Chamber and committees

On the financial stability of local government, we have talked in the past about where we are and how confident the Scottish Government is that it has the data that it requires to assess the financial stability of local authorities. We have also talked in the past about the debt and the reserve levels of local authorities.

Given the pessimistic outlook from the Local Government Information Unit’s recent survey, which gave us concern, what are the Scottish Government’s views on local government when it comes to the debt and reserves that specific councils have and their financial sustainability? It is a major issue for local authorities that what they can deal with depends on what they have in their reserves. Some have large reserves and some have very little, but all councils seem to have debt.

Good morning, minister. Looking at the targets and the funding strategies that we have had, I note that, between 2021-22 and 2023-24, only £575 million of the £1.3 billion for energy efficiency and the decarbonisation of buildings was spent. Why was that budget underspent by more than 40 per cent?

In the draft 2025-26 budget, you have allocated a sum of £349 million for energy efficiency and decarbonisation. You have indicated that the previous money was not spent but that you will try to continue to fund the budget line and spend the money that is left. Now you are allocating another £349 million. Can you tell us how that money will be spent to maximum effect and how you can ensure that the budget is fully spent? At the end of the day, that is what we are trying to achieve. You can allocate funding, but if it is not used and then you allocate more, the question is this: how effective is that? How do we fully spend the sums of money that you are allocating?

How does local government play its role in just transition and net zero, given the conditions of existing infrastructure? We have to manage with ageing schools, libraries, council buildings, leisure centres and road networks. Are councils sufficiently funded to take the action that is required to meet the targets in 2045?

Thank you. I know that time is tight, convener.

Good morning, cabinet secretary. Much has been made of the welcome funding in the proposed budget, but every organisation and individual that we have heard from has said that it is too little, too late. It will not stop the rot and it will not deal with the fact that confidence and trust in the sector are at an all-time low. Over the past few weeks, we have heard from individuals and organisations that the pay awards, the reduction in the working week, the increase in national insurance contributions and the building maintenance backlog will mean that libraries, venues, theatres and museums will all struggle to survive, let alone thrive, even with the additional funding that is proposed.

The sector is still not managing to progress. This morning, you have provided information about other organisations, many of which are pioneers. They must deal with the reality of having to do less. They might have to close or decrease in size and pay off people. That will happen in the sector in the foreseeable future.

Good morning. Individuals and organisations have said that the re-election of Donald Trump does not change much of the position that we find ourselves in, but that it does change the outlook and the opportunities that might have existed in the past. That is because Mr Trump is no longer as sympathetic to the UK Government as he might have been in his first term of office. That leaves institutions and individuals in a little bit of a dilemma as to how to manage things.

Moreover, some believe that securing deeper trade relations with the US would jeopardise some of the proposed reset with the EU, because the new UK Government wants to see a reset with the EU and Donald Trump would be against that. That might create some difficulties for the new Westminster Government when it comes to relations.

However, we should consider the fact that Trump will seek to deal with tariffs—we have already had the threat of tariffs being imposed—and, if there was to be any negotiation, we might want to align with the idea of putting more tariffs on China, which could benefit the UK in some ways.

It would be good to hear the views of you learned individuals about that and what it could mean. I do not believe that the reset with Europe will do anything other than turn the American President against the United Kingdom, because of the way that that is perceived in relation to what might happen in the future generally and particularly over the next three or four years. Maybe Peter Holmes could answer first.

I welcome the fact that Dame Sue Bruce has been appointed to deal with the review. During the past few months and years, we have heard that Creative Scotland has not been fit for purpose in relation to some of the ways in which it has managed the organisation and continues to do so. I hope that the review will be balanced and provide the opportunity to look at that. As you rightly indicate, cabinet secretary, we should all participate in the process and give our views and opinions.

The governance and scrutiny of, and confidence and trust in, Creative Scotland have been diminished because of its deeds and actions in the sector. It has not always taken advice from the professional bodies and the individuals who manage and co-ordinate things, and I hope that that will change as we go through the review. Whether Creative Scotland survives or another arts organisation takes its place, I hope that we can be confident that it will work hand in hand with the organisations and our outstanding performers. In recent times, there has not be much respect for the organisation within the sector, which has been and continues to be a problem.

Within that envelope, you still have to manage the maintenance and the fabric of the buildings; you still have to meet the costs of the pay awards, which is an issue that I have asked about previously; and then you have to ensure that people attend and support your cultural activities, that they continue to bring in revenue and finances, and that you have the support mechanisms in place to manage all of that. However, when you have to touch on all of those things, huge clouds of potential difficulty can arise with regard to what can be achieved financially in the short to medium term.

Thank you.