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Finally, when it comes to being at the cutting edge of innovation and research, where Scottish universities have punched well above their weight for a very long time, is there evidence that Scottish universities are finding that more difficult? In other words, is there evidence that the knowledge exchange that you spoke about and international co-operation, which has been absolutely crucial to many universities in Scotland, particularly in the past two decades, are being undermined due to the funding situation?

That is very helpful, secretary of state. It is absolutely crucial that the data that is used in making these decisions is agreed on, because, as I have said, and as has come up in our budget report, if it is different, that makes policy making all the more troublesome.

This question is much more technical—I apologise for that—but it is important. You set out in your letter the methodology that has been used to measure the areas that you believe are most in need. That methodology is also on the UK Government website and is largely based on the indices that the Office for National Statistics produced.

When the Scottish Government makes an assessment of the areas that it thinks are most in need, it uses the formal Scottish Fiscal Commission budget analysis and estimates, with some based on ONS input and others not. I want to check that the UK Government’s assessment of the areas that are most in need—that is, the methodology that you use—does not use data that is different from the data that is used when it comes to the Scottish economy. If there was different data, there could be different interpretations.

A conclusion from our budget report was that the Scottish economy sometimes suffers from the Scottish Fiscal Commission and the Office for Budget Responsibility having different timescales. Are you confident that the methodology that is being used to decide which areas are most in need uses a formula agreed by both Governments?

That is very helpful. Is it your understanding that that would be done on an independent basis for all spending across the UK?

I reference the fact that the co-operation on deals such as the Tay cities deal was absolutely first class, because everybody was on the same page. The UK Government, the Scottish Government, local authorities and local interest groups were on the same page with regard to what the ambitions were for the Tay cities project, and I think that that was true of the other city deals, too.

If there was a slight difference between the Scottish Government’s priorities through the national performance framework and those of the UK Government, how would that be resolved to the satisfaction of both Governments?

That is very helpful.

In your helpful letter to the committee of 21 February, you spoke about engagement with the devolved nations on the three new funds. Could you expand on that? As the convener hinted in relation to investment, concerns have been expressed that the UK Government was choosing to engage much more with local authorities and stakeholders in local communities than with the Scottish Government.

I would like to know about the process. The Scottish Government develops many of its policy ambitions through what is called the national performance framework. If the process is to work, there must be some articulation between the aims and objectives of the UK Government and the aims and objectives of the Scottish Government. Could you expand on how you see that engagement taking place, especially in relation to the aims and objectives of the Scottish Government?

Secretary of state, you will be aware that the committee has recently published its report on the budget for 2022-23. It was a unanimous report. Not only does it flag up quite a lot of concerns about the Scottish economy, it raises concerns about the budget process. One of the conclusions in that report is that there is not sufficient transparency between the UK Government and the Scottish Government about where the income streams come from and, just as important, where they are being spent. Those points were also raised by people who gave evidence to the committee during our scrutiny of the budget.

On the three new funds that we are discussing, are you confident that both Governments are absolutely clear about the amounts of money that are available and what the timescales are?

I will pursue a couple of themes from the convener’s questioning, as well as one of my own.

As the cabinet secretary knows—she has already given us an answer about it—the frustration for the committee is that it is difficult for us to scrutinise the budget because there are doubts about what is new money, what is old money and what has been transferred across.

However, there is also concern that it is very difficult for us to measure transparency in where the money is going. You cited the example of health and social care; obviously, there is a lot of chat about setting up a national social care system and the expense that that might incur.

The committee is interested to know your thoughts on how we can improve our scrutiny of outcomes and of where, in fact, spending is going—in particular, on budget lines at levels 3 and 4 for local government.

Will you give us your thoughts on those matters?

My last question is about the longer-term predictions for the Scottish economy, which are, as you know from witnesses who have come to the committee, not good.

I heard you say in answer to the convener that one of the concerns about tax take is that we have issues regarding the population of taxpayers. You referred to the north-east, where there is perhaps greater variation. It is also an area where there is, on balance, a highly educated workforce that earns higher incomes. Therefore, we can argue that it is able to produce more, when it comes to the tax take. If the Scottish Government’s intention is to reduce the oil and gas industry, what effect will that have on the tax take, which we are all desperate to increase? That has substantial repercussions for what the Scottish Fiscal Commission tells us about deficits.

That is helpful, cabinet secretary. The committee will want evidence that Scottish Government policy changes will, in fact, benefit the tax take, because that is the really serious issue for Scotland in the future.