Scottish Government

FINANCE AND SUSTAINABLE GROWTH

Portfolio Responsibilities

The Finance and Sustainable Growth portfolio is responsible for managing Scotland's budget effectively and delivering the right mix of policies to ensure increasing, sustainable growth in the Scottish economy.

It contributes substantively to our Purpose - to focus government and public services on creating a more successful country, with opportunities for all of Scotland to flourish, through increasing sustainable economic growth - and is a critical driver of our wealthier and fairer Strategic Objective - to enable businesses and people to increase their wealth and more people to share fairly in that wealth. A fairer Scotland will in turn help reduce inequalities in areas such as educational attainment and health, helping Scotland become smarter and healthier. Examples where the budget for 2010-11 will contribute to promoting equality include using energy efficiency measures to lift individuals out of fuel poverty, improving access to public transport and providing support to Black and Minority Ethnic social enterprises.

With overall responsibility for tackling climate change and energy efficiency and by investing to increase growth in Scotland's high-potential renewable energy sector, the portfolio also contributes to a greener Scotland.

The Finance and Sustainable Growth portfolio has responsibility for:

• delivering better value in the Scottish budget to ensure we get the best possible return for frontline public services and taxpayers;
• supporting public service so that people throughout Scotland benefit from high quality, efficient and responsive services and to deliver smaller, simpler and more efficient government;
• delivering and maintaining the right infrastructure for business success - through investment in transport, investment in Scottish Water and modernising the planning system;
• refocusing the enterprise agencies towards a shared goal of delivering increasing, sustainable economic growth and promoting Scotland's tourism industry;
• leading on the Government's contribution to tackling climate change and improving energy efficiency; and
• further developing an innovative, sustainable and inclusive third sector.

Summary of Key Spending Priorities

The Finance and Sustainable Growth portfolio will be responsible for public spending of £5.9 billion in 2010-11 (excluding local government). Chapter 9 sets out the local government responsibilities for delivering national priorities and services relevant to this portfolio.

For 2010-11, the priorities for the Finance and Sustainable Growth portfolio are briefly described below.

Supporting the economy and assisting the recovery from recession

We will take all necessary measures within the powers of the Scottish Government to help businesses, families and communities through the downturn and to make sure Scotland is ready and competitive when the recovery comes.

Scotland needs the right infrastructure to allow the economy to more effectively compete and succeed. Our programmes and policies, which are designed to meet the strategic needs of Scotland's wealth creators as well as improving the quality of life of Scotland's people are set out below.

For transport, these include:

• investing £30m in the design and development of a replacement Forth crossing;
• investing £842.9m in rail infrastructure through Network Rail and rail services through the rail franchise, including investing in expansion and improvements to services through our major projects programme;
• delivering a motorway and trunk road network that supports the economy and the people of Scotland by enabling safe and reliable journeys (£503.9m, excluding capital charges);
• providing resources of £105.0m to deliver high quality ferry services ;
• continuing to support lower bus fares across Scotland through the Bus Services Operators Grant (£61.2m);
• investing £191.9m in providing free travel to over one million people on the bus network, improving quality of life through greater access to vital health and community services, employment and education and leisure facilities;

As the principal vehicle for enterprise development in Scotland, the enterprise agencies play a crucial role in generating new investment and innovation in Scottish businesses. We have already acted to reinvigorate the enterprise agencies - refocusing them towards a shared goal of delivering increased and sustainable economic growth. Tourism is included within the Finance and Sustainable Growth Portfolio - alongside enterprise and infrastructure - so that policy as a whole can reflect the needs and interests of the tourism industry. Our programmes and policies, which are designed to refocus the enterprise agencies and promote our tourism industry, include:

• grant funding of £201.4m to Scottish Enterprise, which will concentrate on supporting innovation and investment in regionally and nationally significant and high potential companies and key sectors (including throughproviding risk capital and establishing a Scottish Investment Bank), in major economic development projects to ensure Scotland is an attractive place to locate, and to increase trade internationally;
• investment and innovation funding of £50.4m through Regional Selective Assistance ( RSA), SMART:Scotland and other direct government innovation support; to be delivered in partnership with Scottish Enterprise as we move towards full transfer of the schemes later in 2010-11;
• Highlands and Islands Enterprise funding of £54.6m on supporting innovation and investment in significant and high potential companies, and key sectors, ensuring Highlands and Islands is an attractive place to locate businesses, and in strengthening communities; and
• £43.8m funding for VisitScotland which triggers another £20m of funding from private sector and local authorities.

