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Scottish Budget Spending Review 2007

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CHAPTER 20: FINANCE AND SUSTAINABLE GROWTH

Table 20.01 Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Scottish Public Pensions Agency

2,661.1

2,661.8

2,659.1

2,660.1

Committees, Commissions and Other Expenditure

28.5

32.3

34.7

57.2

Rail Services in Scotland

638.1

689.2

672.9

667.1

Concessionary Fares

192.4

187.5

189.5

191.5

Other Transport Agency Programmes

291.7

180.9

287.1

256.9

Motorways and Trunk Roads

878.4

932.6

1,063.7

1,181.4

Ferry Services in Scotland

74.4

92.4

105.1

111.0

Air Services in Scotland

42.1

38.2

38.1

38.0

Bus Services in Scotland

57.3

57.2

57.2

57.2

Other Transport Directorate Programmes

67.0

79.6

69.9

58.7

European Social Fund - 2000-06 Programmes

-

-

-

-

European Regional Development Fund -
2000-06 Programmes

-

-

-

-

European Social Fund - 2007-13 Programmes

-

-

-

-

European Regional Development Fund -
2007-13 Programmes

-

-

-

-

Planning

2.5

11.8

5.3

5.6

Enterprise, Energy and Tourism

690.3

687.2

666.9

674.0

Water

181.8

311.8

311.8

311.8

Third Sector

15.1

23.2

32.2

38.2

General Register Office for Scotland

10.3

11.6

15.5

22.1

Registers of Scotland

-

-

-

-

Total

5,831.0

5,997.3

6,209.0

6,330.8

SCOTTISH PUBLIC PENSIONS AGENCY

Table 20.02 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Agency Administration

13.2

13.9

11.2

12.2

Scottish Teachers Pension Scheme

1,161.5

1,161.5

1,161.5

1,161.5

NHS in Scotland Pension Scheme

1,486.4

1,486.4

1,486.4

1,486.4

Total

2,661.1

2,661.8

2,659.1

2,660.1

What the budget does

The Scottish Public Pensions Agency's ( SPPA) principal role is to administer the pensions, premature retirement and injury benefits schemes for employees of the National Health Service in Scotland and for members of the Scottish Teachers' Pension Scheme.

The Agency also has responsibility for developing the regulations covering the National Health Service in Scotland Pension Scheme, Scottish Teachers' Pension Scheme, local government, police and fire pensions schemes in Scotland; for determining appeals made by members of these schemes; and for providing a pension calculation service for the Scottish Parliamentary Pension Scheme and the Legal Aid Board for Scotland. This budget allows the Agency to manage anticipated caseload increases of up to 20 per cent by 2010-11 and to continue to improve the range, quality and efficiency of its customer services.

The pension scheme funding represents the cost of pensions accrued in that year plus notional interest on current liabilities less income received. Pension scheme funding is all Annually Managed Expenditure ( AME).

Budget changes

The minor changes in the Agency Administration budget reflect the continuing cost of implementing the new pensions casework IT systems into 2008-09, which falls off in subsequent years once the implementation process is completed, and the cost of implementing a new payroll system in 2010-11.

COMMITTEES, COMMISSIONS AND OTHER EXPENDITURE

Table 20.03 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Public Service Reform and Efficiency

17.6

17.2

17.2

39.5

Commissions

0.9

1.1

1.1

1.1

Procurement

10.0

13.6

16.0

16.2

Council of Economic Advisers

-

0.4

0.4

0.4

Total

28.5

32.3

34.7

57.2

What the budget does

The Public Service Reform and Efficiency budget provides support for a range of public bodies and reform programmes. The Efficiency and Reform programmes aim to accelerate significant strategic programmes of work to drive efficiencies, reform and productivity in public services in Scotland. The aim is Scotland-wide solutions for smaller, simpler government and improved service to customers. This budget also includes funding for shared services and asset management and other work on efficiency and reform. It includes in 2010-11 a provision of £20 million for preparatory and set-up arrangements in connection with the introduction of a local income tax.

