Seòmar agus comataidhean

Assessing the future needs of places, in collaboration with communities, is a core part of the local development plan process and infrastructure needs should be considered early in the process as part of an evidence based approach.

We continue to engage closely with COSLA and Heads of Planning Scotland to understand the pressures faced by the planning service, including skills shortages, and to promote a highly performing system.

Along with other key stakeholders including Partners in Planning we will develop a skills strategy which will identify the specialist skills required to address the requirements of National Planning Framework 4, and the wider skills required to ensure we have planners with the expertise to deliver on our ambitions for Scotland.

In 2022 we commissioned work on the pipeline of new planners coming into the system. The research report is available at Future Planners Project Report (rtpi.org.uk) . We are working with the Royal Town Planning Institute Scotland and Heads of Planning Scotland to implement the report’s recommendations, and will focus on this as we move forward with delivery of NPF4.

The forthcoming development planning guidance will set out the various stages in plan preparation.

The Scottish Government does not plan to develop a strategy to tackle pensioner poverty. We already work closely with partners, including through the Older People’s Strategic Forum on a range of issues related to age equality. This includes the Strategic Action Framework ‘A Fairer Scotland for Older People, in which Ensuring Financial Security is a priority area. In addition, the forthcoming Human Rights Bill will include provision for older people.

Our Cost of Living website contains dedicated information on the support available for older people, including benefits and travel.

The Medium-Term Financial Strategy (MTFS) (most recently published in 2021) ( The Scottish Government's Medium Term Financial Strategy - gov.scot (www.gov.scot) ) sets out the revenue finance models available to the Scottish Government. The mutual investment model (MIM) is considered alongside a range of financing approaches including capital grant, capital borrowing, financial transactions and other forms of finance when determining how to finance projects. The approaches are regularly reviewed to ensure the best value for money.

The Scottish Government continues to engage with the UK Government as part of the forthcoming Fiscal Framework Review. The scope and timings of the review are subject to agreement with the Chief Secretary to the Treasury.

The review must ensure the Scottish Government and Parliament has the necessary powers to manage the risks we face within our devolved responsibilities, and to support economic recovery.

The Medium-Term Financial Strategy (MTFS) (most recently published in 2021) ( The Scottish Government's Medium Term Financial Strategy - gov.scot (www.gov.scot) ) sets out the range of funding available to the Scottish Government to invest in infrastructure, including revenue finance models. As part of the National Infrastructure Mission commitment, the Scottish Futures Trust (SFT) were commissioned to examine new privately financed profit-sharing schemes. SFT assessed different funding models (such as evolved Private Finance Initiatives, financial transactions and MIM variations) against their ability to deliver additional investment, value for money, affordability, investor interest and financial risk. More information on the analysis performed by SFT can be found here: sftoptionsappraisalreportlowres.pdf (scottishfuturestrust.org.uk) .

The Scottish Futures Trust also supports the Scottish Government in considering the range of sources of finance and their relative merits for different types of infrastructure investment– a summary of which can be found in Appendix 5, here:

NPF4_Draft_3.QXP_Layout 1 (scottishfuturestrust.org.uk)

The Scottish Government annually update and publish information relating to Private Finance Initiative (PFI) and Non-Profit Distributing (NPD) contracts which is available from the following link www.gov.scot/npd/pfi .

In addition, the Scottish Futures Trust (SFT) have published several guidance notes relating to the operational management of these contracts which are available from their website at the following link www.scottishfuturestrust.org.uk/operational-ppp

The Scottish Government also has a transparent approach to the delivery of infrastructure projects that reports on the progress of major projects every six months to Parliament. Our major projects reporting shows how projects progress from proposal to detailed design and costing to procurement and subsequent delivery. Our major projects reporting is published and available from the following link www.gov.scot/infrastructure/projects

The NPD model replaced the PFI model in 2010 and although not used for new projects since 2018, NPD improved documentation as unlike PFI, most commercial information in NPD contracts was published two years after the asset was completed rather than the twenty-five years that older PFI contracts envisaged. NPD standard contracts were also more flexible than PFI allowing public bodies to make small changes or use agreed contracted rates to price changes. Further information on NPD contracts is available from the SFT’s website at the following link www.scottishfuturestrust.org.uk/contracts

The only private finance approach currently available is the Mutual Investment Model (MIM), which will be restricted to deployment by the Scottish Government, its agencies and Non-Departmental Public Bodies. This route was identified by SFT in response to the request to identify a profit sharing, privately financed infrastructure investment route that could be added to the range of public sector funding and financing routes. SFT published the Options Appraisal on the use of MIM which is available from their website at the following link www.scottishfuturestrust.org.uk/mim .

The deployment of MIM is currently being explored by the Scottish Government.

Local authorities determine their own programmes for capital investment and are required by legislation to comply with The Prudential Code for Capital Finance in Local Authorities, which was developed by the Chartered Institute of Public Finance and Accountancy (CIPFA). The Prudential Code requires local authorities to ensure that all capital investment decisions are prudent, affordable and sustainable.

The Scottish Government have no plans to propose the use of private finance for any new local authority led infrastructure projects. As a government however, we are committed to ensuring that existing private finance contractual obligations are delivered and that contracts are affordable. That is why we have asked the Scottish Futures Trust (SFT) to work with public bodies to realise contract management improvements including re-scoping services, sharing in insurance cost savings, and optimising the risk transfer in contracts. SFT have published several guidance notes in relation to operational contract management which are available from their website at the following link www.scottishfuturestrust.org.uk/operational-ppp

As the first mission orientated investment bank in the UK, the Scottish National Investment Bank was established to respond to the need for long term ‘patient’ capital investment in Scotland. This means support for innovation and the creation of new markets where private investors are not yet ready to act.

The Missions, which were agreed across Parliament, are designed to steer the activity of the Bank into areas facing considerable challenge. The missions for the Bank are:

• Achieving a Just Transition to net zero carbon emissions by 2045
• Extending equality of opportunity through improving places by 2040
• Harnessing innovation to enable our people to flourish by 2040

As the Bank operates independently, how they set out their investment strategy in order to achieve these missions is a matter for the Bank to decide.

To highlight an individual investment as an example, in January 2022 the Bank invested £35 million into the expansion of Aberdeen Harbour. This expansion allowed greater land and water access for offshore wind developers. The increased capacity will also play a vital role delivering the supply chain benefits of the ScotWind leasing round, supporting the Bank’s mission to achieve a just transition to net zero.

The Scottish National Investment Bank’s investment portfolio is funded directly by the Scottish Government through the use of Financial Transactions. Financial Transactions (FTs) are loans from HMT with interest and repayable over an agreed period. They must go ‘beyond the public sector boundary’ and are used for by a variety of Scottish Government portfolios, such as Higher Education, Enterprise bodies, Transport, Energy, Housing and Digital, etc. Due to the structure of these transactions, the Bank currently cannot lend to any aspect of the public sector.

There are no immediate plans to alter from the existing model operated by the Bank towards either investing into the public sector or issuing bonds.

The Scottish Government annually update and publish information relating to Private Finance Initiative (PFI) and Non-Profit Distributing (NPD) contracts and their associated unitary charge payments. This information is collated from the relevant procuring public sector bodies including local authorities and published on the Scottish Government website at the following link www.gov.scot/npd/pfi