We will complete the e-enablement of Scotland's planning system and continue to support planning modernisation. A modern planning system will increase the rate of sustainable economic growth through legislation, policies, actions and decisions on architecture and place making, building standards and planning, which should, in addition, result in the construction of well designed spaces and buildings that are safe, healthy, efficient and sustainable.

We continue to support investment by Scottish Water to improve water quality and ensure connections to the public networks necessary for new developments throughout Scotland.

The third sector also has an important part to play in securing sustainable economic growth. We seek to secure the development of an innovative, sustainable and inclusive third sector, supporting communities to be more cohesive and contributing to high quality public services and raised economic growth. Our programmes and policies include:

• supporting an enterprising third sector with a development programme of £20.8m and the Scottish Investment Fund of £14.8m to encourage greater investment in assets, business development and the skills of people working in the sector; and
• developing strategic partnerships with key national and regional intermediaries to ensure effective infrastructure for the third sector.

Tackling climate change

We will ensure sustained action to deliver the measures necessary to reduce emissions in line with the ambitious statutory targets set in the Climate Change (Scotland) Act 2009.

Our Purpose focuses on increasing sustainable economic growth - economic growth which is not at the expense of future generations. To help facilitate this we have ensured that responsibility for tackling climate change and energy efficiency lies within the same portfolio as economic growth, transport and planning - reinforced by strong linkages to other portfolios. The programmes and policies within the Finance and Sustainable Growth portfolio which contribute to tackling climate change and improving energy efficiency include:

· putting in place a statutory framework through the implementation of the Climate Change (Scotland) Act setting a long term target to cut emissions by 80% by 2050; more immediately, reducing emissions in the period to 2020 by 42%; and preparing a programme of actions across all portfolios to deliver both targets;

· supporting the European Commission to ensure that the EU carbon price continues to be the primary instrument to deliver climate change emission reduction objectives. The EU Emissions Trading Scheme is the central plank of our policy, reducing emissions at least cost;

· introducing the Carbon Reduction Commitment; and

• providing support for renewable energy and energy efficiency through a number of measures including support schemes for marine, hydrogen and biomass; business innovation support; legislation on electricity suppliers; funding the Energy Saving Trust and Carbon Trust to support domestic consumers, businesses and the public sector in improving their energy efficiency; sustainable procurement; purchasing 100% renewable electricity for the Scottish Government estate; taking forward the Saltire Prize; guidance and financial support for community renewables, streamlining the energy consents system.

Renewing and reforming public services

We will continue to renew and reform Scotland's public services in order to deliver high quality services and outcomes for the people of Scotland.

Integral to our spending proposals is a continuing commitment to secure better efficiency so that public sector resources deliver the greatest possible return for Scotland. This includes:

• the Scottish Futures Trust ( SFT), which will deliver value for money in public infrastructure provision through its role as a centre of expertise and an enabler of collaborative working among public bodies. SFT will also further develop the non-profit distributing model.
• an Efficient Government programme to deliver recurring efficiency gains which can be reinvested in improving public services, establishing better processes which will free up staff time allowing workers to use their time more productively.
• A Transformational Government policy which supports opportunities that will deliver continuous improvement in public services. This includes developing Scotland-wide solutions for smaller, simpler Government and support for shared service developments, which in turn deliver more efficient and effective public services.
• The eCare programme, which is working with the Third Sector and agencies such as Social Work, Health and Police to assist them in connecting their systems to the eCare framework. The end result will be effective and efficient data sharing between practitioners within different agencies. As a result, practitioners will be better informed and able to determine appropriate care.

Closely linked to managing public sector resources more effectively and efficiently is reforming our public services as part of our Strategic Priority for achieving Effective Government. In 2010-11, the Finance and Sustainable Growth portfolio will continue to:

• lead on simplifying the public service landscape to help achieve a simpler, smaller and more efficient and effective government in Scotland;
• promote a relationship with local government and Community Planning Partnerships which enables the planning and delivery of jointly agreed outcomes through Single Outcome Agreements, ensuring a focus on securing better outcomes for communities across Scotland; and
• work with local government and their partners in taking forward jointly agreed approaches on ambitious programmes to tackle health inequalities, deal with poverty, and improve the opportunities available to our young people.

Conducting the Census in 2011

The planning, development and implementation of Scotland's Census is a major undertaking and additional funding is provided in this budget for the General Register Office of Scotland to undertake the next Census in 2011, and make appropriate preparations in the preceding years, in parallel with the Censuses in other parts of the UK.

Spending plans for 2010-11 are set out below.

