Scotland's Budget: Draft Budget 2017-2018

Chapter 10 Environment, Climate Change and Land Reform

PORTFOLIO RESPONSIBILITIES

Environment, Climate Change and Land Reform is a wide-ranging portfolio that has responsibility for protecting and enhancing the environment, responding to the challenges of climate change and for driving forward land reform. It also includes financial responsibility for Scottish Water and Marine Scotland's operations.

The overarching aim is to protect and promote Scotland's environment and to build a strong and sustainable low carbon economy through:

• maximising the potential of, and enhancing, Scotland's environment and natural resources;
• tackling climate change;
• supporting community empowerment and improving the way that land is owned, used and managed;
• supporting the marine environment; and
• investing in the research base.

OUR PRIORITIES

Environment, Climate Change and Land Reform

Scotland is rich in natural capital. Developing and managing these resources well is vital to supporting a vibrant and strong economy. Currently, Scotland's natural environment is worth more than £20 billion per annum and supports more than 60,000 jobs. Unlocking opportunities will help provide jobs and sustain services for communities across Scotland including new opportunities for marine-related growth and wider rural business.

Within Environment, Climate Change and Land Reform our priorities will be to:

• continue to protect and enhance our world-class natural environment - maintaining our efforts to halt the loss of biodiversity, to restore and enhance our ecosystems and peatland, stop diffuse pollution and minimise greenhouse gases;
• invest in our natural resources to benefit the Scottish economy, the health of our communities and contribute to our ambitious climate change targets; focusing on optimising the way we use our land; ensuring good stewardship and promoting physical activity and the use of green spaces;
• establish the Scottish Land Commission and continue to implement the Land Reform (Scotland) Act 2016;
• continue funding Scottish Natural Heritage and the Scottish Environment Protection Agency in their work to protect Scotland's natural heritage and environment;
• continue to support the work of the Royal Botanic Garden Edinburgh on maintaining its national collections;
• continue to support an independent regulatory function that ensures the quality of Scotland's drinking water;
• continue to support Scottish Water which will invest up to £3.6 billion over the current regulatory period 2015-2021. Investment includes improving and protecting drinking water quality and protecting and enhancing Scotland's environment;
• continue to safeguard and monitor marine and fisheries activity in Scotland's seas, coasts and ports to ensure that national and international regulations are enforced to protect the health of fish stocks and the marine environment;
• ensure that the development and use of the marine environment is undertaken sustainably and aligns to the delivery of the strategic objectives and general policies of the National Marine Plan ( NMP);
• ensure a smooth transfer on devolution of the management and revenue of the Crown Estate and progressing longer-term reform;
• continue to support the five-year strategic research programme to deliver the Rural and Environment Science and Analytical Services research strategy; and
• act to protect our assets and decarbonise our economy. The government's commitment to addressing climate change will be a prominent theme in this Parliament. Our draft Climate Change Plan and an accompanying Energy Strategy will be published in January 2017, outlining our intention to reduce Scottish emissions by 80 per cent between 1990 and 2050. This will represent a bold statement of the government's priorities for the coming decades. In early 2017 we will outline proposals for a new Climate Change Bill to reduce emissions further.

Table 10.01: Spending Plans (Level 2)

Level 2	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Marine	45.8	46.2	52.3
Environmental Services	144.1	147.4	146.1
Research, Analysis and Other Services	67.0	66.5	64.3
Climate Change	19.8	19.4	19.8
Scottish Water	(94.5)	(95.4)	24.5
Total Level 2	182.2	184.1	307.0
of which:
DEL Resource	162.0	163.9	164.2
DEL Capital	20.2	20.2	142.8
AME	-	-	-

Table 10.02: Spending Plans (Level 2 Real Terms) at 2016-17 prices

Level 2	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Marine	45.8	46.2	51.6
Environmental Services	144.1	147.4	144.0
Research, Analysis and Other Services	67.0	66.5	63.4
Climate Change	19.8	19.4	19.5
Scottish Water	(94.5)	(95.4)	24.1
Total Level 2	182.2	184.1	302.6
of which:
DEL Resource	162.0	163.9	161.8
DEL Capital	20.2	20.2	140.8
AME	-	-	-

Marine

Table 10.03 More Detailed Spending Plans (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget,/ £m	2017-18 Draft Budget £m
Marine Scotland	45.8	46.2	52.3
Total	45.8	46.2	52.3
of which:
DEL Resource	45.0	45.4	51.5
DEL Capital	0.8	0.8	0.8
AME	-	-	-

What the budget does

The Marine budget supports the sustainable use of Scotland's marine environment. Marine Scotland is the key body responsible for managing the sea and the activities which impact on it, and in it, with a responsibility for marine planning and licensing of activities in the marine environment - crucially marine renewables, sea fisheries, aquaculture, recreational fisheries and the scientific and evidence base required to support these sectors.

