of Scotland Enterprise 8.4 5.0 13.4 5.0 - 13.4 - 0.4 18.0 -
RET VisitScotland (Capital) 5.3 - 8.5 - - 5.3 - - 8.5 -
RET Tourism Special Projects 1.3 - - - - 1.3 - - - -
RET - Total 116.1 (160.3) 163.2 28.6 66.1 (110.4) - 112.5 79.3 -
SSOP Social Security Advice, Policy and Programme 60.0 - 71.0 - - 60.0 - - 71.0 -
SSOP Social Security Scotland - - 22.0 - - - - - 22.0 -
SSOP Funeral Support Payment (formerly Funeral Expense Assistance) - 9.2 - - - 9.2 - - - -
SSOP - Total 60.0 9.2 93.0 - - 69.2 - - 93.0 -
TIC Connectivity - Capital 58.7 - 98.2 - - 58.7 - - 98.2 -
TIC Energy Efficiency and Industries 50.4 - 76.4 - 50.4 - - 76.4 - -
TIC Renewable and Community Energy 32.0 - 32.0 - 32.0 - - 32.0 - -
TIC Low Carbon Economy 47.0 - 47.0 - 47.0 - - 47.0 - -
TIC FTs (Expenditure) - 26.5 - 26.0 26.5 - - 26.0 - -
TIC FTs (Income) - (0.6) - (3.7) (0.6) - - (3.7) - -
TIC Cities Investment and Strategy 201.0 - 198.1 - - 201.0 - 23.0 175.1 -
TIC Major Public Transport Projects 207.0 - 173.0 - 207.0 - - 173.0 - -
TIC Rail Franchise 282.0 - 294.0 - 282.0 - - 294.0 - -
TIC Rail Infrastructure 529.0 - 501.0 - 529.0 - - 501.0 - -
TIC Smartcard Programme 2.8 - 2.8 - - 2.8 - - 2.8 -
TIC Scottish Canals - Capital 12.2 - 12.2 - 12.2 - - 12.2 - -
TIC Support for Sustainable and Active Travel - Capital 59.4 - 59.4 - 59.4 - - 59.4 - -
TIC Support for Sustainable and Active Travel - FTs (Expenditure) - 35.0 - 32.8 35.0 - - 32.8 - -
TIC Support for Sustainable and Active Travel - FTs (Income) - (0.5) - (0.5) (0.5) - - (0.5) - -
TIC Future Transport Fund 83.3 - 118.3 - 78.3 5.0 - 118.3 - -
TIC Travel Strategy and Innovation 55.1 - 35.1 - 55.1 - - 35.1 - -
TIC Capital Land and Works 179.8 - 155.7 - - - 179.8 - - 155.7
TIC Tay Road Bridge Capital Grant 4.2 - 0.9 - - - 4.2 - - 0.9
TIC Forth Road Bridge Capital Maintenance 26.4 - - - - - 26.4 - - -
TIC Queensferry Crossing 2.4 - 2.1 - - - 2.4 - - 2.1
TIC Network Strengthening 77.5 - 104.4 - - - 77.5 - - 104.4
TIC Road Improvements 46.1 - 46.3 - 4.5 - 41.6 25.3 - 21.0
TIC Structural Repairs 45.7 - 100.0 - - - 45.7 - - 100.0
TIC Clyde and Hebrides Ferry Services 18.1 - 18.1 - 18.1 - - 18.1 - -
TIC Northern Isles Ferry Services 3.8 - 3.8 - 3.8 - - 3.8 - -
TIC Piers and Harbours Grants 29.3 - 41.2 - 29.3 - - 41.2 - -
TIC CMAL - Voted Loans 33.8 - 21.9 - 33.8 - - 21.9 - -
TIC CMAL - Capital Receipts (7.1) - (7.1) - (7.1) - - (7.1) - -
TIC Highlands and Islands Airports Ltd - Capital Grant 36.8 - 57.7 - - - 36.8 - - 57.7
TIC Islands Plan - - 9.5 - - - - 9.5 - -
TIC Ferguson Marine 49.6 - 45.0 - 49.6 - - 45.0 - -
TIC - Total 2,166.1 60.4 2,246.8 54.6 1,544.6 267.5 414.4 1,583.5 276.1 441.8
COPFS 4.3 - 4.8 - - 4.3 - - 4.8 -
COPFS - Total 4.3 - 4.8 - - 4.3 - - 4.8 -
Parliament 1.1 - 1.1 - - 1.1 - - 1.1 -
Parliament - Total 1.1 - 1.1 - - 1.1 - - 1.1 -
Total 5,203.5 620.0 5,423.0 408.0 1,765.2 2,881.0 414.4 1,923.7 2,848.5 441.8

1. The case for low carbon infrastructure in Scotland


Contact

Email: Finance.Co-ordination@gov.scot