Information

Scottish Budget 2022 to 2023

The Scottish Budget sets out the Scottish Government’s proposed spending and tax plans for 2022 to 2023, as presented to the Scottish Parliament.

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Chapter 9 Net Zero, Energy and Transport Portfolio

Portfolio Responsibilities

The Net Zero, Energy and Transport (NZET) portfolio is responsible for achieving a Net Zero carbon emission Scottish economy in line with the Scottish Government Climate Change Plan which requires all portfolios to respond to the global climate emergency. The portfolio is also charged with protecting and enhancing our natural environment and resources and physical connectivity and infrastructure. While there are significant challenges in this space, there are also significant opportunities to diversify our economy, create good, green jobs, and to lead the world in a just transition to Net Zero.

The overarching aim is to protect and promote Scotland’s environment and to build a strong and sustainable Net Zero economy through:

  • tackling climate change;
  • decarbonising Scotland’s public transport network and improving the use of green energy, enhancing active and sustainable travel opportunities;
  • protecting our iconic species and landscapes;
  • investing in biodiversity and nature restoration;
  • developing a blue economy action plan;
  • improving the quality of our air, land, seas and fresh water;
  • developing a circular economy;
  • empowering communities and improving the way land is owned, used and managed; and
  • investing in the research base.

The portfolio is responsible for heat and energy; transport; environment, forestry and land reform policy, strategy and delivery. It includes Transport Scotland, the Scottish Government’s national agency with responsibility for transport policy and strategy, supporting provision of public transport services, transport infrastructure and the trunk road network, accessibility and active travel and contributing to a low carbon economy. It also includes Environmental Standards Scotland, the new independent body set up to fill the potential gap in environmental governance arising from Scotland’s departure from the EU. In addition it includes Forestry and Land Scotland which supports the sustainable management of Scotland’s national forests and land. This also entails the sponsorship of a number of public bodies including Scottish Environment Protection Agency, Scottish Water, NatureScot, the National Park Authorities, Royal Botanic Gardens, Edinburgh, Forest Enterprise, David MacBrayne, Caledonian Maritime Assets, Highland and Island Airports and Scottish Canals.

The portfolio also leads on strategic infrastructure planning - through the Infrastructure Investment Plan and regular reporting on major projects and programmes. The Infrastructure Investment Plan covering the years 2021-22 to 2025-26 was published earlier this year. The Plan focuses on adopting and building on the recommendations of the Infrastructure Commission for Scotland; showing how we will choose the right future investments and setting out a five-year programme of further improvements in our strategic approach.

