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We shall continueto measure the rate of small business start-ups nationally. The seven GovernmentEconomic Strategy targets and the 45 National Indicators and Targets which accompanythe Scottish Budget Spending Review 2007 include Indicator 2 on businessstart-ups.

Further detailsare given in the TechnicalNotes for the 2007 Spending Review,published on 30 November 2007, which may be found at:

www.scotland.gov.uk/Publications/2007/11/30090722/0.

As part of our commitmentto the 2017 Solidarity target we will be monitoring changes in income inequalityand developing an understanding of their causes.

We will take prudentfinancial decisions in the light of financial circumstances as they prevail. Decisionson future spending plans and their prioritisation will only be made if additionalresources become available. Our spending plans are set out in the Scottish Budget:Spending Review 2007 and make full use of the resources currently availableto the Scottish Government. A commitment to accelerate reductions in business rateshas been given in that document.

Any decision onthe level of additional resources that would be required to accelerateimplementation of the Small Business Bonus Scheme would depend on additionalresources becoming available from budget or pre-budget report consequentials orother sources. Decisions would also need to be taken in the light of conditionsprevailing at the time and the need to exercise prudent and responsiblefinancial management.

The allocation ofall the grants and funding streams listed under the heading of ring-fenced in2008-09 in table 17.02 will remain the responsibility of the ScottishGovernment.

The currentbaselined provision for all of the grants and funding outlined in table 17.02has been included in the 2008-11 local government finance settlements. Thegrants listed as ring-fenced in 2008-09 will remain as separately identifiableand the remainder rolled up into the general settlement.

For those fundingstreams being rolled up into the local government finance settlement, under theproposed agreement between the Scottish Government and local government, localauthorities will commission services which may have previously been funded bycentral government, such as those provided by Third Sector organisations. Thiswill provide an opportunity for local service delivery organisations, includingcommunity partners and voluntary organisations, to build closer relationshipswith local commissioners and work together to meet the needs of the localcommunity and deliver on the national outcomes.

In view of the very tight spending review settlement from the UK Government the degree of flexibility available to us will be much less than in the past. The known balance of end-year flexibility money is already fully committed to support our spending plans as set out in the Scottish Budget: Spending Review 2007.

As set out in theSpending Review document we have secured an unprecedented agreement with the UK government to make full use of Scotland’s EYF balances held by HM Treasury over the spendingreview period. Details of the balance held on account are published annually byHM Treasury. The 2007-08 year end balance is expected to be published in July2008.

Once the SmallBusiness Bonus Scheme is fully implemented, we will be in a position to assessits impact on increasing sustainable economic growth. We currently have nospecific plans to monitor that impact at local authority level.

I refer themember to the answer to question S3W-6508 on 27 November 2007. All answers to written parliamentary questions areavailable on the Parliament's website, the search facility for which can befound at http://www.scottish.parliament.uk/webapp/wa.search.