Official Report 193KB pdf
CMutual Family Protection Plan
To ask the Scottish Government whether it will provide an update regarding its engagement with credit unions in relation to CMutual withdrawing its family protection plan. (S6O-05403)
Scottish Government ministers and officials are engaging regularly with representatives of Scottish credit unions that are impacted by the withdrawal of the family protection plan, as well as with the Financial Conduct Authority and CMutual. We understand that the independent coalition of credit unions has now met with Lucy Rigby, who is Economic Secretary to the Treasury, and formally with the FCA. Due to the FCA’s regulatory independence from Government, we are unable to intervene in regulatory investigation processes.
I have been regularly meeting the independent coalition of credit unions, which has been working tirelessly to support policyholders who have been impacted by the withdrawal of the family protection plan. However, we need the FCA and the United Kingdom Treasury to compel CMutual and Maiden Life Försäkrings to discuss mitigating, in the form of financial redress, the harm that is now occurring. According to the coalition, around 20 people who were policyholders have died since financial support from the plan was withdrawn, which shows that we need action from the UK authorities as a matter of urgency. Will the minister outline any discussions that the Scottish Government has had in that regard with UK Government counterparts or the FCA?
I thank Clare Haughey for bringing the issue to the chamber. Of course, our thoughts will be with the loved ones of those who have lost their lives. I also pay tribute to Clare Haughey for supporting the members of credit unions.
I can tell Clare Haughey that I have written again this week to Lucy Rigby, the Economic Secretary to the Treasury, to highlight the concerns of some of the Scottish credit unions and to offer to meet her to discuss the issue. In my letter, I set out three issues that require the Treasury’s urgent attention. The first is support for families who face funeral costs without adequate cover. The second is a clear determination of whether any kind of misconduct or regulatory breach has occurred in the sale or administration of the policy, including during its closure. The third is consideration of any reforms that are needed to improve consumer protection in relation to closed-book and group insurance products. We continue to engage with stakeholders on that issue.
Rail Fares (Greenock and Inverclyde)
To ask the Scottish Government what assessment it has made of what savings there have been to Greenock and Inverclyde constituents since the removal of peak rail fares. (S6O-05404)
The removal of ScotRail peak fares for good is currently equivalent to an average saving of 17 per cent across all ticket types for hundreds of thousands of people. Passengers who travel on average three times a week between Greenock and Glasgow have saved nearly £280 between September and Christmas 2025. As living costs rise, the Scottish National Party Government is reducing costs for commuters.
Work is under way to put in place a robust analytical process to evaluate the permanent removal of peak fares. It will take some time to be able to meaningfully analyse the impact of removing peak fares. It is too early to draw firm conclusions without more data, as patronage and revenue are sensitive to things such as weather and sports events. We anticipate that we will be able to share emerging findings after the policy has been in place for at least six months, with further reporting towards the end of the year.
In addition to the removal of the peak rail fares, the Wemyss Bay to Glasgow line, which covers part of my constituency, now has two services per hour. I lobbied for that for quite some time. With those two things alone, many of my constituents are benefiting from an increased service. What further plans does the Scottish Government have to make rail travel more accessible and affordable for passengers in Inverclyde?
I congratulate Stuart McMillan on helping to secure that additional service for his constituents.
The removal for good of peak fares is having a major impact on affordability. ScotRail also has a range of discounts, including flexipasses, season tickets, rail cards, and the kids for a quid and club 50 schemes to make rail travel affordable for passengers while balancing that with the need to generate revenue and to invest in a reliable and sustainable rail network.
Cheaper rail fares for commuters provide them with more choice about where they might want to work and encourage more people to travel into our cities and to spend money in retail and hospitality, as well as tackling the climate emergency by encouraging new or potential passengers to get on the train and leave the car at home.
Town Centres (Abandoned and Derelict Premises)
To ask the Scottish Government what more can be done to tackle the problem of abandoned and derelict shops and buildings in town centres. (S6O-05405)
I am aware that that is an issue across many of our towns, which is why we continue to deliver on the long-standing commitment to regeneration with investment of up to £47 million in 2026-27. That includes support for revitalising town centres, encouraging town centre living, addressing the blight caused by vacant and derelict land and supporting community ownership.
The fact of the matter is that councils such as East Ayrshire and others do not deal with that by serving amenity notices under section 179 of the Town and Country Planning (Scotland) Act 1997, because they feel that there is little hope of success and that there is a risk that the public purse will have to pick up the bill. The result is the continued deterioration of buildings and empty shops, with the negative impact on everyone who has to look at those blights to our towns every day.
Can the Deputy First Minister say whether any alternative approach, legislative or otherwise, might be pursued to look at that problem afresh and to see whether the Government, councils, building owners and retailers can come together to tackle the issue and to improve the look and feel of our towns, for everyone’s benefit?