The Commissions budget covers the Standards Commission and Local Government Boundary Commission. The Procurement programme aims to deliver significant value for money savings across the wider public sector as well as the development of a structured and co-ordinated approach to procurement activity, in line with the recommendations of the McClelland report, and consistent with the shared services agenda. The Council of Economic Advisers directly advises the First Minister on tackling Scottish economic underperformance and raising Scotland's economic growth rate.

Budget changes

The increased funding in the Public Service Reform and Efficiency budget in 2010-11 includes additional provision in connection with the proposed introduction of local income tax.

The increases in the Procurement budget of £3.6m/£6.0m/£6.2m will support development of national and central government centres of Procurement Expertise, ongoing roll out of the eProcurement Scotland programme, the Procurement Reform Board and reform programme, the National Management Information project (providing detailed management information on Scottish public sector procurement expenditure) and development of a national advertising portal.

RAIL SERVICES IN SCOTLAND

Table 20.04 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Rail Franchise in Scotland

289.2

312.3

321.0

315.2

Rail Infrastructure in Scotland

348.0

366.0

331.0

331.0

Rail Development

0.9

0.9

0.9

0.9

Rail Small Programmes

-

10.0

20.0

20.0

Total

638.1

689.2

672.9

667.1

What the budget does

The budget supports the delivery of ScotRail passenger rail services in Scotland and required rail infrastructure. The rail infrastructure costs relating to rail services are set by the Rail Regulator.

Budget changes

The Rail Infrastructure budget for 2008-09 increases in line with the settlement for the current control period as determined by the Rail Regulator. For 2009-10 and 2010-11 we expect efficiency gains to be made by Network Rail following the Periodic Review conducted by the Rail Regulator. The franchise budget increases each year with inflation and with funding of targeted service improvements, offset by increasing passenger revenue as a result of these improvements.

Funding has been introduced from 2008-09 onwards to deliver a programme of minor rail improvements, including new and improved stations and interchanges, as well as rolling stock improvements.

CONCESSIONARY FARES

Table 20.05 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Smartcard Programme

3.0

6.1

2.1

2.1

Concessionary Fares

189.4

181.4

187.4

189.4

Total

192.4

187.5

189.5

191.5

What the budget does

The budget provides support for the development and delivery of concessionary travel schemes for older, disabled and young people. The funding provides for bus infrastructure systems to recognise Smartcards. Access to national concessionary travel will be through Smartcards issued as part of the Scottish Citizens' National Entitlement Card project.

Budget changes

The increase in Smartcard funding in 2008-09 is required to roll out delivery of electronic ticketing machinery to bus operators. Once operational, efficiency savings will be achieved in the form of improved validation of bus operator claims.

Concessionary Fares budget reduces in 2008-09 due to lower than anticipated uptake of the Younger Persons scheme.

OTHER TRANSPORT Agency Programmes

Table 20.06 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Transport Information

2.9

2.9

2.9

2.9

Agency Administration Costs

14.5

16.0

16.0

16.0

Strategic Transport Projects Review

2.3

4.3

5.3

7.3

Major Public Transport Projects

272.0

157.7

262.9

230.7

Total

291.7

180.9

287.1

256.9

What the budget does

The Transport Information budget funds the provision of impartial travel information services such as Traveline and Transport Direct.

The Agency Administration budget funds the running costs of Transport Scotland, an agency established to support the delivery of the Scottish Government's £2 billion annual investment in maintaining and improving rail and road networks and concessionary travel schemes in Scotland.

The Strategic Transport Projects Review is the multi-modal assessment of investment needed in land-based transport infrastructure from 2012 to 2022. From 2008-09, detailed design and development of the preferred options will be taken forward.

Funding is provided for Major Public Transport Projects, to proceed with the delivery of major rail public transport projects (e.g. Airdrie to Bathgate, Borders Railway and Glasgow Airport Rail Link) and to contribute to the City of Edinburgh Council's tram project.