Table 2.01 Detailed spending plans (Level 2)

Table 2.02 Detailed spending plans (Level 2 real terms) at 2009-10 prices

As a result of the cuts imposed by the Chancellor, the Finance & Sustainable Growth Portfolio spending plans for 2010-11 have been reduced by £43.5m since they were published in the 2009-10 Draft Budget. We have released £20m as a result of our decision not to proceed at this stage with the introduction of the Local Income Tax and made reductions across other budgets. In taking these decisions we have altered priority to supporting new technology developments, public transport services and other initiatives that will aid economic recovery. We have also taken the difficult decision not to proceed with the next phase of the Glasgow Airport Rail Link as part of our management of capital budgets overall

Budget Changes

Our spending plans also include the following changes made since the publication of Draft Budget 2009-10:

Scottish Public Pensions Agency

Following the most recent actuarial estimates of expenditure on the Teachers and NHS Scotland pension schemes, the funding requirement shows a net reduction of £268.8/126.2m as a result of an increase in the real discount rate that is applied to future liabilities. The increase in the rate from 2.5% to 3.2% reduced the future liabilities, and hence the cost of providing pensions in the future.

Committees, Commissions and Other Expenditure

Increase of £3.1/5.9m due to the establishment of the Scottish Futures Trust.

Decrease of £0.2/0.2m due to a number of minor transfers out of the portfolio.

Decrease of £20m due to decision not to proceed at this stage with the introduction of Local Income Tax.

Concessionary Fares

Increase of £2.5m to meet increased costs of concessionary fares.

Other Transport Agency

Decrease of £1m in 2010-11 due to Capital acceleration pay back.

Motorways and Trunk Roads

Increase in 2009-10 of £23.9m in capital spending followed by a decrease in 2010-11 of £45.6m as pay back of accelerated capital expenditure in both 2008-09 and 2009-10.

Reduction of £6m in DBFO in 2009-10 due to revised estimates.

Increase of £20.6m in 2009-10 and £10.7m in 2010-11 as responsibility for Forth and Tay Road Bridge Authorities has now passed from Transport Directorate to Transport Scotland

Ferry Services

Decrease of £2/2m in Ferry services due to transfer to Local Government for Orkney Island ferry services and Demand Responsive Transport.

Other Transport Directorate Programmes

Increase in Support for Freight £0.5/0.5m due to Whitehall transfer from DfT for resource freight mode shift grants.

Decrease of £20.6m in 2009-10 and £10.7m in 2010-11 as responsibility for Forth and Tay Road Bridge Authorities has now passed from Transport Directorate to Transport Scotland

Decrease of £5m in Support for Freight in 2010-11 to pay back budget brought forward as part of the capital acceleration initiative in 2009-10.

£0.5/0.5m increase for sustainable travel due to transfer from Health for their contribution.

Enterprise, Energy and Tourism

Decrease due to transfer of climate change to Water and Climate Change - £1/1m

Capital acceleration enterprise - increase in 2009-10 of £30m, decrease in 2010-11 of £35m, the expenditure having been directed towards the enhancement of the SECC Arena, further development of the Edinburgh Bioquarter and structural work on the quayside of the Fife Energy Park.

Enterprise decrease of £18.3/22.5m due to reduced running costs of smaller organisations and the transfer of business gateway and local regeneration funding to local authorities and increases of £1.1m in Scottish Enterprise capital budget and £10.7m in the budget for the Pathfinder Broadband project

Increase in Tourism budget of £2.5m in 2009-10 for Homecoming funding.

Water and Climate Change

Increase due to transfer of climate change to Water and Climate Change from Enterprise, Energy and Tourism - £1/1m

Increase in the cost of capital charges of £11/5m as a result of recent changes to a full weighted cost of capital calculation, in line with UK-wide practice.

Decrease of £31.8m for Scottish Water borrowing reflects Ministers' guidance to Scottish Water in the draft statement on principles of charging for the 2010-15 regulatory period.

Increase of £0.2m in 2010-11 for Climate Change.

Third Sector

Increase of £0.4m in 2009-10 for the Columba 1400 programme and the Princes Scottish Youth Business Trust and a net decrease of £0.5m in 2010-11 as a result of an increase of £0.4m for Columba 1400 programme and the Princes Scottish Youth Business Trust less a transfer out of £0.9m to the Education & Lifelong Learning portfolio for Central Registered Body in Scotland.

Central Government Grants to Local Authorities

Increase of £5m in 2009-10 due to capital acceleration

General Register of Scotland

Increase of £0.2/0.2m as a result of transfers in for Scottish Neighbourhood Statistics work and the Ordnance Survey Pan-American Government agreement.

