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Scottish Budget Spending Review 2007

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CHAPTER 24: RURAL AFFAIRS AND THE ENVIRONMENT

Table 24.01 Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

EUCAP Support for Farmers

-

7.4

6.5

5.7

Rural Development and Other Services

144.1

146.1

145.5

145.8

Research, Analysis and Other Services

111.7

112.0

116.3

119.1

Marine and Fisheries

54.3

65.6

71.0

70.8

Natural Heritage

82.1

81.3

84.2

86.4

Environment Protection, Sustainable Development and Climate Change

44.1

103.9

111.3

117.5

Water Quality

9.3

9.3

8.6

8.6

Forestry Commission Scotland

56.3

64.3

67.6

70.3

Forest Enterprise Scotland

27.7

26.0

26.2

26.3

Total 1

529.6

615.9

637.2

650.5

Notes:
1 The baseline total shown for 2007-08 is depressed by adjustments between the RAE and local government portfolios.

European Union Common Agricultural Policy SUPPORT FOR FARMERS

Table 24.02 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Single Farm Payment Scheme

433.6

433.6

433.6

433.6

Scottish Beef Cattle Scheme

21.0

21.0

21.0

21.0

Energy Crop Area Payments

0.1

0.1

0.1

0.1

Proteins Premium Area Payments

0.3

0.3

0.3

0.3

Payments and Inspections Administration Costs 1

-

7.4

6.5

5.7

EU Income

-455.0

-455.0

-455.0

-455.0

Total 2

0

7.4

6.5

5.7

Notes:
1. Following the establishment of the Rural Payments and Inspections Directorate ( RPID) £23.9 million a year of Administration Budget resources will be transferred to the RAE Portfolio from 2008-09.
2. Budgets shown do not reflect the sums which will be paid to beneficiaries which will be subject to deductions for EU and National modulation of CAP payments.

What the budget does

The EU Common Agricultural Policy ( CAP) Support resources provide the main means of supporting the contribution made by agriculture businesses to local economies. Spending is funded entirely from the European Guarantee Fund ( EGF). Under EU rules, spending in each Member State is subject to fixed ceilings denominated in Euros. The actual level of spending in the UK and Scotland in any year is influenced by movements in the sterling/euro exchange rate. The Rural Payments and Inspections Directorate ( RPID) performs the functions of the accredited European Union ( EU) Paying Agency responsible for all EU Farm Support spending in Scotland.

Budget changes

The budget (previously titled CAP Support) includes provision for RPID costs of administering the schemes for which a transfer of £23.9 million a year will be made in due course from the Administration budget. The additional allocations made here from 2008-09 make up for the previous shortfall in provision for these costs, which has been made up each year since 2005-06 by in-year savings from other portfolio spending.

RURAL DEVELOPMENT

Table 24.03 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Less Favoured Areas Support Scheme*