Budget changes

The Strategic Transport Projects Review budget increases from 2008-09 onwards to support the detailed design and development stage work of the preferred options identified at that stage.

The Major Public Transport Projects budget reduces in 2008-09 due to the replacement of Edinburgh Airport Rail Link with the cheaper alternative of a surface-level Edinburgh Airport station at Gogar. The budget increases from 2009-10 to support the Edinburgh to Glasgow service enhancements, journey time and emission reductions and improvements in quality, accessibility and affordability as set out in Scotland's Railways.

MOTORWAYS AND TRUNK ROADS

Table 20.07 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Structural Repairs

26.4

26.4

26.4

26.4

Network Strengthening and Improvements

34.0

41.0

41.0

41.0

DBFO Payments

42.0

46.0

48.0

48.0

Routine and Winter Maintenance

51.9

53.0

56.0

59.4

Other Current Expenditure including Surplus Land
Valuation Adjustment

5.6

5.6

5.6

5.6

Roads Improvements

40.3

54.1

56.1

58.1

Cost of Capital

0.1

0.1

0.1

0.1

Capital Land

2.1

2.1

2.1

2.1

Capital Works

123.7

86.8

156.9

210.6

Forth Crossing

-

20.0

25.0

30.0

Roads Depreciation

51.0

51.0

51.0

51.0

Roads' Cost of Capital

501.3

546.5

595.5

649.1

Total

878.4

932.6

1,063.7

1,181.4

What the budget does

The budget will allow further progress to be made on the maintenance and enhancement of the trunk road infrastructure. Major influences on spending are the need to maintain the network in good condition and deliver improvements to safety and traffic flows. It will secure value for money in the delivery of routine, cyclical and winter maintenance to maintain the safety, environment and amenity of the trunk road network, and improve the operation of the trunk road network and the provision of information for road travellers.

The budget will reduce serious and fatal accidents through delivery of road safety improvement programmes and reduce pollution and improve air quality by removing traffic congestion through more efficient traffic movement.

It will allow work to continue on completion of the Central Scotland Motorway Network (M8, M80, and M74), the A90 Aberdeen Western Peripheral Route and improvement schemes on the A68, A75, A77, A9 and A96. It will allow continuing expenditure on the A876 Kincardine Bridge, A68 Dalkeith bypass, A75 (three schemes), A830 Arisaig to Loch nan Uamh and A9 Ballinluig. It will build and enhance transport services infrastructure and networks to maximise their efficiency; and support the continuing maintenance for two inherited Design, Build, Finance, Operate ( DBFO) contracts with 30 km of new motorway constructed on the A74(M) and 15 km of the M77 south of Glasgow.

Budget changes

Excluding the Roads' Cost of Capital, which is classified as Annually Managed Expenditure ( AME), the increases in the budget are £9.0m/£91.1m/£155.2m.

These budget changes will take forward various road improvement works which include the provision of a new traffic control centre and replacement and expansion of existing equipment that will improve information for road travellers.

Capital works expenditure in 2008-09 reflects the current timing of the major roads improvement programme. We remain committed to delivering the planned programme of road capital projects.

We will take forward the design and preparation (e.g. environmental impact assessment, ground investigation, environmental, topographical and traffic surveys) for the replacement Forth Crossing.

FERRY SERVICES IN SCOTLAND

Table 20.08 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Support for Ferry Services

65.2

80.9

83.2

86.2

Vessels and Piers

9.2

6.5

14.4

14.8

Road Equivalent Tariff

-

5.0

7.5

10.0

Total

74.4

92.4

105.1

111.0

What the budget does

The Ferry Services budget covers the subsidy paid for the lifeline ferry services on the Clyde and to the Hebridean and Northern Isles.

The Vessels and Piers budget will allow a major new vessel to be ordered to serve on the routes between the Scottish mainland and Islay and provide support for piers and harbours projects at Largs, Kennacraig, Port Ellen and Rothesay.

