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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 19 December 2025
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Displaying 1960 contributions

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Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

My questions also start from the premise that you claimed to have set a balanced budget at the start of last year but you did not.

ScotWind has played the role of a contingency fund for the Government over the past couple of years, according to Gillian Martin and others. We are now told that the money is going to be spent in year. When can we expect those allocations to be made to projects? Over the past year, there has been an underspend against the net zero budget of about £40 million. When will we see the pipeline of projects in the north-east and across the country that will see that money delivering against net zero targets and projects?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

Can we expect that to happen again next year?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

So, it makes sense in principle, but how do you see it operating? Would you meet the costs of up-front demand throughout the year then try to replenish the fund through adjustments throughout the year, so that, by the end of the following financial year, you would have had your £350 million? Is that the mechanism that you anticipate?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

When Gillian Martin, who is the Acting Cabinet Secretary for Net Zero and Energy and your colleague in Cabinet, attended the Net Zero, Energy and Transport Committee on 14 January, she said that you had collectively prepared yourselves for a budget settlement that might have meant the use of ScotWind money. On the one hand, we are being told that the planning assumption was in line with and at the top end of the range that you mention, but, on the other hand, we are being told that you expected to get almost none of that money and to have to draw down the ScotWind money, so it is a huge range, is it not?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

Gillian Martin pointed out in that committee appearance that you had prepared for that on the basis that you lowballed the pay offer when setting the budget at the start of the year, and you did so in the full knowledge that the money was going to be insufficient.

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

I understand that, but—

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

On where the money has gone, the Fraser of Allander Institute said on 31 January:

“it does not seem credible that it was in line with ‘internal planning assumptions’, in the context of emergency budget measures prior to the UK Budget”.

The approach that we have ended up with is chaotic, is it not? The budget was set at the start of the year, but there were massive emergency in-year cuts and reallocations within those cuts. You then come to committee and tell us, “We assumed that all that money was coming anyway,” and we find ourselves at the end of the year with a contingency surplus that is going to be held back. On a policy level, that is all over the place—it is up and down and there is no real planning. The approach has just involved waiting for what comes along, has it not?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

Pace is an issue. We have now known for years that the money is there to be allocated. However, instead of it being spent on net zero projects, realising the employment across the country that is required and getting the supply chain in line, it has been used as a bank account to balance the Scottish Government’s budget. It has been held as a reserve instead of being allocated.

We are now being told that it is going to be allocated, but we have not had any real sight, other than broad headings, of when it will happen. Can we have confidence that it will actually be spent this year? If we do not know what the projects are now, what is the chance that the money will flow through into them this year?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

I want to stick with the contingency, for the moment. Is that something that you, as Minister for Public Finance, felt had to be created? Have you, as a result of looking over the conduct of previous budgets, decided to create that space in the budget? You have given us some of the rationale behind it, but is it an approach that you have had to push through? Is it a new characteristic of the Government’s handling of budgets?

Finance and Public Administration Committee

Subordinate Legislation

Meeting date: 4 March 2025

Michael Marra

I suppose that its being centralised gives the figure more visibility.

Minister, you came to the committee previously and said that the allocation of £1.43 billion was broadly in line with forecast assumptions. So, the Government was planning on the basis of £1.43 billion broadly but then found itself at the end of the process with a £350 million contingency. How do we marry up those two statements?