The Official Report is a written record of public meetings of the Parliament and committees.
All Official Reports of meetings in the Debating Chamber of the Scottish Parliament.
All Official Reports of public meetings of committees.
Displaying 869 contributions
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
Good morning. We have touched on inflation and some of the pressures already, but the Government’s funding is fixed and it is over 10 or 20 years. How should that funding pressure be handled by the various deals? We have 12 deals on the table. Two are fairly recent, but 10 have a bit of history. How are they dealing with the inflationary pressure at the moment? Derek, do you want to go first?
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
As you are aware, the Scottish Affairs Committee started an inquiry into the same area, which then had to be cancelled because of the election. A submission to that committee quite clearly refers to the “data-driven innovation programme”, which is all about the supercomputer. You are saying that funding is safe, yet you have pulled £800 million.
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
If the funding situation that you inherited from the previous Government was so bad, can you tell us where you found the £14 billion for the announcement on AI that was made by Keir Starmer on Monday?
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
So there is no Government money in that whatsoever?
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
That is why the supercomputer at the University of Edinburgh was so important. There are only two known exascale computers in the world, both in the US. The Edinburgh one would have been the third. Edinburgh has been the home to high-performance computing for more than 30 years. It would make sense for it to be located here, yet we are hearing, as Willie Coffey indicated, that the first AI growth area will be in Oxfordshire, the home to the Atomic Energy Authority.
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
Before I ask others to contribute, value engineering is about looking at alternative building methods, different materials and so on. Is there any impact on the potential outcomes that are expected from that project?
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
Following on from Willie Coffey’s line of questioning, you have indicated previously that the funding for the city deals is safe and that no money has been withdrawn from the city deals. However, the supercomputer that was going to be built at the University of Edinburgh was part of the Edinburgh city deal, so what happened to that £800 million?
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
Do you know the timescale for what will happen in Edinburgh?
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
Of course, the cost of delivering any project is impacted by construction inflation. Since 2020, construction inflation has increased by 20 per cent and it is expected to increase by a further 17 per cent by 2029. All the construction projects are impacted by Brexit, Covid, the conflict in Ukraine and the cost of living increase, yet the UK Government’s contribution is fixed. Why should local authorities pick up the inflationary aspect, or are you happy to see projects being descoped because of a lack of funding?
Economy and Fair Work Committee
Meeting date: 15 January 2025
Gordon MacDonald
They call it value engineering.