As Willie Coffey outlined, local authorities have powers to act. I urge councils to work with communities, including landlords, to agree on town centre plans and priorities. We are looking at further options. Last year, we consulted on permitted development rights and on the reform of compulsory purchase, which are key issues that affect town centre regeneration, and on the reuse of vacant buildings. We are analysing the responses to that consultation to inform the next steps, and that analysis will be published in due course.
We can also learn from examples such as Aberdeen’s Our Union Street project, where partnership working by the local council and the business improvement district and additional support from the Scottish Government have helped transform the town centre. That project included work with landlords to revitalise units and shopfronts that had fallen into disrepair.
The regeneration of Aberdeen’s Union Street has been hindered by poor planning from the start—an issue compounded by the outsourcing of the work by the Scottish National Party-led Aberdeen City Council. That resulted in the closure of numerous shops and small businesses and caused substantial disruption to the city centre, community and nightlife.
What representations has the Deputy First Minister had from Aberdeen’s SNP council leaders about any support that could be offered to them to get that city centre regeneration off the ground?
The member will be aware of the support that we have provided, including financial support. I am a big believer in empowering local government, and any decisions that are taken by local government are for it, rather than for the Scottish Government.
Local Government Funding
To ask the Scottish Government what its position is on whether local authorities should increase council tax, reduce public services, or a mixture of both, to meet any gaps in local government funding as a result of the draft budget. (S6O-05406)
The draft Scottish budget provides a real-terms increase in the local government settlement, taking it to almost £15.7 billion in 2026-27. Councils have autonomy in how to utilise the vast majority of that funding, which includes £253 million of fully flexible new money, alongside all locally raised income, to respond to local priorities. That should ensure that councils are able to exercise restraint in setting council tax rates, minimising the impact on local people and on household finances.
This budget fails to deliver and is
“a very poor settlement for local government which fails to address the dire financial situation of local government.”
Those are not my words but those of the Convention of Scottish Local Authorities resource spokesman and Scottish National Party councillor Ricky Bell, in a letter to Shona Robison.
In that letter, Ricky Bell highlighted council leaders’ concerns about the continued deprioritisation of local government and a further real-terms cut in funding over the coming years. I will therefore ask again if, as a result of the latest SNP budget—a budget that fails to deliver—my constituents in Orkney, Shetland, the Western Isles, the Highlands, Moray and Argyll and Bute should expect council tax increases, cuts to their public services or a painful mixture of both?
The key fact is that all commentators agree that the local government settlement is increasing in real terms. There is a 2 per cent real-terms increase compared with the 2025-26 local government settlement—that is all set out in the budget.
The point that I would make to Jamie Halcro Johnston is that, if there were to be £1 billion of unaffordable tax cuts, there would not be a single penny of extra money for local government; instead, there would be a deep cut in local government funding.
I have produced a draft budget, so, if Jamie Halcro Johnston and his colleagues want to suggest a change to it at the next two stages of the Budget (Scotland) (No 5) Bill in order to give more money to local government, they can do so. However, the issue is that they will have to tell us where the money is to come from and how it will be delivered.
Answer the question.
I wait in anticipation for Jamie Halcro Johnston to come forward with that proposal.
I ask members who have not been invited to speak to refrain from doing so.
International Development Fund (Budget 2026-27)
To ask the Scottish Government how the increase in the international development fund that was announced in the draft 2026-27 Scottish budget will be spent. (S6O-05407)
I am proud to confirm that, as the Cabinet Secretary for Finance and Local Government set out in her statement to Parliament, while others are choosing to reduce commitments to international development, we in Scotland will increase our international development fund by a quarter to £16 million. We have also reaffirmed our commitment to climate justice, with more than £12 million allocated to support for vulnerable communities in the global south, particularly women and young people.
As the budget is currently in draft, we await final agreement through the parliamentary process before confirming allocations and spending plans for next year that reflect the proposed uplift.
The international development fund will increase by 25 per cent compared with last year. At the same time, the alcohol and drugs budget is being cut by around £1.3 million in real terms, and the health capital budget is being cut by almost £50 million. Our constituents will be wondering why those issues were not as high up the priority list as international development.
Will the Scottish Government simply get on with the priorities of hard-working Scots: building hospitals, improving public services and addressing Scotland’s shameful drug deaths crisis, which remains the worst in Europe?
As the member knows, there has been a significant financial contribution in relation to those issues, particularly in the health and social care budget. I hope that she also recognises that, at the same time, Scotland’s charities and humanitarian relief organisations have done and continue to do a fantastic job.
International development has been supported by Scottish Governments for the past 20 years and has enjoyed cross-party support. I assume that I should conclude from the member’s question that her party is opposed to international development spending and to that consensus. I am very sorry if that is indeed the case.
Presiding Officer,
“The irony is that those who complain about our waning influence on the world are the same ones who complain about our development budget. Our aid commitments give us soft power. We should aspire to lead the world in aid and development.”