The budget for Road Equivalent Tariff will fund the pilot of this approach to ferry fare setting.

Budget changes

The increase in the Support for Ferry Services budget reflects the impact of service enhancements, cost pressures and provision for a new service (Campbeltown to Ballycastle). The budget allocated to vessels and piers reflects the anticipated spending profile associated with planned projects. The Road Equivalent Tariff budget is a new spending line reflecting our commitment to test this new approach to setting ferry fares.

AIR SERVICES IN SCOTLAND

Table 20.09 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Highlands and Islands Airports Limited

24.1

27.1

27.1

27.1

Support for Air Services

18.0

11.1

11.0

10.9

Total

42.1

38.2

38.1

38.0

What the budget does

The budget supports Highlands and Islands Airports Limited which operates 10 airports in the Highlands and Islands. It will sustain the continued operation of airport services throughout the Highlands and Islands. Its operations support the economic and social development of remote and island communities. Resources will be available for residual contractual expenditure for the previous Air Route Development Fund. The budget supports the Air Discount Scheme, providing discounted fares on eligible routes to people whose main residence is in Orkney, Shetland, the Western Isles, Islay and Jura, Caithness and North-West Sutherland. Eligible persons qualify for a discount of 40 per cent of the core fares on scheduled air services between airports within the eligible areas and Glasgow, Edinburgh, Aberdeen and Inverness.

In addition, the budget supports lifeline air services between Glasgow and Barra, and between Campbeltown and Tiree, which cannot be provided commercially.

Budget changes

The Highlands and Islands Airports Limited budget includes resources for capital expenditure required by the regulatory authorities and resources required to operate Dundee Airport which is scheduled to be operated by the company from 1 December 2007. Further resource is provided for the lifeline Public Service Organisation ( PSO) air services which are subject to contractual arrangements due for renewal from 1 April 2009. Support for Air Services is lower because the cost of the Air Route Development Fund is being managed down.

BUS SERVICES IN SCOTLAND

Table 20.10 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Support for Bus Services

57.3

57.2

57.2

57.2

Total

57.3

57.2

57.2

57.2

What the budget does

Bus Service Operators Grant provides support to the bus industry across Scotland by refunding part of the costs of fuel duty which would otherwise result in increased fares. It helps sustain the economy and reduce the environmental impact of increased car travel and reduces the cost to local authorities of supporting non-commercial socially necessary services.

OTHER TRANSPORT DIRECTORATE PROGRAMMES

Table 20.11 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Forth and Tay Road Bridge Authorities

5.8

29.4

20.6

10.7

Support for the Freight Industry

14.7

14.9

14.9

14.9

British Waterways Scotland

11.4

11.6

11.8

12.0

Support for Sustainable and Active Travel

6.6

11.0

11.0

11.0

Transport Strategy and Innovation

26.5

9.7

8.6

7.1

Road Safety

2.0

3.0

3.0

3.0

Total

67.0

79.6

69.9

58.7

What the budget does

The Forth and Tay Road Bridge Authorities budget is to replace toll income following the abolition of bridge tolls in Scotland.

The budget to support the freight industry will fund grants designed to encourage the transport of freight by rail or water rather than road, and allow further progress in delivering the Freight Action Plan.

The grant to British Waterways Scotland will allow it to maintain Scotland's canals in good condition and contribute to the process of economic regeneration.

The budget for Sustainable and Active Travel promotes alternatives to car use and more active forms of travel, particularly cycling and walking, by supporting projects which raise awareness or facilitate sustainable travel choices.

The budget for Transport Strategy and Innovation provides running cost support for regional transport partnerships, the Mobility and Access Committee for Scotland ( MACS), Passengers' View Scotland and support for innovative transport solutions.

The budget funds our strategy policies on road safety, including the development of a ten year road safety strategy.

