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The Scottish Government, through Transport Scotland’s Trunk Road Casualty Reduction programme of works, is undertaking road safety investigations on the A75 by Mouswald, Glenluce and Twynholm. These investigations are programmed to be completed by the end of the 2024-25 financial year.

Ministers recognise the crucial role that our colleges play and notably, the Audit Scotland report recognises that the courses that college students undertake contribute not only to their own development but also to Scotland’s sustainable economic growth.

Against a challenging backdrop of financial pressures across the public sector, a priority has been to protect investment in the college sector as far as possible. It is the responsibility of each college to manage its operations in line with the funding allocated by the Scottish Funding Council (SFC). As part of this we expect each institution to continually reassess operational models and explore avenues for cost reduction and revenue maximisation in this demanding climate.

We are committed to work alongside colleges and the SFC through the Tripartite Alignment Group to provide greater flexibility for institutions in how they use the investment that is available. The SFC has proposed modifications to the college funding model to provide short-term relief to colleges and has expressed plans to revamp the funding model for future sustainability; while Scottish Government has progressed work on college disposals in order to help deliver flexibilities to colleges in their approach to managing their estate.

The Audit Scotland report recognises there are important opportunities coming from reform. As we progress with reform, we will work closely with colleges and other stakeholders to ensure that they have a sustainable future.

The Scottish Government, through Transport Scotland’s Trunk Road Casualty Reduction programme of works, is delivering improvements at the A75 Haugh of Urr junction. Construction of static sign improvements, relating to advanced direction signage and rationalisation of existing signage, is currently programmed for November 2024. An electronic vehicle-activated sign system to warn drivers of vehicles turning or waiting to turn at the junction is also proposed at the junction. This may be delivered this financial year subject to the approval of a non-prescribed sign application.

A key condition of the agreement for the Scottish Government to move to a 35-hour week was that productivity levels are maintained, and that costs are not increased as a result. These conditions are consistent with the findings of research into shorter working weeks, which point towards the wellbeing benefits of such improvements to terms and conditions and, in some cases, even positive impacts on productivity.

The Scottish Government’s position is that the 3% (of which 2.25% was in-year) pay award for 2024-25, alongside the introduction of the 35-hour week, does represent good value for money. Both elements formed part of a two-year pay deal, which was reached during a period of high inflation, and is consistent with pay awards reached across the Scottish Public Sector. Achieving agreement on pay with the recognised trade unions for this extended period has also meant the Scottish Government has avoided the costly impacts of industrial action.

Caring for our peatlands, and reducing peatland emissions, through protection, management and restoration is critical to achieving net zero by 2045.

Through the Peatland ACTION partnership we are funding the restoration of our peatlands. We are also working hard with our Peatland ACTION delivery partners to tackle the many barriers to upscaling peatland restoration in this relatively young sector

In addition to interventions on herbivore control as well as other farm management interventions, we are also considering the regulatory and fiscal measures that could further incentivise peatland restoration and create the conditions to keep our peatlands in good condition.

Alongside this, work continues towards implementing a ban on the sale of peat in Scotland and we have established an expert group to develop the guidance and tools needed to inform decisions on windfarm development on peat.

Following the publication of draft Orders, Transport Scotland received four objections to the proposed A90/A937 Laurencekirk Junction Improvement scheme, including one from Aberdeenshire Council following its decision to close the existing Oatyhill Bridge to vehicular traffic.

Transport Scotland has been undertaking comprehensive engagement with all those who objected to the scheme proposals including that of Aberdeenshire Council and this work has successfully resulted in all objections now being removed.

Whilst resolution of the final objection represents a significant milestone for the scheme, it is necessary to publish supplementary Orders for a new bridge at Oatyhill. This is required to address the decision of Aberdeenshire Council to close the existing Oatyhill Bridge to vehicular traffic. Work is being progressed by Transport Scotland to prepare and publish these supplementary draft Orders as a priority.

It is important to note that whilst all objections to the scheme have been removed the supplementary draft Orders will carry their own statutory consultation period and should further objections be received then these would have to resolved before proceeding.

Delivery of the scheme itself can only commence when the scheme is approved under the relevant statutory authorisation procedures and thereafter a timetable for construction can be determined in line with available budgets.

Public sector pay continues to be a significant driver of in-year pressures and, under the current devolution settlement, any substantive in-year pressures can only be funded by reductions elsewhere. If the UK Government does not fully fund public sector pay deals, there will be a significant gap between the expectations of the workforce and the available funding.

As confirmed in the Fiscal Statement to the Scottish Parliament on 3 September, the Scottish Government has identified a range of measures to support the 2024-25 budget totalling almost £1 billion, of which up to £500 million are direct savings. Correspondence with the Convenor of the Finance and Public Administration on 3 September, confirmed that the impact of these measures has been appropriately assessed, including in formal impact assessments where required.

In relation to local authority pay awards, the Scottish Government has agreed with local government that they can draw on specific existing programmes to fund pay deals. The relevant funding will be replaced in 2025-26 and assurance has been sought from local authorities to confirm that they are able to mitigate any impacts in 2024-25 and that delivery timescales will not be significantly impacted.

The introduction of drop off charges, their level and their terms and conditions are a matter for individual airports. We expect airport operators to comply with equalities legislation in all aspects of their operations, including in relation to drop off charges and providing support for disabled passengers arriving at an airport.

As I told Parliament on 3 September, this Government has consistently warned of the significance of the financial challenge ahead. In the face of this challenge, the Scottish Government has stepped in to support people and services where it has been needed most – on social security, health, and public services and as set out in our 2024-25 budget, we have delivered a real-terms uplift for the NHS.

However, given the circumstances, the amount allocated to external affairs was reduced in the Scottish Budget published for 2024-25, from £27.051 million to £26.283 million . The continuing uncertainty about additional funding and further in-year pressures have required that more action is taken now to ensure that we can balance the budget, which has required difficult choices. Regrettably, the amount allocated to mental health services has also been reduced. This reduction has been identified through programmes being adapted, or which have come to an end. However, we remain committed to taking forward our work across mental health, working closely with key partners. Through the overall 2024-25 budget, NHS Boards and the Scottish Government will continue to spend in excess of £1.3 billon on mental health.