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There is a tension because the Government often wipes its hands of funding decisions that Creative Scotland makes because of the independence that the body has but, on this issue, the Government made it clear that it wanted to maximise the number of organisations that are in receipt of Creative Scotland funding and you sought to do that.

To follow up on that, we all know about the problems in the culture sector over the past few years; we have talked already this morning about the open fund. The culture sector has been facing a huge amount of uncertainty, and multiyear funding is an attempt to try to provide some certainty for the future.

The Scottish Government gave a £100 million commitment, and we are expecting £20 million next year. When you said that you are assuming an extra £20 million next year, were you talking about Creative Scotland or the culture sector receiving that extra funding?

Yes, very much so.

That would be helpful as we scrutinise the budget. It would also be very helpful to understand the position that HES is in. My understanding is that there is currently a £3 million shortfall in reaching that target.

You must understand why people might raise their eyebrows at an organisation having financial difficulties and, at the same time, increasing its directors’ pay by up to 18 per cent.

We regularly discuss skills shortages, and you mentioned earlier the skills issue that the sector faces. We know about the shortage of apprenticeships, and we know about the shortage of tradespeople. There is not necessarily a shortage of directors, perhaps, but there is certainly a shortage of apprenticeships and tradespeople. At the same time as directors’ pay has been hiked by between 16 and 18 per cent, the increase for apprentices within the pay and grading framework that has been agreed by your organisation is between 3.5 and 5.4 per cent—which is a significant difference. The increase for skilled tradespeople is between 0 and 0.7 per cent. How is that fair?

In the context of the issues around culture that were mentioned earlier, maybe the fact that the pay increases are so significantly different explains why there are concerns within the organisation. Going back to the point about the budget, how is the organisation tackling the skills shortage by focusing on increasing pay for those at the top but not by as much for apprentices and tradespeople?

Good morning to the panel. I, too, have some specific questions on the budget for Ms Turnbull. As a committee, our job is to scrutinise the Government’s financial decisions and the financial performance of bodies that rely on Government funding. That is even more the case when there are calls on the Government to increase that funding. The last time that HES gave evidence to the committee, we heard about the new business model and the plans to increase its income by £10 million while, at the same time, experiencing a reduction of £2 million in its grant-in-aid funding. You mentioned income. How is HES currently getting on with that target of raising an extra £10 million in income?

It would be helpful if you could come back to us with the details. You are having to manage a significant shortfall.

That would be very helpful.

This is my last question on pay and financial planning. I understand that, in June 2024, HES budgeted for a 2 per cent increase in pay despite the Scottish Government having set out a public sector pay policy just two months before that suggested an increase of 3 per cent in the public sector. Is that correct? Is that your understanding? What does it say about your organisation’s financial planning if it is not adhering to the Scottish Government’s pay policy?

Clearly, it is a challenging period. You have to put measures in place and make efficiency savings in your organisation. Money is tight, and you have a considerable number of staff—around 1,800. With all of that in mind, why did HES agree a new pay and grading framework in April that will see a new top grade of employee, presumably directors, who will have their earnings potentially increased by between 16 and 18 per cent? If the organisation is looking for efficiency savings, why is the organisation introducing that top band?

I repeat that any attacks on war memorials are deeply disrespectful. Such attacks are a scourge and we should do everything that we can to eradicate them.

When it comes to the balance between deterrence and education, your mention of community payback orders was, I thought, really interesting. Some might point out that we have war memorials to remember the sacrifice made by so many generations of our countrymen and women, who did their duty to this country in protecting our freedom. However, your bill on the desecration of war memorials could take away people’s freedoms for up to 10 years. Some might feel uncomfortable about that, when we think of those who fought for our freedom, and perhaps we should be focusing more on community payback orders. At the end of the day, our veterans and the people who have fought for this country have done it a huge service, and such orders would be a more appropriate sentence for the most severe attacks on war memorials than a custodial sentence of up to 10 years.