Seòmar agus comataidhean

It is vital that we continue to balance the need to deliver net zero with the need to protect our natural environment, tourism and rural communities. Can the cabinet secretary say any more about the need to strike that balance, and how that will inform the strategic spatial energy plan?

It is vital that we continue to balance the need to deliver net zero with the need to protect our natural environment, tourism and rural communities. Can the cabinet secretary say any more about the need to strike that balance, and how that will inform the strategic spatial energy plan?

It is vital that we continue to balance the need to deliver net zero with the need to protect our natural environment, tourism and rural communities. Can the cabinet secretary say any more about the need to strike that balance, and how that will inform the strategic spatial energy plan?

To ask the Scottish Government what implications the recent announcement of next steps for its £1.5 billion bonds programme will have for the financing of major capital projects across Scotland. (S6O-05455)

I am glad to be able to speak in the debate.

I was a councillor in East Lothian from 2007 until 2022 and council leader from 2010 until 2012. It was always a busy time when we discussed our budget-setting decisions. Those were tough decisions, but our priorities were always part of that process.

I remember the report of the Christie commission, which came out on 29 June 2011, when I was leader of East Lothian Council. The Christie report stated:

“If we are to have effective and sustainable public services capable of meeting the challenges ahead, the reform process must begin now.”

Here we are, discussing it 15 years later. As Patrick Harvie said, it is the responsibility of all of us to pursue that process.

The principles that must inform the reform process are as clear today as they were then:

“Reforms must aim to empower individuals and communities”.

That is a responsibility not only of Government but of local authorities.

The Christie report went on to say:

“Public service providers must be required to work much more closely in partnership, to integrate service provision … We must prioritise expenditure on public services which prevent negative outcomes”

and work together with a view to becoming more efficient.

I am sorry, Mr Hoy, but I only have four minutes.

I took that challenge seriously as council leader. I worked with the then Labour-controlled Midlothian Council and we proposed having a combined education service. We worked with stakeholders in a formal consultation process and came up with a proposal that would have delivered combined savings of millions of pounds. However, when the formal Labour-Tory coalition came into power in 2012, it decided not to proceed with the proposal at that time.

It is safe to say that the recommendations of the Christie commission have been progressed on only a limited basis. Again, that is the responsibility of us all in this place. I am obviously aware of the work of Ivan McKee on public sector reform. In the next session of Parliament, members must work together in a cross-party manner to move that agenda forward.

I struggle a little with the part of the Tory motion that expresses a lack of confidence that the current consultation on the future of council tax will deliver fair and considered reform. That consultation seeks views on how Scotland’s council tax system could be made fairer and up to date. We will have to make a judgment after the consultation responses have been received.

If the council tax is to be replaced at some point, we need to ensure that it remains fair in the meantime. In the early years of the next session, Parliament—not just the Scottish Government—must progress and prioritise council tax reform or replacement. That point has been made by Willie Rennie and Patrick Harvie, but one of the key points to make is that there have been no formal proposals from the Tories on that issue. The issue will be a challenge to all members of the next session of Parliament. There have to be mature, rational and pragmatic political discussions on the subject in this place, and in council chambers, too, after the council elections in 2027. We cannot let electoral cycles dictate the pace of change.

Local authorities’ ability to raise money is limited. We all acknowledge that. Council tax is a key source of income, obviously. Income from fees and charges for services makes up a small percentage of what councils can raise. Non-domestic rates are another source, but the poundage is set by the Scottish Government nationally. Of course, there is now the visitor levy, with councils having discretionary powers to introduce a levy on overnight accommodation stays. Further, there are other potential levies. I find it ironic that the Tories talk about choice, yet they are against local authorities having the choice to introduce workplace parking charges.

Local authorities can raise only between 15 and 20 per cent of their income. Their other source of funding is from central Government. In most European countries, municipalities raise around 50 per cent of their income through local income taxes, sales taxes, visitor levies and various other levies. That gives local authorities more freedom to raise funds and increases their accountability. Grant funding from central Government needs to focus on securing agreed mutual national policy objectives. We need to engage the spirit of the Christie commission and look again at public sector reform. We need to use the refreshed political mandates in 2026 and 2027 to move ahead at pace. The principle of allowing local authorities to raise more of their income, combined with joint national accountability, needs to be progressed. That will require brave, pragmatic politicians. That is what our electorates deserve. That is a challenge to us all.