Scottish Public Pensions Agency

Table 2.03 More detailed spending plans (Level 3)

What the budget does

The Scottish Public Pensions Agency's ( SPPA) principal role is to administer the pensions, premature retirement and injury benefits schemes for employees of the National Health Service in Scotland and for members of the Scottish Teachers' Pension Scheme.

The Agency also has responsibility for developing the regulations covering the National Health Service in Scotland Pension Scheme, Scottish Teachers' Pension Scheme, Local Government, Police and Fire pensions schemes in Scotland; for determining appeals made by members of these schemes; and for providing a pension calculation service for the Scottish Parliamentary Pension Scheme and the Legal Aid Board for Scotland. This budget allows the Agency to continue to improve the range, quality and efficiency of its services to a growing customer base.

The pension scheme funding represents the cost of pensions accrued in that year plus notional interest on current liabilities less income received. It is classified as Annually Managed Expenditure ( AME), funded separately by Treasury from the Departmental Expenditure Limit ( DEL) settlement and, as such, variations in the scheme expenditure do not have to be balanced by adjustments elsewhere in the Scottish Budget.

Budget changes

Decreases of £65/10m and £203.8/116.2m respectively for Teachers' and NHS pension schemes are a result of an increase in the real discount rate that is applied to future liabilities. The increase in the rate from 2.5% to 3.2% reduced the future liabilities, and hence the cost of providing pensions in the future.

Committees, Commissions and Other Expenditure

Table 2.04 More detailed spending plans (Level 3)

What the budget does

The Public Service Reform and Efficiency budget provides support for a range of public service reform programmes. The Transformational Government programme aims to accelerate significant strategic programmes of work to drive efficiencies, reform and productivity in public services in Scotland. The aim is Scotland-wide solutions for smaller simpler Government and improved services to customers.

The Commissions budget covers the work of the Standards Commission.

The Council of Economic Advisers budget covers the cost of holding meetings, travel and subsistence for members attending meetings and the cost of research commissioned by the Council.

This Scottish Futures Trust ( SFT) budget supports the continuing and increasing work of the SFT, established by Scottish Ministers in September 2008 as a body to act as an important focal point in Scotland for action in public infrastructure investment, by bringing together the public and private sectors, promoting and disseminating innovation, good practice, collaborative working practices and experience in order to deliver better value for money and ultimately public services.

SFT are involved in a number of key projects that will deliver improved infrastructure to the people of Scotland, including in the education, transport, health and waste sectors. Among these is SFT's lead role in managing the 'hub' initiative, which aims to deliver primary health care and other community based infrastructure in close collaboration with public and private sector partners. Another of their main operational activities is their involvement in the Government's £1.25 billion school building programme. SFT will seek to encourage collaborative approaches among local authorities to ensure value for money in the delivery of these new schools, approving release of funding when content potential savings will be met.

Budget changes

Increase of £3.1/5.9m due to the establishment of the Scottish Futures Trust.

Decrease of £0.2/0.2m due to a number of minor transfers out of the portfolio.

Decrease of £20m as a result of our decision not to proceed at this stage with the introduction of the Local Income Tax.

Rail Services in Scotland

Table 2.05 Detailed spending plans (Level 3)

What the budget does

The total budget supports passenger rail services in Scotland delivered through the ScotRail Franchise and the rail infrastructure operated by Network Rail required to operate those services and all other passenger and freight services. The budget for Rail Franchise in Scotland relates to the financial contractual commitments of Scottish Ministers under the ScotRail Franchise for supporting passenger services. The Rail Infrastructure in Scotland costs relate to financial commitments to support the operation of rail infrastructure as set by the Office of Rail Regulation.

Concessionary Fares

Table 2.06 More detailed spending plans (Level 3)

What the budget does

The budget provides support for the development and delivery of concessionary travel schemes for older, disabled and young people. The funding provides for bus infrastructure systems to recognise Smartcards.

National concessionary travel is accessed through 'smart-enabled' National Entitlement Cards, which have been developed by local authorities with the support of the Scottish Government.

Budget changes

Increase of £2.5m to meet increased costs of Concessionary Fares scheme.

Other Transport Agency Programmes

Table 2.07 More detailed spending plans (Level 3)

What the budget does

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

The Agency Administration budget funds the running costs of Transport Scotland, an Agency established to support the delivery of the Scottish Government's £2billion annual investment in maintaining and improving rail and road networks and concessionary travel schemes in Scotland.

