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I thank Murdo Fraser for pointing out the difference that is made by our tax decisions in Scotland—tax decisions that he has opposed. Our block grant has been cut in real terms by the UK Government, so we are having to take decisions in Scotland to try to ameliorate the impact that austerity has had. Our budget is therefore up in real terms, but only because of the tax decisions that we have taken.

Mr Fraser mentioned the support that we give to enterprise agencies. Of course, enterprise agencies do not exist in other parts of the UK. We have an enterprise agency network in Scotland because we value the support that we can give to our business community. That is not available elsewhere in the UK.

In short, yes. That commitment stands. It is not a single-year commitment. I fully expect, through discussions with the cluster, that that £80 million will be deployed in a way that ensures best value and the best strategic advantage for the cluster going forward. It is, however, entirely dependent and predicated on track 2 making progress. It has to be, because there cannot be CCUS without a UK Government decision. We encourage the UK Government to move much faster on that in order to ensure that we finally make up for the opportunities and promises that have been lost over the past decade or more and see the Scottish cluster advancing. We need it in Scotland for our net zero ambitions and the industrial decarbonisation of the Scottish cluster, but so does the UK. This is entirely mutually beneficial and an investment that we need to see coming forward as soon as possible. Our £80 million commitment continues to stand.

Mr Stewart is right. He tempts me to pre-empt what will be in the green industrial strategy, but we are already investing in the likes of the Net Zero Technology Centre in Aberdeen, which is bringing together interested private sector parties to demonstrate the business case for a fixed link of a hydrogen pipeline between not only Scotland but neighbouring countries and Germany. I was in Germany last year on the day of the signing of the UK-Germany hydrogen accord, and Mr Stewart is right. In Germany, there is massive interest in industrial decarbonisation based on green hydrogen. Germany wants, for obvious geopolitical reasons, to diversify from where it is getting its energy, and we feel that we have an opportunity, with the abundance of renewable energy before us at the moment and also in the future, to see some of that offtake go not necessarily to the grid but into other elements, such as the production of green hydrogen. There are huge opportunities for us to use hydrogen domestically for industrial decarbonisation as well as for export. We will be looking at that element as part of the green industrial strategy process, and we will continue to work with industry on the feasibility of getting to that point. As I said, that is already happening with the Net Zero Technology Centre and elsewhere.

I appreciate Colin Beattie’s question. We have had to take very difficult decisions, because of the fiscal context within which we are operating. It is widely appreciated by most reasonable commentators that this is one of the most challenging budgets in the devolution era. Rampant inflation and constrained public sector investment from the UK Government has passed on to us a very challenging budget situation, and as a result, we have been looking to ensure that all public bodies are as efficient as possible. There has been an ask to achieve savings almost universally across the board, and enterprise agencies are not immune from that. Obviously, I am working with all three to ensure that the challenging budget situation can be navigated and that the economic activity and transformation that they help and support us to achieve can be achieved.

I point Mr Beattie, as I did Mr Stewart, to the launch of Scottish Enterprise’s new corporate plan, in which its activities have been refocused on the energy transformation that we are required to see, on ensuring increased capital investment and greater productivity in our business community, and on innovation and seeing businesses continue to innovate. Those are the areas where I would expect to see continued investment from enterprise agencies.

It is undeniable that the reduction in the capital allocation that the Scottish Government has received and is receiving—that is, the projected 10 per cent cut to our capital budget over the coming five years—will have an impact, particularly when set against rising inflation and supply chain pressures. We have allocated almost all of the financial transactions budget to the Scottish National Investment Bank, and the reduction is directly attributable to the reduction in the financial transactions taken by the UK Government.

In both areas, you can see a direct correlation between UK Government decisions and their impact on our budget and on the decision-making possibilities that are available to us. It is undeniable that it will have an impact. As far as the energy and enterprise agency spaces are concerned, I would far rather see an increase in capital expenditure, particularly given the opportunities that we have with the energy transition. However, realising our potential to do that at a time when our capital budget is being squeezed so hard by the UK Government will be more than challenging.

We established South of Scotland Enterprise only a few years ago, because we recognised that we wanted to take greater advantage of the economic potential of the south of Scotland, and I am very pleased with the work that Russel Griggs and his team have been doing on exactly that issue. As for the area that Mr Smyth highlighted, the agency has been well engaged in supporting the real living wage campaign in the south of Scotland and is seeing great results off the back of that. I will continue to support it in that respect.

I more than appreciate that there will be challenges for our enterprise agencies, as there will be for others across Scotland, as a result of the budget. However, there are major opportunities available. There are, for example, big economic opportunities coming through not just from the energy transition but from innovation and the digital sector. The investment that we are making to increase the digital budget will have a disproportionate impact on rural communities and will see broadband being rolled out through the reaching 100 per cent programme, making up for the shortfall in funding for what is a reserved area.

We will continue to do what we can to invest while recognising not just the challenges but the economic opportunities in more rural areas, including in the south of Scotland. I will continue to work with Russel Griggs and his team, with whom I have a very good working relationship, to ensure that the opportunities that they are working towards can be met.

I hope so on both counts. As I said in response to Mr Beattie, there could be a direct correlation with regard to financial transactions, for instance, between the cut that the UK Government has taken and our ability to allocate. We have allocated almost all the financial transactions available to us to the Scottish National Investment Bank, but the bank is also hugely reliant on capital funding, and our capital budget is going down by 10 per cent over the next five years. Decisions at UK level have direct consequences for our decision-making opportunities in Scotland.

I would by far prefer that we saw those problems cut off at source, with investment coming from the UK Government. However, I do not see that coming from this Tory UK Government—or, I am sad to say, from an incoming Labour Government. If we cannot have that, it makes the argument for Scottish independence all the greater.

First, in response to Mr Smyth’s point about growth, we have, of course, seen 10 per cent per capita growth in Scotland’s economy since 2007, compared with 6 per cent in the rest of the UK. His assertion that we are not seeing growth in Scotland is wrong. I continue to support economic growth for a purpose, which is to invest in a wellbeing economy.

As for Mr Smyth’s point about SNIB, we will continue to discuss the asks of the chair and the chief executive with regard to financial flexibilities as things continue to grow and develop. In a meeting only two weeks ago, I think it was, we gave them a commitment to exploring that this year. Those discussions are on-going, and we are looking at what we can do to ensure that the bank is able to operate in the way that Mr Smyth has outlined on those asks and on others, too.

That is to ensure that we continue to roll out the broadband capability that is part of the R100 programme. It is about providing that infrastructure to ensure that we are able to match the digitisation and innovation aspirations of our business community. As I said in response to Colin Smyth, that will be, by its nature, disproportionately beneficial to rural and island communities, which is where the roll-out is needed most. I look forward to continued expansion of the R100 programme in this financial year off the back of the 50 per cent budget increase. It is also, I hope, a good investment in the supply chain and the business opportunities that will be available for our companies across Scotland.