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You say “significant”, but if you look at that example, I think that £18 million out of £305 million was carried forward, so around 94 per cent was spent. You make an assessment at the beginning of the process of what the demand will be. There are only three scenarios. We either hit it right on the button—which, statistically, is unlikely—or we spend more or we spend less. We have had conversations about spending more on certain demand-led services and less on others. There will always be—

Good morning. The Scottish Government is once again on track to balance its budget despite continuing to face a challenging financial situation. Persistent high inflation, lower economic growth across the United Kingdom, the continued cost of living crisis and wider geopolitical events mean that careful consideration has had to be given to balancing the budget. The UK Government’s decision not to fully fund the increase in the rate of employer national insurance contributions has added to the challenges that we face in balancing the budget.

Our prudent management of the 2024-25 financial year has allowed us to carry forward £557 million through the Scotland reserve, which is being used in full to support the 2025-26 position. Those amounts, in addition to in-year Barnett consequentials and an anticipated increase in the social security block grant adjustment, allow us to provide additional budget cover across portfolios to meet the emerging pressures within this budget revision.

The autumn budget revision sets out the funding changes and amendments to the budget since the 2025-26 Scottish budget was set. The revision that has been allocated deploys almost £1.2 billion of additional funding to support our public services. It contains the usual four categories of changes. The net funding changes increase the budget by £1,137 million and include the provision of £697.5 million to support health services, £173.7 million to local government, additional funding for the increased pension age winter heating payment and the removal of peak rail fares.

All the consequential funding that has been received from the UK Government in respect of employer national insurance contributions is allocated out as part of the budget revision. The technical Whitehall and internal transfers are presented in the document in the usual way. The supporting document to the autumn budget revision and the finance update prepared by my officials provide further background on the net changes as well as updates on information that has been requested by the committee. I am happy to answer any questions.

I will provide the updated number to the committee to show you exactly where we are on that, but there has been a reduction so far in the first six months of the year, which will continue. We have targets for each of the next five years that we will deliver on, as we have in the past two years.

The total operating cost budget has been set during the spending review period. Taking inflation into account, there will be a year-on-year reduction in that budget.

Indeed—I am rehearsing my lines for next week.

The total budget across that area was just above £300 million, if you add up all the various schemes that are in play and the funds that are operated. The underspend is about £18 million, so, in the scheme of the £300 million and given that it is a demand-led service, that reflects the fact that 90 or 95 per cent was delivered.

As I said, the targets in relation to the corporate cost savings, which is one part of it, are clear. They have been allocated across the piece. In you look at, for example, the health portfolio through the portfolio lens, you will see that there will be more doctors, more nurses and more spend on various parts of the service, including social care. However, you will also see that the corporate costs are being reduced. Where that sits in the profile of the portfolio at the top level—level 2 or whatever—will depend on the amounts of corporate costs that are in each portfolio; however, there is a very clear focus on the corporate costs and the reductions in each portfolio, and on how they impact the overall budget.

It changes week on week.

That is the policy that we are working to.

Good morning. The Scottish Government’s intended introduction date for the Scottish aggregates tax is 1 April 2026. That is subject to the successful introduction of secondary legislation in Scotland and to United Kingdom Government legislation to disapply the UK aggregates levy in Scotland.

When the Scottish aggregates tax is introduced, Revenue Scotland, which is Scotland’s tax authority for devolved taxes, will be responsible for its collection and management. That is why, in addition to the Scottish Government, Revenue Scotland is represented at this evidence session. Although Revenue Scotland might provide evidence and technical insight today in its capacity as a non-ministerial office, its attendance reflects the collaborative approach that is being taken to support the successful implementation of the tax.

As part of on-going work to commence the Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024, the three Scottish statutory instruments make provision that is required for the practical operation of the Scottish aggregates tax. That includes the provision that is required to ensure that Revenue Scotland has the power, but is not subject to any duty, to operate the register of taxpayers for the Scottish aggregates tax and can undertake voluntary registration of taxpayers from 1 December 2025.

The Scottish Government has engaged extensively with stakeholders on the regulations. We held a public consultation earlier this year on the proposed administration regulations for the Scottish aggregates tax, including the three draft SSIs that are before the committee. My officials engaged with the Scottish aggregates tax expert advisory group on the proposed administration regulations. Established in January 2023, the group has provided expertise in forming the primary legislation and continues to provide expertise on preparations for the implementation of the Scottish aggregates tax, including all secondary legislation.

The SSIs that are under consideration today include the draft Scottish Aggregate Tax (Administration) Regulations 2025, which make provision for the administration and assurance of the Scottish aggregates tax by, for example, setting out permitted methods for determining the weight of aggregate. The regulations also make provision for making returns in respect of accounting periods and for payment of tax, and in relation to claiming tax credits and payment of tax credits.

The draft Revenue Scotland and Tax Powers Act (Record Keeping) Amendment Regulations 2025 make provision for the records that must be preserved by registrable persons and certain parties made exempt from registration under the Aggregates Tax and Devolved Taxes Administration (Scotland) Act 2024.

The draft Revenue Scotland and Tax Powers Act (Postponement of Tax Pending a Review or Appeal) Amendment Regulations 2025 provide that, where a reviewer appeal is in progress, a taxpayer may make an application to Revenue Scotland to postpone payment of tax, penalties or interest in relation to a liability for Scottish aggregates tax or for Scottish landfill tax.

The intention behind the instruments is to support Revenue Scotland’s effective and efficient administration of Scottish aggregates tax, which will contribute to the delivery of high-quality and sustainable public services. I am happy to take questions.