The Strategic Transport Projects Review reported in December 2008 and recommended 29 strategic transport interventions covering the whole of Scotland to be delivered from 2012 onwards. This budget covers the initial costs of further design and development work to bring these projects to a state of readiness to deliver and also to provide the strategic modelling and appraisal tools to support this work.

Funding is provided for the Major Public Transport Projects, to proceed principally with the development and delivery of major rail public transport projects ( e.g. Edinburgh-Glasgow Improvements Programme, Airdrie to Bathgate, Borders) and contribute to the City of Edinburgh Council's Tram project.

Budget changes

In response to our current economic problems, £1m of capital for Major Public Transport Projects was brought forward from 2010-11 to 2008-09 to fund preparation work in respect of Borders Railway.

Motorways and Trunk Roads

Table 2.08 More detailed spending plans

What the budget does

The budget will allow further progress to be made on the maintenance and enhancement of the trunk road infrastructure. Major influences on spending are the need to maintain the network in good condition and deliver improvements to safety and traffic flows. It will secure value for money in the delivery of routine, cyclical and winter maintenance to maintain the safety, environment and amenity of the trunk road network, and improve the operation of the trunk road network and the provision of information for road travellers.

The budget will reduce serious and fatal accidents through delivery of road safety improvement programmes and reduce pollution and improve air quality by removing traffic congestion through more efficient traffic movement.

It will allow work to continue on completion of the Central Scotland Motorway Network (M8, M80, and M74), A90 Aberdeen Western Peripheral Route and improvement schemes on A68, A75, A77, A82, A9 and A96. It will build and enhance transport services infrastructure and networks to maximise their efficiency; and support the continuing maintenance for two inherited Design, Build, Finance, Operate ( DBFO) contracts with 30km of new motorway constructed on the A74 (M) and 15 km on the M77 south of Glasgow. It will allow preparation work on the Forth crossing to continue.

Budget changes

Increase in 2009-10 of £23.9m funded by a decrease in 2010-11 of £45.6m due to capital acceleration in which capital from 2010-11 was brought forward into 2008-09 and 2009-10 for a range of Small Road Schemes to fund improvements to A9 junctions at Moy, Carrbridge and Bankfoot and Capital Works on Major Road Schemes for improvements to the A96 Fochabers bypass and other projects.

Reduction of £6m in DBFO in 2009-10 due to revised estimates.

Increase of £20.6m in 2009-10 and £10.7m in 2010-11 as responsibility for Forth and Tay Road Bridge Authorities has now passed from Transport Directorate to Transport Scotland.

Ferry Services in Scotland

Table 2.09 More detailed spending plans (Level 3)

What the budget does

The Ferry Services budget covers the subsidy paid for the lifeline ferry services on the Clyde and to the Hebridean and Northern Isles. It also covers the support for the Northern Isles freight service.

The vessels and piers budget has allowed a major new vessel to be ordered which will be brought into service in Spring 2011 on the routes between the Scottish mainland and Islay. In addition, it will support the future piers and harbours investment programme by progressing detailed investigations at Kennacraig, Port Ellen and Stornoway.

The budget for Road Equivalent Tariff will fund the pilot of this approach to ferry fare setting.

Budget changes

Decrease of £2/2m in Ferry services due to transfer to Local Government for Orkney Island ferry services and Demand Responsive Transport.

Air Services in Scotland

Table 2.10 More detailed spending plans (Level 3)

What the budget does

The budget supports Highland and Islands Airports Limited which operates 10 airports in the Highland and Islands, and Dundee Airport. It will sustain the continued operation of airport services throughout the Highlands and Islands thereby supporting the economic and social development of remote and island communities.

Resources will be available for residual expenditure for the previous Air Route Development Fund. The budget supports the Air Discount Scheme, providing discounted fares on eligible routes to people whose main residence is in Orkney, Shetland, the Western Isles, Islay and Jura, Caithness and North-West Sutherland. Eligible persons qualify for a discount of 40 per cent of the core fares on scheduled air services between airports within the eligible areas and Glasgow, Edinburgh, Aberdeen and Inverness. In addition, the budget supports lifeline air services between Glasgow and Barra, Campbeltown and Tiree, which cannot be provided commercially.

Bus Services in Scotland

Table 2.11 More detailed spending plans (Level 3)

What the budget does

Bus Service Operators Grant provides support to the bus industry across Scotland by refunding part of the costs of Fuel Duty which would otherwise result in increased fares. It helps sustain the economy, encourages the use of bus rather than car thereby reducing the environmental impact of increased travel and reduces the cost to local authorities of supporting non-commercial socially necessary services. Discussions are continuing with the bus industry over the possibility of moving towards a scheme that recognises operators' investment in modern buses (both to reduce environmental impacts and to improve access, including access for disabled people).