61.0

61.0

61.0

61.0

Rural Development Contracts* 1

74.7

99.4

107.2

108.2

Food Processing and Marketing and Co-operation* 2

10.2

10.2

10.8

10.9

Revitalising Rural Communities* 3

5.7

5.2

5.8

6.1

Skills Development*

1.0

2.6

3.0

3.2

Technical Assistance* 4

0.4

1.0

0.3

0.3

Crofting Counties Agricultural Grant Scheme*

3.2

3.0

3.0

3.0

Rural Cohesion

1.0

0.8

0.9

0.9

Crofters Commission

3.1

3.5

3.6

3.7

Croft House Grants Scheme 5

2.7

0.8

0.8

0.8

Farm Business Advice

1.0

1.5

1.5

1.5

Public Good Advice

3.0

3.3

3.0

3.0

Veterinary Surveillance

4.0

4.6

4.7

4.8

Animal Health, Livestock and Veterinary Services

1.5

3.1

2.4

2.4

Crops and Plant Health

0.3

0.3

0.3

0.3

Other 6

1.5

2.1

2.1

2.1

EU Income and funding receipts from the DEFRA

Rural Payments Agency

-30.2

-56.3

-64.9

-66.4

Total

144.1

146.1

145.5

145.8

Notes:
1. Rural Development Contracts consists of new Land Managers' Options and associated measures, Rural Priorities and associated measures. It also includes legacy payments under the previous Land Management Contract, Rural Stewardship and Organic Aid Schemes and those under the Farm and Agriculture Business Development Schemes, Environmentally Sensitive Area Schemes, the Countryside Premium Scheme, the Habitats Scheme, Farm Woodland Premium Scheme, the Farm Woodland Scheme and the Scottish Forestry Grants Scheme/Farmland Premium.
2. Food Processing and Marketing and Co-operation Scheme includes payments to be made under the new SRDP, as well as remaining payments under the now closed Highland and Islands and Lowland Marketing schemes.
3. Revitalising Rural Communities provides the LEADER component of the new SRDP.
4. Technical Assistance provides the budget for development of Rural Gateway, monitoring and evaluation.
5. Expected outturn in 2007-08 is £1.2 million and includes loans under the Crofters, etc, Building Grants and Loans Scheme, which closed to applications on 31 December 2004.
6. Other includes expenditure on the domestic Marketing Development Scheme, Support for the Scottish Agricultural Organisation Society, Publicity and Support for Agricultural Training.
* These items are co-funded by the EU directly or from the modulation of EU Farm payments and are part of the Scottish Rural Development Programme ( SRDP). EU Income and funding receipts from the DEFRA Rural Payments Agency include the component of European funding from the European Fund for Rural Development (including proceeds from EU compulsory modulation of CAP Farm payments) and National modulation. The plans assume funding from rates of National modulation of 5% in 2007, 8% in 2008, 8.5% in 2009 and 9% from 2010.

What the budget does

The Rural Development resources support the contribution of agriculture and forestry businesses to local economies and the unique needs of those living and farming in Crofting areas. Spending assists the agriculture industry in responding to changes resulting from CAP reform, largely through measures which form part of the EU Scotland Rural Development Programme ( SRDP) submitted to the European Commission for approval in June.

The SRDP includes significant continuing support for livestock producers in Scotland's remote hills, through the Less Favoured Areas Support Scheme ( LFASS). Support also continues for a range of measures to sustain farming communities in crofting areas; for improved advice to farm businesses and to build or improve crofter housing; and for rural community initiatives.

Budget changes

Net DEL spending on SRDP measures is maintained at previously planned levels while growth in gross spending is made possible by the planned increases in rates of National modulation.

RESEARCH, ANALYSIS AND OTHER SERVICES

Table 24.04 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Scottish Agricultural College

14.5

17.0

21.6

17.8

Scottish Agricultural and Biological Research Institutes

44.3

53.1

55.3

60.6

Royal Botanic Garden, Edinburgh

11.9

16.7

12.0

12.3

Contract Research Fund

6.3

7.4

8.4

8.4

Pensions 1

23.7

6.7

7.6

8.5

Scottish Agricultural Science Agency ( SASA)

9.4

9.4

9.7

9.8

Economic and Other Surveys

1.4

1.5

1.5

1.5

Other

0.3

0.3

0.3

0.3

EU Income

-0.1

-0.1

-0.1

-0.1

Total

111.7

112.0

116.3

119.1

Notes:
1. Reduced budget from 2008-09 reflects the transfer of pension liabilities to the UK Research Council's Pension Scheme.

What the budget does

The Research, Analysis and Other Services (previously titled Agricultural and Biological Science and Other Agricultural Services) resources fund programmes of research from the portfolio's main research providers - the four Scottish Agricultural and Biological Research Institutes ( SABRIs) and the Scottish Agricultural College ( SAC). The resources also support the SAC in respect of a range of education courses.

The Royal Botanic Garden, Edinburgh ( RBGE) maintains and carries out research on a national reference collection of living and preserved plant material and a major library of botanical works, as well as providing public amenity at its main and satellite gardens.

The Contract Research Fund (previously titled the Flexible Fund for Research) commissions research contracts which address our specific policy requirements or which encourage collaboration between research establishments and between the Directorate and other funding bodies.