Those are not my words—they are not even the words of a Liberal Democrat. They are the words of former Tory Prime Minister David Cameron. Does the cabinet secretary agree with him? I do.
I agree with Jamie Greene, David Cameron and all the political parties in the chamber that have supported international development over the past 20 years. It is simply very disappointing to see the Conservative Party walking away from that consensus.
Social Impact Bonds
To ask the Scottish Government what discussions the economy secretary has had with ministerial colleagues regarding whether social impact bonds can be used to improve the employment opportunities for young people, including in Falkirk West. (S6O-05408)
There is an opportunity for a more considered and consistent approach to philanthropy in Scotland, which has the potential to add value to the Scottish Government’s approach to social justice. The Scottish Government remains constrained in terms of borrowing powers and flexibility for new financing arrangements, but we are committed to improving opportunities for young people, including in Falkirk West.
The Deputy First Minister will be aware that social impact bonds can leverage significant additional investment to support the expansion and delivery of social enterprise and third sector organisation services. They have been successfully used in England for a number of years, securing millions of pounds of additional investment for those sectors. Will the Scottish Government work with stakeholders such as Social Impact Scotland to look at how we could deploy social impact bonds in Scotland across a range of areas in order to secure that additional investment?
I have followed with interest the launch of the United Kingdom Government’s better futures fund and the office for the impact economy. I see the potential opportunities of a social impact bond model to support a wider policy approach to the third sector and social enterprises.
The short answer to Michael Matheson is yes, we are happy to continue to explore all options to deliver on those commitments to support the people of Scotland and a sustainable third sector.
Arts (Young People)
To ask the Scottish Government what measures it is putting in place to encourage young people to engage in the arts. (S6O-05409)
The Scottish Government has a long-standing history of supporting young people to engage in the arts through programmes such as the youth music initiative and Sistema Scotland. We are proud that those programmes will receive an uplift in the 2026-27 budget, taking our annual investment in the programmes to £10 million and £2.787 million. Both programmes demonstrate the transformative power of culture, ensuring that young people of all backgrounds have the opportunity to enjoy music and wider arts.
I am sure that the cabinet secretary followed closely the recent evidence that the Finance and Public Administration Committee took from five performing arts companies. At that session, Alex Reedijk of Scottish Opera said:
“It is interesting that we see a trend and increasing evidence that teachers no longer have the skills to deliver elements of the creative part of the curriculum”.—[Official Report, Finance and Public Administration Committee, 13 January 2026; c 10.]
What discussions is this cabinet secretary having with the Cabinet Secretary for Education and Skills to address that serious concern?
I have been in extensive conversations over the years with our national performing companies, and I acknowledge that teaching and the teaching pipeline—the students who come through from our schools into the likes of the Royal Conservatoire of Scotland—are very important.
If Ms Smith will allow me to do so, I will write to her with greater detail, because I acknowledge that it is really important that our young people receive investment and support. That is exactly what is happening through the budget process. I gently suggest to Ms Smith that, if she agrees with me that that is important, she votes for the budget.
Infrastructure Projects (Finance)
To ask the Scottish Government what its position is on whether, without the use of private finance to enable construction of key infrastructure projects, there is a risk that Scotland could be seen as less attractive for inward investment and as a location for business, compared with other European countries. (S6O-05410)
Scotland remains a highly competitive location for inward investment, consistently delivering jobs and economic benefit. EY data shows that, in 2024, Scotland was the United Kingdom’s leading destination outside London for inward investment for the 10th consecutive year and is ranked sixth among the top 10 destinations in Europe for foreign direct investment.
We will continue our work with the Scottish Futures Trust to explore revenue funding options for infrastructure investment. This aims to unlock additional private investment while ensuring value for money for the public purse.
An analysis of the capital budget for both this year and next shows that the amount that is devoted to trunk roads is 8 per cent. In fact, only half of that relates to improvement as opposed to maintenance and adaptation. That is a paltry amount. Surely the cabinet secretary must agree that, if we are to see Inverness and Aberdeen connected, to allow those powerhouses for renewables to achieve what they can achieve, they must have dual carriageway links, as must the south of Scotland with regard to the A1 and the A77. How on earth will we achieve all those things unless we change our priorities and find different ways to raise capital for these vital projects?
Of course, Fergus Ewing will be aware that capital funding is constrained. As well as the roads programme, there is the housing investment of £4.9 billion, £4.1 billion of which is public capital money. I assume that Fergus Ewing would support the investment in housing as well as the investment in roads.
The constrained capital position is exactly why we are considering revenue finance options, including all the procurement options that are being looked at for the A96. We will continue to do that to ensure that we can invest in our infrastructure, because we know how important that is to growing our economy.
That concludes general question time.
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First Minister’s Question Time