Other Transport Directorate Programmes

Table 2.12 More detailed spending plans (Level 3)

What the budget does

The budget to support the freight industry will fund grants designed to encourage the transport of freight by rail or water rather than road, fund Freight Best Practice Scotland and other freight policy initiatives.

The grant to British Waterways Scotland will allow it to maintain Scotland's canals in good condition and contribute to the process of economic regeneration, including participation in the Helix project.

The budget for Sustainable and Active Travel promotes alternatives to car use, more efficient use of vehicles, and more active forms of travel, particularly cycling and walking, by supporting projects which raise awareness or facilitate sustainable travel choices.

The budget for Transport Strategy and Innovation provides running cost support for regional transport partnerships, the Mobility and Access Committee for Scotland ( MACS) and the Passengers Transport Users Committee ( PTUC).

The Road Safety budget funds our policies on road safety and taking forward the commitments from Scotland's Road Safety Framework to 2020 which amongst other outcomes seeks to ensure a Safer and Stronger Scotland on the roads by working together to reduce the numbers of fatalities and seriously injured.

Budget changes

Increase in Support for Freight £0.5/0.5m due to Whitehall transfer from DfT for resource freight mode shift grants.

Decrease of £20.6m in 2009-10 and £10.7m in 2010-11 as responsibility for Forth and Tay Road Bridge Authorities has now passed from Transport Directorate to Transport Scotland.

Capital acceleration decrease of £5m in 2010-11 in support for the Freight industry.

£0.5/0.5m increase for Sustainable Travel due to transfer from Health for their contribution.

European Social Fund - 2007-13 Programmes

Table 2.13 More detailed spending (Level 3)

European Regional Development Fund - 2007-13 Programmes

Table 2.14 More detailed spending plans (Level 3)

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

What the budget does

We have responsibility for implementing the 2007-13 European Structural Funds programmes in Scotland, principally through the European Regional Development Fund and the European Social Fund, as well as other cross-border and transitional programmes. Amounts are based on the estimated spend likely to be required. European Structural Funds contribute to the improvement in Scotland's economic competitiveness through support for business research and innovation, skills improvement and the promotion of lifelong learning across a wide range of sectors - in other words, underpinning a number of our Strategic Priorities in delivery of the Purpose. The 2007-13 programmes are administered by two intermediate administrative bodies under three-year contracts to the Scottish Government.

Planning

Table 2.15 More detailed spending plans (Level 3)

What the budget does

Key elements of the Planning modernisation programme include: the conclusion of the e-planning project, which will transform access to the planning system and secure substantial savings for users of the system; start-up support for the new Strategic Development Planning Authorities; support for community engagement, principally through funding to Planning Aid for Scotland; and the Planning Development Programme which is designed to ensure the planning services has the skills and competences required to make the system work effectively.

The Building Standards Division ( BSD) prepares and updates building standards legislation and guidance documents, conducting any necessary research and consulting on proposed changes. A number of technical revisions are proposed for 2010 including new energy standards. To support the Government's climate change agenda new regulations and guidance is also being prepared to improve the energy performance of existing non-domestic buildings. A key work area for BSD is to ensure that European obligations are met and currently work is ongoing for the second stage of the Energy Performance of Buildings Directive.

Architecture and Place is the sponsor Division for the NDPB, Architecture and Design Scotland, which carries out a variety of advisory roles to improve the quality of Scotland's built environment and to support sustainable place-making. The Division also provides funding support for a number of programmes in line with the National Objective that we value and enjoy our built and natural environment. In addition, the Sust. programme aimed at mainstreaming sustainable design, supports the 'greener' objectives of government. The Division also provides support for a number of design awards and initiatives as well as the international promotion of Scottish architecture.

The Directorate for Planning and Environmental Appeals handles planning appeals made against the refusal of planning permission by planning authorities, objections to local development and other infrastructure and other casework mainly concerning the control of pollution and environmental protection.

Enterprise, Energy and Tourism

Table 2.16 More detailed spending plans (Level 3)

Notes:

1. Formerly called Enterprise Networks

2. Formerly called Innovation and Investment Grants

3. Formerly called Energy and Telecommunications

4. Formerly called Business Growth and Innovation

What the budget does

The 2010-11 allocations for Scottish Enterprise (£201.4 million) and Highlands and Islands Enterprise (£54.6 million) reflect the operational requirements of these more streamlined organisations whose focus is on supporting key sectors and businesses with growth potential, target spending on those areas where they can make the greatest economic impact. The Scottish Enterprise total for 2010-11 also reflects a reduction of £35 million in respect of capital expenditure that it accelerated as part of the Scottish Government's Economic Recovery Plan, bringing forward £5 million from 2010-11 into 2008-09 and £30 million into 2009-10. This expenditure was directed towards the enhancement of the SECC Arena, further development of the Edinburgh Bioquarter and structural work on the quayside of the Fife Energy Park.