The Scottish Agricultural Science Agency ( SASA) discharges a wide range of our statutory and regulatory functions in relation to national, EU and other international legislation and agreements on plant health, variety registration, crop improvement, genetically modified organisms and the protection of crops, food and the environment.

The balance of resources here includes pensions-related provision for SAC/ SABRI staff.

Budget changes

With its Budget for 2008-09 the portfolio will continue to sponsor the RBGE and the education function of the SAC, and commission programmes of research from its main research providers. The budget will also fund additional research on the environment and climate change. Exceptional provision is included for Capital investments by both SAC and the SABRIs and for the completion of the new Gateway Visitor Facility at the RBGE.

MARINE AND FISHERIES

Table 24.05 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Fisheries Research Services

26.4

29.5

33.7

32.3

Scottish Fisheries Protection Agency

21.8

24.4

24.7

25.0

Fisheries Processing and Marketing Grants

11.5

10.6

9.8

11.1

Fisheries Harbour Grants

0.4

0.4

0.4

0.4

Marine Management

-

7.0

7.9

8.7

Other

0.3

1.1

1.0

1.0

EU Income

-6.1

-7.4

-6.5

-7.7

Total

54.3

65.6

71.0

70.8

What the budget does

The Marine and Fisheries (previously titled Fisheries) resources support fisheries and marine management, contributing to local economies and the conservation of marine resources. The marine aspects of the portfolio are underpinned by high-quality science from the Fisheries Research Services ( FRS), and enforced by the Scottish Fisheries Protection Agency ( SFPA).

Support is also provided, through a range of measures, for the fisheries and aquaculture sectors and in support of wider marine policies. Provision is made for remaining spending under the now closed EU Financial Instrument for Fisheries Guidance ( FIFG) Programme and for new spending under the successor European Fisheries Fund, as well as related domestic back-up grant schemes. These schemes support investments in the fishing fleet, fisheries marketing and processing, port facilities and aquaculture projects. Provision is made also for grant assistance for fisheries harbour improvements.

Budget changes

The funding for 2008-09 will continue to support the work of FRS and the SFPA. FRS provides scientific advice on marine and freshwater fisheries, aquaculture and protection of the aquatic environment and its wildlife. The additional funds will ensure the continuation of the FRS collaborations with a number of Scottish universities, and the Science/industry Partnership.

SFPA enforces UK, EU and other international fisheries legislation in Scottish fishing waters and in ports around Scotland. The additional funding for SFPA will ensure a continued high level of fisheries enforcement, based on the substantially upgraded marine and air capability in recent years.

The European Fisheries Fund is due to open for applications in 2008-09, which will be a transition year. While the overall level of funding from Europe will be lower than for the previous programme, the Fund will continue to support fisheries, aquaculture and processors in Scotland.

Scotland has an enviable maritime heritage and a world-class marine environment. We are committed to Scottish marine legislation to achieve better protection for the marine environment and more streamlined regulation of the use of the sea. Substantial additional funds are available to support the new legislation and to put in place new planning arrangement for our seas. The funding will also support the Scottish Marine Management Partnership in developing systems to implement the new legislation, and to support projects and management arrangements ahead of the Bill under existing legislation.

The additional marine funds will also support the implementation of the Scottish Freshwater Fisheries Strategy, and a renewed Aquaculture strategy.

NATURAL HERITAGE

Table 24.06 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Scottish Natural Heritage

68.2

67.2

69.7

71.4

National Parks

12.1

12.3

12.7

13.1

Deer Commission for Scotland 1

1.8

1.8

1.8

1.9

Total

82.1

81.3

84.2

86.4

Notes:
1. Provision for the Deer Commission for Scotland was previously included in the Agricultural and Biological Science and Other - now Research, Analysis and Other Services- budget.

What the budget does

The Natural Heritage budget supports the commitment to conserve and promote our valuable landscapes and habitats. The work to strike a balance between conservation and improvement of the natural heritage on the one hand, and promotion of its enjoyment on the other, is achieved by: Scottish Natural Heritage ( SNH) in biodiversity, conservation and the promotion of access; by the National Park Authorities ( NPAs) in delivering the National Park aims in their areas; by local authorities through the planning of core path networks; and by the Deer Commission for Scotland ( DCS) in the conservation, control and sustainable management of deer in Scotland.