16:37

Will the Deputy First Minister highlight the key sectors that will benefit from the bonds programme and explain how other Government agencies, such as the Scottish National Investment Bank and the Scottish Futures Trust, can help to leverage in additional funds?

I am glad to be able to speak in the debate.

I was a councillor in East Lothian from 2007 until 2022 and council leader from 2010 until 2012. It was always a busy time when we discussed our budget-setting decisions. Those were tough decisions, but our priorities were always part of that process.

I remember the report of the Christie commission, which came out on 29 June 2011, when I was leader of East Lothian Council. The Christie report stated:

“If we are to have effective and sustainable public services capable of meeting the challenges ahead, the reform process must begin now.”

Here we are, discussing it 15 years later. As Patrick Harvie said, it is the responsibility of all of us to pursue that process.

The principles that must inform the reform process are as clear today as they were then:

“Reforms must aim to empower individuals and communities”.

That is a responsibility not only of Government but of local authorities.

The Christie report went on to say:

“Public service providers must be required to work much more closely in partnership, to integrate service provision … We must prioritise expenditure on public services which prevent negative outcomes”

and work together with a view to becoming more efficient.

I am sorry, Mr Hoy, but I only have four minutes.

I took that challenge seriously as council leader. I worked with the then Labour-controlled Midlothian Council and we proposed having a combined education service. We worked with stakeholders in a formal consultation process and came up with a proposal that would have delivered combined savings of millions of pounds. However, when the formal Labour-Tory coalition came into power in 2012, it decided not to proceed with the proposal at that time.

It is safe to say that the recommendations of the Christie commission have been progressed on only a limited basis. Again, that is the responsibility of us all in this place. I am obviously aware of the work of Ivan McKee on public sector reform. In the next session of Parliament, members must work together in a cross-party manner to move that agenda forward.

I struggle a little with the part of the Tory motion that expresses a lack of confidence that the current consultation on the future of council tax will deliver fair and considered reform. That consultation seeks views on how Scotland’s council tax system could be made fairer and up to date. We will have to make a judgment after the consultation responses have been received.

If the council tax is to be replaced at some point, we need to ensure that it remains fair in the meantime. In the early years of the next session, Parliament—not just the Scottish Government—must progress and prioritise council tax reform or replacement. That point has been made by Willie Rennie and Patrick Harvie, but one of the key points to make is that there have been no formal proposals from the Tories on that issue. The issue will be a challenge to all members of the next session of Parliament. There have to be mature, rational and pragmatic political discussions on the subject in this place, and in council chambers, too, after the council elections in 2027. We cannot let electoral cycles dictate the pace of change.

Local authorities’ ability to raise money is limited. We all acknowledge that. Council tax is a key source of income, obviously. Income from fees and charges for services makes up a small percentage of what councils can raise. Non-domestic rates are another source, but the poundage is set by the Scottish Government nationally. Of course, there is now the visitor levy, with councils having discretionary powers to introduce a levy on overnight accommodation stays. Further, there are other potential levies. I find it ironic that the Tories talk about choice, yet they are against local authorities having the choice to introduce workplace parking charges.

Local authorities can raise only between 15 and 20 per cent of their income. Their other source of funding is from central Government. In most European countries, municipalities raise around 50 per cent of their income through local income taxes, sales taxes, visitor levies and various other levies. That gives local authorities more freedom to raise funds and increases their accountability. Grant funding from central Government needs to focus on securing agreed mutual national policy objectives. We need to engage the spirit of the Christie commission and look again at public sector reform. We need to use the refreshed political mandates in 2026 and 2027 to move ahead at pace. The principle of allowing local authorities to raise more of their income, combined with joint national accountability, needs to be progressed. That will require brave, pragmatic politicians. That is what our electorates deserve. That is a challenge to us all.

16:37

To ask the Scottish Government what implications the recent announcement of next steps for its £1.5 billion bonds programme will have for the financing of major capital projects across Scotland. (S6O-05455)