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The challenging funding landscape and difficult choices facing the Scottish Budget in coming years have only worsened since publication of the Resource Spending Review. As a result of inflation, the Scottish Government’s budget is now worth around £1.7 billion less than when it was published in December.

It is clear that Fair Work, including fair pay, is more important than ever in the context of the cost of living crisis, and we will use all the levers we can to support those most affected.

In the current economic climate, we recognise, most recently in the publication of the Emergency Budget Review, that there are a number of cost pressures on Scottish Government budget and associated contracts including inflation, energy costs and increases to the real Living Wage. We have undertaken a risk-assessment of our key current contracts and framework agreements and are working closely and sensitively with suppliers through this period to manage those contracts.

We understand the importance of fair and stable funding for the third sector and the benefit of this for longer term planning and development. As we continue to work through the impact of the recent and upcoming UK Government announcements on our ability to deliver the spending plans as set out in the Spending Review in May. We are also considering the appropriate level of detail and timing of financial information we can provide in the longer-term.

The Scottish Government does not have policy control over VAT rates or VAT exemptions. This is a fully reserved policy.

In a letter of 22 October 2021, the Cabinet Secretary for Finance, Kate Forbes, and the Cabinet Secretary for Economy, Fair Work and Culture, Fiona Hyslop, jointly called on the UK Government to reverse their decision to end VAT-free shopping following EU Exit. The letter called on the UK Government to introduce a VAT-free shopping scheme for EU and non-EU visitors to the UK.

The UK Government, as part of their ‘Mini Budget’ on 23 September 2022 announced the introduction of a new digital VAT-free shopping scheme. This however was scrapped as part of the reversal by the Chancellor Jeremy Hunt.

The Scottish Government’s position remains that the restoration of VAT-free shopping for all overseas visitors to the UK would help support Scotland’s retail sector.

The new rules put Scottish and UK-wide businesses at a disadvantage when compared to other European destinations who continue to operate VAT refund schemes.

Ultimately, the Scottish Government believes that all tax powers should be devolved to the Scottish Parliament so that we can provide the support that Scottish retailers and tourism businesses need.

This information is not held centrally by Scottish Government but Scottish Fire and Rescue Service staff absence information is publicly available on the website SFRS under their People Committee meeting papers.

The Scottish Government allocated £1,255,953.00 for Area Based Schemes to be designed and delivered by Orkney Council in 2022-23. The Scottish Government allocated £1,324,703.00 for Area Based Schemes to be designed and delivered by Shetland Council in 2022-23.

PACE support is usually delivered face to face, often in an employer’s premises, in addition to support which is available through the PACE Helpline and through online resources. PACE webinars and pre-recorded content were a newly introduced service in 2021 to enhance online resources in response to restrictions on face to face support due to the pandemic and to enable PACE support to continue to be provided to individuals affected by redundancy. Clients who had engaged with these new services reported very high levels of satisfaction. However as reported in the PACE Client Experience Survey 2022, https://www.gov.scot/collections/partnership-action-for-continuing-employment-pace/ , approximately half of clients surveyed would prefer face-to-face service delivery (45% to 64% for each service).

Webinars are promoted in PACE materials and are available to book through My World of Work at https://careers.myworldofwork.co.uk/career-advice/facing-redundancy/pace-webinars#/ . PACE Advisers promote the webinars and a promotional toolkit has also been produced and issued to key partners including DWP to enable information to be provided to relevant customers. Details of webinars are regularly promoted through SDS social media channels and feature as events during specific weeks, for example during Challenge Poverty Week (3-9 October) and during Scottish Careers Week (7-11 November). We will continue to promote the webinar programme widely as an additional PACE service for those clients who prefer to access support digitally.

I refer the member to the answer to question S6W-11654 on 9 November 2022. All answers to written Parliamentary Questions are available on the Parliament's website, the search facility for which can be found at https://www.parliament.scot/chamber-and-committees/written-questions-and-answers

The Scottish Government has used the powers at its disposal to build a fairer and more progressive Income Tax system in Scotland that raises vital additional revenue for the Scottish Budget. This has helped us commit to investing £2 billion for climate action in the 2022-23 Budget, alongside a clear commitment in the Resource Spending Review to prioritise public spend to deliver climate action over the course of this parliament.

We are committed to working across society to deliver lasting action that secures a just transition to a climate resilient, net zero Scotland - one that delivers on our social, economic and climate goals to build a better and more equal Scotland. Our Framework for Tax, published in December 2021, sets out our goals for a fairer, greener and more prosperous Scotland for everyone. Amongst other strategic aims, the Scottish Government has committed to use the tax levers at our disposal to deliver a sustainable and inclusive economic recovery and support new, good green jobs, businesses and industries for the future.

Decisions on tax policy for 2023-24 will be set out in the Scottish Budget, which will take place on 15 December. We will reflect on the recommendations in this report, alongside engagement with a broad range of stakeholders, in setting our tax policy for the year ahead.

After competitive tender, a contract was awarded to Anderson Anderson & Brown LLP to obtain expert independent advice on the implications of VAT on the NCS and associated Care Boards. This work is ongoing. No decisions have been made at this point and a full understanding of the impact of all options will be considered.

Transport Scotland are conducting a transparent evidence – based review of the A96 corridor which will report by the end of this year.

The Scottish Government recognises that the COVID-19 pandemic lockdown measures that were necessary to take have been particularly challenging for those with sensory loss. The Communities Mental Health and Wellbeing Fund for adults has provided £36 million since 2021 to grassroots community groups to tackle the impact of social isolation, loneliness and mental health inequalities, including nine projects for people with sight loss. We have also worked with local authorities and transport providers to ensure that people with sight loss have still been able to access travel since the pandemic. In addition, Active Scotland is working to support everyone to be more active, with specific activity for people with sight loss funded through Paths for All.

Through our ‘See Hear’ strategy, the Scottish Government is committed to supporting children and adults who have deafness, sight loss and dual sensory loss to access the services and social care they need. See Hear is currently under review, and a refreshed strategy will be published in 2024.