The Business Competitiveness budget includes the SMART: SCOTLAND programme and Regional Selective Assistance ( RSA). The SMART: Scotland programme is our foremost policy instrument to support near-market research and development projects (feasibility and prototype development) by small and medium enterprises whereas RSA, the main national scheme of financial assistance to industry, supports investment, increased productivity and sustained employment in selected areas of Scotland and accounts for the bulk of this spend. The budget covers commitments made in previous years which are paid in instalments as projects reach agreed milestones. Both grants are in the process of transferring to Scottish Enterprise which will fully administer the schemes following appropriate legislative change.

The Energy budgets support the 10 energy pledges announced by the Cabinet Secretary in February 2009. Specific pledges include the production of action plans in areas such as Renewables, Renewable Heat, Energy Efficiency and a Carbon Capture and Storage roadmap. There is additional funding for studies on sub-sea grids and we will continue to provide grant support for development and deployment of renewable technologies in marine, biomass heat and for the adoption of microgeneration technologies by householders and communities. This has the joint objectives of carbon reduction and the promotion of economic growth. There is significant provision for the Scottish Design Awards and we will continue to develop international partnerships through the Saltire Prize and the Scottish European Green Energy Centre to make Scotland a leader in the development and deployment of green energy

The funding allocated to energy efficiency and microgeneration in part targets the domestic sector. Through improving the energy efficiency of living accommodation, householders can be 'future proofed' against increases in fuel prices and hence lifted out of fuel poverty. Those groups in Scottish society that are more likely to be fuel poor are also likely to include those groups that are targeted by the Scottish Government equalities policy: more women than men are likely to be in fuel poverty, as are families that have children with disabilities. One example is the Energy Saving Scotland home renewable grants programme (part of the Energy Assistance Package). This helps fund air-sourced heat pumps to be installed in the homes of the fuel poor who are off the gas distribution network.

Innovation & Industries funds a range of innovation activities that includes the SEEKIT and Knowledge Transfer partnerships programmes and the Innovators Counselling and Advisory Service for Scotland ( ICASS) scheme and the Intellectual Asset Centre ( IAC). We are currently looking at transferring the ICASS and IAC schemes to Scottish Enterprise during 2009-10 along with the relevant budget cover.

The Tourism budget provides funding to VisitScotland that levers additional commercial and stakeholder income to VisitScotland of £20m per annum. £40m is spent on visitor engagement - attracting visitors and providing information whilst they are here. VisitScotland's marketing activity directly drives additional tourism revenues of around £975m, plus business tourism and e-business benefits. The remainder of the VisitScotland budget is used to fund EventScotland activities, including promotion of the Ryder Cup; to provide information to visitors once they are in Scotland (through over 100 Tourism Information Centres) and to provide routes to market and market trends to 20,000 Scottish tourism businesses. Total tourism revenues are worth £4.1 billion a year to the Scottish economy.

Budget changes

Decrease due to transfer of Climate Change to Water and Climate Change - £1/1m.

Capital acceleration enterprise - increase in 2009-10 of £30m, decrease in 2010-11 of £35m.

Enterprise decrease of £18.3/22.5m due to reduced running costs of smaller organisations and the transfer of business gateway and local regeneration funding to local authorities.

Increase in Tourism budget of £2.5m in 2009-10 for Homecoming funding.

Additional 2010-11 capital budget of £1.1m for Scottish Enterprise and £10.7m in respect of the Pathfinder broadband project has been provided..

Water and Climate Change

Table 2.17 More detailed spending plans (Level 3)

What the budget does

The Water and Climate Change budget covers the sums to be lent to Scottish Water by Scottish Ministers in support of its capital investment programme. The investment programme for 2006-10 will deliver significant improvements to drinking water quality and the environment.

The borrowing requirements of Scottish Water are determined by the Water Industry Commission, Scottish Water's economic regulator. The borrowing is set at levels which require Scottish Water to deliver services and the investment programme at the lowest overall reasonable cost. Some variations between one year and the next will occur and will reflect annual variances in the delivery of the capital programme. Scottish Water's borrowing requirements for 2010-11 and beyond will not be available until November 2009, when the Water Industry Commission will produce its Final Determination.