Net Zero, Energy and Transport Portfolio

Table 9.01: Spending Plans (Level 2)
Level 2 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Energy 350.8 412.9 413.9
Rail Services 1,264.1 1,339.9 1,396.9
Concessionary Fares and Bus Services 303.8 321.8 413.9
Active Travel, Low Carbon and Other Transport Policy 298.4 332.1 375.9
Motorways and Trunk Roads 748.9 825.9 855.8
Ferry Services 255.1 287.6 296.0
Air Services 86.2 107.6 88.5
Scottish Forestry 47.5 83.7 90.9
Forestry and Land Scotland 17.2 37.5 27.2
Research, Analysis and Other 71.0 90.8 88.3
Environmental Services 157.1 206.5 220.2
Environmental Standards Scotland 2.2
Land Reform 16.5 16.4 13.9
Climate Change and Land Managers Renewables Fund 30.3 31.8 51.3
Scottish Water 121.4 84.1 77.7
Covid-19 Funding 235.2
Total NZET 3,768.3 4,413.8 4,412.6
of which:
Total Fiscal Resource 1,281.7 1,731.0 1,672.3
of which Operating Costs 29.8 33.5 42.9
Non-cash 124.3 159.9 195.0
Capital 2,262.9 2,432.4 2,485.0
Financial Transactions (FTs) 99.4 90.5 60.3
UK Funded AME
Presentational Adjustments for Scottish Parliament Approval
2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Highlands and Island Airports Limited (NDPB Non-cash) (9.5) (9.5) (9.5)
Scottish Canals (NDPB Non-cash) (2.5) (2.7) (2.7)
Public Private Partnerships Adjustments (18.7) (20.9) (23.3)
Grants to Local Authorities 100.7 58.4 58.4
Royal Botanic Gardens (NDPB Non-cash) (2.5) (2.5) (2.5)
National Park Authorities (NDPB Non-cash) (1.0) (1.0) (1.1)
SEPA (NDPB Non-cash) (4.9) (5.3) (5.3)
NatureScot (NDPB Non-cash) (2.5) (2.2) (2.2)
Scottish Water loan repayments not included in Scottish Parliamentary budgets 46.7 58.4 42.8
Environmental Standards Scotland (2.2)
Total NZET 3,874.1 4,486.5 4465.0
Total Limit on Income (accruing resources) 600.0
Table 9.02: Energy Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Energy 215.6 225.2 219.6
Fuel Poverty/Energy Efficiency 135.2 187.7 194.3
Total Energy 350.8 412.9 413.9
of which:
Fiscal Resource 48.5 50.7 64.5
Non-cash
Capital 236.4 304.4 310.1
FTs 65.9 57.8 39.3
UK Funded AME
Table 9.03: Rail Services Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Major Public Transport Projects 207.0 173.0 247.0
Rail Development 3.0 2.0 2.0
Rail Franchise 520.1 663.9 720.9
Rail Infrastructure 534.0 501.0 427.0
Total Rail Services 1,264.1 1,339.9 1,396.9
of which:
Fiscal Resource 241.1 371.9 409.4
Non-cash 1.5
Capital 1,023.0 968.0 986.0
FTs
UK Funded AME
Table 9.04: Concessionary Fares and Bus Services Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Concessionary Fares 244.8 262.8 310.6
Smartcard Programme 4.8 4.9 3.9
Support for Bus Services 54.2 54.1 99.4
Total Concessionary Fares 303.8 321.8 413.9
of which:
Fiscal Resource 301.0 319.0 411.9
Non-cash
Capital 2.8 2.8 2.0
FTs
UK Funded AME
Table 9.05: Active Travel, Low Carbon and Other Transport Policy Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Agency Administration Costs 16.0 19.2 30.0
Road Safety 3.2 4.3 20.8
Scottish Canals 23.2 24.6 25.4
Strategic Transport Projects Review 3.5 3.5 3.0
Support for Active Travel 76.6 91.6 126.0
Support for Sustainable Travel 41.7 39.6 17.3
Support for Freight Industry 0.7 0.7 0.7
Transport Information 0.7 0.8 0.6
Future Transport Funds 72.4 107.4 130.0
Edinburgh Tram Inquiry 0.2 0.5 0.5
Travel Strategy and Innovation 60.2 39.9 21.6
Total Active Travel, Low Carbon and Other 298.4 332.1 375.9
of which:
Fiscal Resource 50.8 56.4 69.0
Non-cash 3.2 3.5 4.5
Capital 209.9 239.9 292.4
FTs 34.5 32.3 10.0
UK Funded AME
Table 9.06: Motorways and Trunk Roads Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Capital Land and Works 179.8 155.7 136.9
Forth and Tay Bridge Authorities 37.3 2.5 2.6
Queensferry Crossing 2.4 2.1 1.8
M&T Other Current Expenditure 15.6 20.5 25.4
Network Strengthening 77.5 104.4 116.0
Roads Depreciation 100.2 135.4 167.5
Roads Improvements 46.3 46.3 36.5
Routine and Winter Maintenance 94.4 106.9 117.7
Structural Repairs 45.7 100.0 119.0
Motorway and Trunk Roads PPP Payments 149.7 152.1 132.4
Total Motorways and Trunk Roads 748.9 825.9 855.8
of which:
Fiscal Resource 266.6 281.1 277.3
Non-cash 100.2 135.4 167.5
Capital 382.1 409.4 411.0
FTs
UK Funded AME
Table 9.07: Ferry Services Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Support for Ferry Services 199.1 231.6 228.5