Budget changes

The budget changes mainly reflect our commitment to end tolls on the Forth and Tay Road Bridges but also reflects increases in a number of other areas including: increased support for British Waterways to maintain the canal network in good condition; increased support for the freight industry to take forward the Freight Action Plan; increased provision for sustainable and active travel to promote alternatives to car use and active travel, particularly cycling and walking; and an increase in road safety to allow delivery of a new road safety strategy.

The reduction in the Transport Strategy and Innovation budget reflects the completion of the 20mph homezones scheme that has achieved its objectives, with some of that provision reallocated to increase sustainable and active travel and to allow provision for supporting innovative transport projects.

EUROPEAN SOCIAL FUND - 2000-06 PROGRAMMES

Table 20.12 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Grants to Local Authorities

14.6

15.8

-

-

Central Government Spend

38.9

47.4

-

-

Grants to Local Authorities - EU Income

-14.6

-15.8

-

-

Central Government - EU Income

-38.9

-47.4

-

-

Total*

-

-

-

-

*These figures net to zero because of matching receipts from the European Union.

EUROPEAN REGIONAL DEVELOPMENT FUND - 2000-06 PROGRAMMES

Table 20.13 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Grants to Local Authorities

37.6

21.4

-

-

Central Government Spend

47.6

64.4

-

-

Grants to Local Authorities - EU Income

-37.6

-21.4

-

-

Central Government - EU Income

-47.6

-64.4

-

-

Total*

-

-

-

-

*These figures net to zero because of matching receipts from the European Union.

EUROPEAN SOCIAL FUND - 2007-13 PROGRAMMES

Table 20.14 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Grants to Local Authorities

6.7

6.6

8.6

8.4

Central Government Spend

17.9

19.7

25.8

25.3

Grants to Local Authorities - EU Income

-6.7

-6.6

-8.6

-8.4

Central Government - EU Income

-17.9

-19.7

-25.8

-25.3

Total*

-

-

-

-

*These figures net to zero because of matching receipts from the European Union.

EUROPEAN REGIONAL DEVELOPMENT FUND - 2007-13 PROGRAMMES

Table 20.15 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Grants to Local Authorities

17.3

10.8

13.9

13.3

Central Government Spend

25.9

32.3

41.6

40.0

Grants to Local Authorities - EU Income

-17.3

-10.8

-13.9

-13.3

Central Government - EU Income

-25.9

-32.3

-41.6

-40.0

Total*

-

-

-

-

*These figures net to zero because of matching receipts from the European Union

What the budget does

We have responsibility for implementing the 2007-13 European Structural Funds programmes in Scotland, principally through the European Regional Development Fund and the European Social Fund, as well as other cross-border and transitional programmes. These contribute to the improvement in Scotland's economic competitiveness through support for business research and innovation, skills improvement and the promotion of lifelong learning across a wide range of sectors. The 2007-13 programmes are administered by two intermediate administrative bodies under three year contracts to the Scottish Government. The 2000-06 programmes end on 31 December 2008.

Budget changes

The amounts included for European Structural Funds relate to the new 2007-13 programmes and are based on the estimated spend likely to be required. The grants for this expenditure are matched by receipts from the European Union.

PLANNING

Table 20.16 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Scottish Building Standards Agency

1.3

2.4

2.6

2.7

Planning

1.2

9.4

2.7

2.9

Total

2.5

11.8

5.3

5.6

What the budget does

Planning covers the funding of the Scottish Building Standards Agency which is responsible for securing the health, safety, welfare and convenience of people in and around buildings; furthering the conservation of fuel and power; and furthering the achievement of sustainable development.

It also covers the programme of modernising the Scottish planning system, following the passage of the Planning etc. (Scotland) Act 2006. Key elements of the planning modernisation programme include: the conclusion of the e-planning project, which will transform access to the planning system and secure substantial savings for users of the system; start-up support for the new Strategic Development Planning Authorities; support for community engagement, principally through funding to Planning Aid for Scotland; and the Planning Development Programme which is designed to ensure the planning services have the skills and competences required to make the system work effectively.