SNH's primary focus will be on delivering Scotland's contribution to the EU Gothenburg Commitment to halt biodiversity loss by 2010, increasing the proportion of protected nature sites in favourable condition and increasing the proportion of the population accessing the countryside. Funding during 2008-09 will support SNH's work on the delivery of our biodiversity targets, the promotion of access and the promotion of sustainability in planning of economic activities.

SNH's funding also includes £2 million which will be allocated to the Scottish Rural Development Programme to support viable farming and other land-based businesses, and rural communities. It also includes Scotland's contribution to the Joint Nature Conservation Committee ( JNCC) which advises all UK administrations and nature conservation bodies on common issues.

Funding for the National Park Authorities will enable them to take forward the National Park Plans which were approved in early 2007.

Funding for the Deer Commission for Scotland will enable it to support the protection of designated sites of national and international importance, supporting the delivery of our biodiversity targets through promotion of effective and sustainable deer management throughout Scotland. Forestry Commission Scotland ( FCS) also makes important contributions to both nature conservation and access targets.

Budget changes

Reprioritisation by SNH will allow a modest reallocation to cover additional National Parks Authority non cash resource costs.

ENVIRONMENT PROTECTION, SUSTAINABLE DEVELOPMENT AND CLIMATE CHANGE

Table 24.07 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Scottish Environment Protection Agency

36.4

49.5

39.2

40.3

Zero Waste 1

-

41.1

54.4

58.7

Flood Prevention and Coast Protection

1.7

1.7

1.7

1.7

Water Environment

0.8

0.8

0.8

0.8

Noise and Air Quality Action

1.0

2.1

4.4

5.0

Sustainable Development and Climate Change

4.2

8.7

10.8

11.0

Total 2,3

44.1

103.9

111.3

117.5

Notes:
1. Zero Waste now includes provision for the Strategic Waste Fund, Keep Scotland Beautiful and Waste Initiatives.
2. This Level 2 combines the previous Environmental Protection and Research and Sustainable Action Level 2s. Provision for environmental research, previously held in the latter of these, is now held in the Rural and Environmental Research and Analysis Level 2.
3. For comparative purposes, the figures shown for 2007-08 exclude provision for: the Strategic Waste Fund; Flood Prevention and Coast Protection; Contaminated Land; and Noise and Air Quality which will be transferred to the local government budget in 2008-09.

What the budget does

The Environment Protection, Sustainable Development and Climate Change budget supports actions to deliver cleaner air and rivers, reduction in and more sensible disposal of waste and protection from other environmental hazards, and supports delivery of our greener Strategic Objective, including action on climate change.

Provision is made to enable the Scottish Environment Protection Agency ( SEPA) to carry out its regulatory functions and to continue to safeguard Scotland's environment and human health through effective control of harmful pollution. SEPA's spending is largely determined by the need to implement and enforce regulatory regimes required by national and EU legislation. Resources also allow it to monitor the quality of Scotland's environment and to implement provisions of the Water Environment and Water Services (Scotland) Act. Provision for SEPA includes support for the development of a flood warning system.

Provision is made to assist implementation of the National Waste Plan. This includes support for programmes to develop markets for recyclate, waste minimisation, waste awareness, support for community recycling groups and for Keep Scotland Beautiful, which carries out anti-litter and anti-fly tipping campaigns and promotes environmental education. This provision is complementary to the funding transferred to local authorities' budgets for the diversion of waste from landfill.

The funding provided for flood prevention and coast protection supports initiatives on flood risk management and research to assist policy development in these areas.

The Sustainable Development and Climate Change (previously Research and Sustainable Action) budget supports demonstration projects and delivery on Greener programmes including sustainable places, consumption and production, enjoyment and protection of our environment, communication and learning, capacity building and public sector as exemplars and a Climate Challenge Fund.

Budget changes

Recycling services currently funded by the Strategic Waste Fund will in future be supported through the local government settlement. The Waste provision remaining in the RAE portfolio will ensure continued growth in spending in support of our waste targets.