Vessels and Piers 56.0 56.0 67.5
Total Ferry Services 255.1 287.6 296.0
of which:
Fiscal Resource 177.3 209.8 206.7
Non-cash
Capital 77.8 77.8 89.3
FTs
UK Funded AME
Table 9.08: Air Services Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Highlands and Islands Airports Limited 70.5 91.4 71.3
Support for Air Services 15.7 16.2 17.2
Total Air Services 86.2 107.6 88.5
of which:
Fiscal Resource 39.9 40.4 58.6
Non-cash 9.5 9.5 9.5
Capital 36.8 57.7 20.4
FTs
UK Funded AME
Table 9.09: Scottish Forestry Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Programme and Running costs 17.5 18.1 19.6
Depreciation 0.1 0.1 0.5
Woodland Grants 56.8 62.8 69.5
EC Receipts (26.9) (3.2)
Forest Research (Cross Border Services) 2.7 4.5
Total Scottish Forestry 47.5 83.7 90.9
of which:
Fiscal Resource 24.9 37.6 39.2
Non-cash 0.1 0.1 0.5
Capital 19.5 45.0 50.2
FTs 3.0 1.0 1.0
UK Funded AME
Table 9.10: Forestry and Land Scotland Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
FLS Resource 13.6 15.4 16.7
FLS Capital 3.6 22.1 10.5
Total Forestry and Land Scotland 17.2 37.5 27.2
of which:
Fiscal Resource 13.6 15.4 16.7
Non-cash
Capital 3.6 22.1 10.5
FTs
UK Funded AME
Table 9.11: Research, Analysis and Other Services Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Strategic Policy, Research and Sponsorship 4.5 5.8 4.2
Economic and Other Surveys 4.2 4.5 5.0
Programmes of Research 47.8 50.0 50.4
Royal Botanic Garden, Edinburgh 14.5 30.5 28.7
Total Research, Analysis and Other 71.0 90.8 88.3
of which:
Fiscal Resource 34.0 37.3 36.9
Non-cash 2.9 2.9 2.9
Capital 34.1 50.6 48.5
FTs
UK Funded AME
Table 9.12: Environmental Services Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
National Parks 13.9 17.5 18.5
Environmental Quality 10.8 11.0 10.9
Natural Resources, Peatland and Flooding 29.7 44.1 56.4
Scottish Environmental Protection Agency 37.1 43.5 41.4
NatureScot 49.1 50.2 49.6
Zero Waste 16.5 40.2 43.4
Total Environmental Services 157.1 206.5 220.2
of which:
Fiscal Resource 145.3 138.7 144.0
Non-cash 8.4 8.5 8.6
Capital 7.4 59.9 67.6
FTs (4.0) (0.6)
UK Funded AME
Table 9.13: Environmental Standards Scotland Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Environmental Standards Scotland 2.2
Total Environmental Standards Scotland 2.2
of which:
Fiscal Resource 2.2
Non-cash
Capital
FTs
UK Funded AME
Table 9.14: Land Reform Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Land Reform 15.0 14.9 12.3
Scottish Land Commission 1.5 1.5 1.6
Total Land Reform 16.5 16.4 13.9
of which:
Fiscal Resource 6.0 5.8 5.9
Non-cash
Capital 10.5 10.6 8.0
FTs
UK Funded AME
Table 9.15: Climate Change and Land Managers Renewables Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Climate Change - Policy Development and Implementation 1.1 1.5 1.7
Land Managers Renewables Fund 0.5 0.5 0.5
Climate Action and Just Transition Fund 28.7 29.8 49.1
Total Climate Change and Land Managers Renewables Fund 30.3 31.8 51.3
of which:
Fiscal Resource 26.3 27.8 27.3
Non-cash
Capital 4.0 4.0 14.0
FTs 10.0
UK Funded AME
Table 9.16: Scottish Water Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Interest on Voted Loans (100.5) (103.0) (105.0)
Voted Loans 215.0 180.2 170.0
Hydro Nation 4.7 4.7 4.8
Drinking Water Quality Regulator 0.5 0.5 1.0
Private Water 1.7 1.7 6.9
Total Scottish Water 121.4 84.1 77.7
of which:
Fiscal Resource (93.6) (96.1) (97.3)
Non-cash
Capital 215.0 180.2 175.0
FTs
UK Funded AME
Table 9.17: Central Government Grants to Local Authorities Spending Plans (Level 3)
Level 3 2020-21
Budget
£m
2021-22
Budget
£m
2022-23
Budget
£m
Cycling, Walking and Safer Routes 23.9 23.9 23.9
Support for Inter-Island Ferries 11.5 19.2 19.2
Regional Transport Partnership 15.3 15.3 15.3
Heat Networks Early Adopters Challenge Fund 50.0
Total Central Gov. Grants to Local Authorities 100.7 58.4 58.4

Net Zero, Energy and Transport intended contributions to the National Outcomes

Primary National Outcomes

  • Economy
  • Poverty
  • Children and Young People
  • Environment

Secondary National Outcomes

  • International
  • Communities
  • Education
  • Fair Work and Business
  • Health
  • Culture
  • Human Rights

For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.

Contact

Email: ScottishBudget@gov.scot

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