Budget changes

The Planning budget increases by £9.3m/£2.8m/£3.1m. The significant increase for 2008-09 is mainly due to a one-off increase of £6 million in the capital budget for that year for the IT investment in e-planning. The other increases for Planning and Scottish Building Standards Agency reflect the cost of delivering the planning modernisation and enhanced buildings standards priorities described above.

ENTERPRISE, ENERGY AND TOURISM

Table 20.17 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Scottish Enterprise

465.1

448.6

433.8

431.4

Highlands and Islands Enterprise

103.0

91.8

88.8

88.3

Innovation and Investment Grants

52.0

52.0

52.0

52.0

(including Regional Selective Assistance)

Knowledge Exchange and Innovation Policy

5.3

8.0

8.0

8.0

Energy and Climate Change

19.9

33.5

33.0

33.0

Saltire and Horizon Prizes

-

2.0

2.0

12.0

Business Gateway International Trade

0.7

1.7

0.7

0.7

VisitScotland

43.8

47.8

46.8

46.8

European Programme Administration and Consultancies

0.3

1.6

1.6

1.6

Miscellaneous

0.2

0.2

0.2

0.2

Total

690.3

687.2

666.9

674.0

What the budget does

The allocations for the enterprise networks reflect the much tighter operational focus as a result of the reforms announced on 26 September 2007. The figures are stated on a like-for-like basis to allow comparison with previous years. They will subsequently be adjusted by transfer to local government. This will happen once arrangements are put in place for the transfer of responsibility for the Business Gateway delivery and agreement has been reached on the transfer of local regeneration activity. There will also be a transfer of training and skills and Careers Scotland funding when the arrangements for a new skills body have been put in place.

The Innovation and Investment Grants budget includes the SMART:Scotland programme which is the foremost policy instrument to support near-market research and development projects by small and medium enterprises. Regional Selective Assistance, which is the main national scheme of financial assistance to industry, helps to create and safeguard jobs in selected areas of Scotland and accounts for the bulk of this spend. The budget covers commitments made in previous years which are paid in instalments as projects reach milestones. Both grants will in future be delivered by Scottish Enterprise under joint venture arrangements with the government.

The Energy and Climate Change budget provides advice to householders and businesses on energy efficiency, with the objective of reduced energy consumption, carbon savings and the promotion of renewable energy, including microgeneration. This budget also provides grant support for development and deployment of renewable technologies (marine, biomass and hydrogen) and for encouraging the adoption of microgeneration technologies by householders and communities. This has the joint objectives of carbon reduction and the promotion of economic growth.

The Energy and Climate Change budget also includes our contribution to the costs of the UK Committee on Climate Change. This expert advisory committee will advise all UK administrations in relation to statutory emissions reduction targets. It includes research into how best to reduce emissions to help us on the path to a low carbon economy, and to adapt to climate change. It also covers the costs in 2008-09 of the consultation for the Scottish Climate Change Bill.

The Knowledge Exchange and Innovation Policy budget funds a range of innovation activities and provides funding for the Innovators Counselling and Advisory Service for Scotland scheme and the Intellectual Asset Centre. It also supports innovation policy activities carried out under the 1965 Science and Technology Act.

The VisitScotland budget spends £25 million on marketing which directly drives additional tourism revenues of £975 million, plus business tourism and e-business benefits. The remainder of the VisitScotland budget is used to provide information to visitors once they are in Scotland (through over 100 tourism information centres) and to help 20,000 Scottish tourism businesses. Total tourism revenues are worth £4.2 billion a year to the Scottish economy.

Budget changes

The most significant changes for Scottish Enterprise and Highlands and Islands Enterprise reflect their restructuring plans which will reduce running and salary costs over the period. They also include a cut in direct capital funding in line with the enterprise networks' increasing ability to fund capital projects through receipts from asset sales and collaboration with the private sector. Scottish businesses will benefit from the reduction in business rates and this is reflected in the local government settlement.