Additional provision has been made to allow SEPA to deliver the Water Framework Directive, to implement an EU bathing waters quality prediction system and deliver other statutory requirements. Exceptional provision has been made in 2008-09 to build a new office for SEPA in Aberdeen and provision is also made to allow development and new flood awareness schemes. The additional resources will enable the continued roll-out of the EU Environmental Noise Directive and a support for Vehicle Emissions Testing and Air Quality Monitoring.

WATER QUALITY

Table 24.08 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Private Water

9.0

9.0

8.2

8.2

Drinking Water Quality Regulator

0.3

0.3

0.4

0.4

Total

9.3

9.3

8.6

8.6

Note:
Provision for Scottish Water borrowing is now included within the Finance and Sustainable Growth portfolio.

What the budget does

The Water Quality (previously Water) budget supports actions to sustain and improve the health of the people of Scotland through the provision of good safe drinking water.

Provision is made to protect the quality of private drinking water supplies through the preparation of information and advice aimed at improving public understanding of how to protect and maintain such supplies. This is supported by the Private Water Supply Grant Scheme, which provides financial assistance to users of private water supplies towards the upgrade of these supplies.

Provision is also made to support the Drinking Water Quality Regulator for Scotland ( DWQR) in carrying out their duties under the Water Industry (Scotland) Act 2002.

Budget changes

Provision is made for improved co-ordination of data gathering by scrutiny organisations, in order to reduce the burden on local authorities. This will be achieved by developing the DWQR's existing data warehouse to provide a central resource containing information on all drinking water abstractions and supplies across Scotland. This information will be made available to other scrutiny organisations thereby reducing overall requests and eliminating duplicate requests to local authorities for data.

From January 2008, DWQR will impose a new event reporting system on Scottish Water. This will make the drinking water quality event reporting process more efficient, thereby reducing the resource required by DWQR to manage events and incidents affecting the quality of public drinking water supplies in Scotland. This efficiency saving will allow the development of a quality management system for DWQR.

FORESTRY COMMISSION SCOTLAND

Table 24.09 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Woodland Grants 1

21.0

21.0

21.0

21.0

Policy, Regulation and Administration 1

7.8

8.6

8.8

9.2

Programme Costs

10.4

17.6

19.2

20.6

Net Capital Expenditure

2.0

2.0

3.5

4.4

Capital Charges 1

15.1

15.1

15.1

15.1

Total

56.3

64.3

67.6

70.3

Notes:
1. £21 million is part of the EUSRDPDEL funding total of £149 million per year and is net of EU co-financing.

What the budget does

The Forestry Commission Scotland regulates and supports the private forestry sector, promotes the expansion and sustainable management of Scotland's woodlands, supports projects which reduce the impact of timber transport operations on public roads and on communities, contributes to the Scottish Climate Change Programme, and increases the contribution of woodlands to the quality of our towns and cities through the Woodlands In And Around Towns ( WIAT) initiative.

Budget changes

The additions to the Programme Costs budget delivers increased activity on climate change, new work to enable the development of short-rotation coppice crops for biofuel and new spend on rural management contracts.

FOREST ENTERPRISE SCOTLAND

Table 24.10 Detailed Spending Plans 2008-11

2007-08
Budget
£m

2008-09
Draft Budget
£m

2009-10
Plans
£m

2010-11
Plans
£m

Operating Costs

23.4

21.7

21.7

21.7

Net Capital Expenditure

1.3

1.3

1.3

1.3

Capital Charges

3.0

3.0

3.2

3.3

Total

27.7

26.0

26.2

26.3

What the budget does

The Forest Enterprise Scotland ( FES) budget supports the sustainable management of the national forest estate, maintains effective planning and consultation systems, maximises the value to the Scottish economy of the estate's timber resource, other forest products and estate assets, conserves and enhances the biological diversity and cultural heritage values of the estate, improves the appearance of the estate, and increases the opportunities for everyone to enjoy and benefit from visits to the estate.

Budget changes

Efficiency savings will enable the Commission to reduce operating costs.