The budget also includes our contribution to the costs of the UK Committee on Climate Change, a Non-Departmental Public Body set up through the Climate Change Act 2008 to provide advice to the UK Government and Devolved Administrations. In addition to advice relating to Scotland's contribution to UK-level targets, the Committee on Climate Change will advise Scottish Ministers on issues related to the Climate Change (Scotland) Act, including the level of annual targets and progress towards those targets.

Budget Changes

Increase in the cost of capital charges of £11/5m as a result of recent changes to a full weighted cost of capital calculation, in line with UK-wide practice.

Increase due to transfer of climate change to Water and Climate Change from Enterprise, Energy and Tourism - £1/1m

Decrease of £31.8m for Scottish Water borrowing reflects Ministers' guidance to Scottish Water in the draft statement on principles of charging for the 2010-15 regulatory period.

Increase of £0.2m in 2010-11 for Climate Change

Third Sector

Table 2.18 More detailed spending plans (Level 3)

What the budget does

The Third Sector budget seeks to secure the development of an innovative, sustainable and inclusive third sector, supporting communities to be more cohesive and contributing to high quality public services and raised economic growth. The Scottish Investment Fund supports enterprise in the third sector by investing in assets, business development and the skills of people working in the sector. The budget also supports volunteering and a series of strategic partnerships with national third sector organisations aimed at building third sector capacity.

Budget Changes

Increase of £0.4m in 2009-10 for Columba 1400 to assist with initiatives to support young people and for the Princes Scottish Youth Business Trust to help with their business development work; net decrease of £0.5m in 2010-11 comprising of a £0.4m increase for Columba 1400 to assist with initiatives to support young people and for the Princes Scottish Youth Business Trust to help with their business development work less a transfer out of £0.9m to the Education & Lifelong Learning portfolio for the Central Registered Body in Scotland.

Central Government Grants to Local Authorities

Table 2.19 More detailed spending plans (Level 3)

What the budget does

Following the Concordat agreement between the Scottish Government and local authorities, most of the previous budget for ring-fenced grant was added to the budget for general support to local authorities. This table shows the two remaining areas where there are ring-fenced grants to local authorities (or similar bodies) for transport purposes.

Budget changes

The increase of £5m in 2009-10 was the result of the acceleration of capital expenditure, through Strathclyde Partnership for Transport, on park and ride schemes.

General Register Office for Scotland

Table 2.20 More detailed spending plans (Level 3)

What the budget does

The budget largely funds the ongoing statutory functions of the Registrar General, which are to conduct 10-yearly Censuses and prepare and publish demographic and other statistics; to administer civil registration of vital events - births and deaths, plus marriages, civil partnerships, divorces and adoptions - and the statutes relating to these; to maintain the national Health Service Central Register of patients in Scotland for the Scottish Government; and to make available public records about individuals to customers ( e.g. genealogists) and operate the new joined-up ScotlandsPeople Service with our partners, the National Archives of Scotland and the Court of the Lord Lyon.

A major part of the budget provides the Registrar General with the funds necessary to plan, develop and undertake a national Census on 27 March 2011, in parallel with other Censuses in the other parts of the UK. On 29 March 2009 the enumeration processes planned for 2011 were rehearsed using 50,000 households in the west of Edinburgh and on Lewis and Harris. The results of this rehearsal will have been fully evaluated by the autumn of 2009 and thereafter the build up to census day will commence. The increase in budget from 2009-10 to 2010-11 reflects this ramping up of activity by the General Register Office for Scotland and its various contractors. For example, the budget for 2010-11 includes the printing of over 2.5 million pre-addressed questionnaires; the recruitment and training of, and initial payment to, over seven thousand temporary enumerators; payments to the prime contractor for setting up a processing site for the returned questionnaires; and various logistical and postal services that ensure that the questionnaires and other materials get to the right destinations across Scotland.

Budget changes

Increase of £0.2/0.2m as a result of transfers in for Scottish Neighbourhood Statistics work and the Ordnance Survey Pan-American Government agreement.

Registers of Scotland

What the budget does

Registers of Scotland (RoS) is a Trading Fund and is self-financing from fees (so does not receive direct funding from government). RoS maintains and supplies information from a range of public registers. The main two registers, the Land Register and the General Register of Sasines, are concerned with the ownership of land and property. The public registers play a key role in underpinning the economic and social stability of Scotland. RoS's purpose is to record and safeguard rights, providing the people and institutions of Scotland with the social and economic benefits that flow from a publicly guaranteed system of rights in land and property.