Significant additional expenditure for Energy includes:

  • the Saltire Prize;
  • tripling spend on community and household renewables;
  • instituting a Scottish Energy Efficiency Award; and
  • a new budget line for Climate Change following the planned establishment of the Committee on Climate Change in 2008-09.

Significant additional expenditure for VisitScotland includes:

  • promotion of the Ryder Cup; and
  • maintenance of their capital estate.

The new expenditure for the European Structural Fund Programme is for programme administration and consultancies and represents, in part, the new arrangements required by the European Commission to fund the administration of the programmes.

WATER

Table 20.18 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Support for Scottish Water Borrowing

181.8

181.8

181.8

181.8

Cost of Capital Charges (net)

-

130.0

130.0

130.0

Total

181.8

311.8

311.8

311.8

What the budget does

The support for the Scottish Water borrowing budget covers the sums to be lent to Scottish Water by Scottish Ministers in support of its capital investment programme. The investment programme for
2006-10 will deliver significant improvements to drinking water quality and the environment.

Budget changes

The borrowing requirements for Scottish Water are determined by the Water Industry Commission, Scottish Water's economic regulator. The borrowing is set at levels which require Scottish Water to deliver services and the investment programme at the lowest overall reasonable cost. Whilst "flat spend" is shown, some variations between one year and the next will occur and will reflect annual variances in the delivery of the capital programme. Borrowing requirements for 2010-11 will be determined in the next Determination of Charges by the Water Industry Commission.

The new budget of £130 million a year for cost of capital charges reflects the move to a full weighted average cost of capital calculation, in line with UK-wide practice.

THIRD SECTOR

Table 20.19 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Third Sector Development

15.1

19.2

22.2

22.2

Scottish Investment Fund

-

4.0

10.0

16.0

Total

15.1

23.2

32.2

38.2

What the budget does

The third sector budget will seek to secure the development of an innovative, sustainable and inclusive third sector, supporting communities to be more cohesive and contributing to high-quality public services and raised economic growth. This will be achieved through a new Scottish Investment Fund which will support enterprise in the third sector by investing in assets, business development and the skills of people working in the sector. The budget will also support volunteering and a series of strategic partnerships with national third sector organisations aimed at building third sector capacity.

Budget changes

The budget increases largely reflect the establishment of the new Scottish Investment Fund.

GENERAL REGISTER OFFICE FOR SCOTLAND

Table 20.20 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Administration Costs

13.1

14.7

18.6

25.1

Capital Charges

1.3

1.3

1.3

1.3

Capital Expenditure

0.6

0.7

0.7

0.8

Less Income

-4.7

-5.1

-5.1

-5.1

Total

10.3

11.6

15.5

22.1

What the budget does

The budget for 2007-08 largely funds the ongoing statutory functions of the Registrar General, which are to conduct censuses and prepare and publish demographic and other statistics; to administer civil registration of vital events (births and deaths, marriages, divorces and adoptions), and the statutes relating to the formalities of marriage and the conduct of civil marriage; to maintain the National Health Service Central Register of patients in Scotland for the Scottish Government; to make available public records about individuals to customers (e.g. genealogists).

The 2007-08 budget also funds an additional objective to open a new joined-up Scottish Family History Research Service on the Register House campus with our partners, the National Archives of Scotland and the Court of the Lord Lyon.

Budget changes

The budget increases from 2008-09 onwards provide the Registrar General with the additional funds necessary to plan, develop and undertake the 2011 Census, in parallel with other censuses in the other parts of the UK.

REGISTERS OF SCOTLAND

What the budget does

The Registers of Scotland Executive Agency is a trading fund and is self-financing from fees (so does not receive direct funding from government). The agency maintains and supplies information from a range of public registers. The main two registers, the Land Register and the General Register of Sasines, are concerned with the ownership of land and property. The public registers play a key role in underpinning the economic and social stability of Scotland. The agency's primary purpose is to provide the people and institutions of Scotland with the social and economic benefits that flow from a publicly-guaranteed system of rights in land and property.