In 2017-18 we will:

• in advance of planned future legislation, pilot modernised structures to enable better national and local management of wild fisheries, which will help establish the foundations for a more secure and sustainable sector;
• continue our support to the growth of marine renewables in Scotland;
• continue to support the sustainable economic growth of Scotland's capture sea fisheries;
• bring forward salmon conservation regulations for the 2017 season and enable a more localised approach by moving current designation of fishery districts towards individual river level assessments;
• continue to support the sustainable growth of aquaculture, working with industry to help support their roadmap to 2030 aspirations;
• implement Scotland's first National Marine Plan to promote the sustainable development of our seas, and meet our international obligations to ensure healthy seas;
• ensure a smooth transfer on devolution of the management and revenue of the Crown Estate through the introduction of interim arrangements and prepare a Bill for longer-term reform; and
• protect rare, threatened, declining or nationally representative species vital to the marine ecosystem through designation of 30 Marine Protected Areas.

Environmental Services

Table 10.04: More Detailed Categories of Spending (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Drinking Water Quality Regulator	0.6	0.6	0.3
Land Reform	10.0	11.1	13.4
Natural Assets and Flooding	9.1	7.9	11.1
National Park Authorities	12.5	12.5	12.4
Natural Resources	4.2	4.7	4.0
Private Water	2.2	2.2	2.1
Scottish Environment Protection Agency	36.6	37.7	35.9
Scottish Natural Heritage	48.4	47.3	46.4
Zero Waste	20.5	23.4	20.5
Total	144.1	147.4	146.1
of which:
DEL Resource	133.6	136.9	133.0
DEL Capital	10.5	10.5	13.1
AME	-	-	-

What the budget does

The Environmental Services budget invests in: the delivery of a high quality environment for Scotland; promoting the environment as a driver of health, wellbeing and sustainable economic growth; and helping to ensure that land is owned, used and managed in the interests of the people of Scotland. The budget also directly supports public bodies dedicated to protecting and promoting Scotland's environment and supports responsible authorities in their work to reduce flood risk.

In 2017-18 we will:

• continue to support the Scottish Environment Protection Agency ( SEPA), Scottish Natural Heritage ( SNH), our National Parks and the Central Scotland Green Network in their work to protect and promote the enjoyment of Scotland's environment and unique natural heritage;
• continue to support and encourage the increase in community land ownership in Scotland - including through the £10 million Scottish Land Fund - establish the Scottish Land Commission and implement further land reform measures;
• continue to implement our Circular Economy strategy 'Making Things Last' and provide support, through Zero Waste Scotland, to cross-government initiatives to reduce food waste, improve recycling and support business opportunities in bioeconomy, manufacturing, construction and energy, all with the ultimate objective of reducing emissions;
• work with our partners, including the public, to deliver on the first ever round of flood risk strategies protecting communities across Scotland; and to deliver through River Basin Management Plans improvements to Scotland's water environment and associated benefits for communities, businesses and the public;
• continue to implement the Cleaner Air for Scotland strategy and its cross‑government agenda for promoting air quality;
• work with our key delivery partners to meet our European and other international obligations and targets for biodiversity; and
• continue to manage invasive and non-native species and combat wildlife crime, addressing especially the consequences of irresponsible behaviour associated with raptor persecution.

Research Analysis and Other Services

Table 10.05: More Detailed Categories of Spending (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Contract Research Fund	4.5	4.5	3.5
Economic & Other Surveys	1.4	1.3	1.4
Programmes of Research	49.8	49.4	48.1
Royal Botanic Garden Edinburgh	11.3	11.3	11.3
Total	67.0	66.5	64.3
of which:
DEL Resource	58.1	57.6	55.4
DEL Capital	8.9	8.9	8.9
AME	-	-	-

What the budget does

The Research Analysis and Other Services budget funds a portfolio of strategic knowledge exchange and expert advice on a wide range of rural and agricultural topics including the natural environment, crop and livestock science, animal welfare, and the rural economy. This research also provides critical insights into complex global challenges such as food security and climate change that help inform policy development. Funding from this budget helps maintain science innovation and excellence. It also supports critical infrastructure and research assets, including collections of national and international importance.

In 2017-18 we will:

• support the second year of the 2016-2021 five year strategic research programme to deliver the Rural and Environment Science and Analytical Services ( RESAS) research strategy;
• continue to seek efficiencies, impact and leverage from research; and
• continue to support the work of the Royal Botanic Garden Edinburgh.

Climate Change

Table 10.06: More Detailed Categories of Spending (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Land Managers Renewables Fund	3.0	3.0	2.0
Climate Change - Policy Dev & Imp	1.1	1.1	1.1
Sustainable Action Fund	15.7	15.3	16.7
Total	19.8	19.4	19.8
of which:
DEL Resource	19.8	19.4	19.8
DEL Capital	-	-	-
AME	-	-	-

What the budget does

The Climate Change budget supports the portfolio's climate change coordination work including adaptation and mitigation policy while significant budgets elsewhere across government also support the delivery of our climate change ambitions. The Sustainable Action Fund supports people in communities, both at home and in some of our African partner countries, to take action on climate change. In addition, the budget provides resources for the Land Managers' Renewables Fund.

In 2017-18 we will:

• continue to lead work to support the delivery and achievement of the Scottish climate change targets, and other work to support implementing the requirements of the Climate Change (Scotland) Act 2009 and the forthcoming Climate Change Bill;
• continue the work of the Sustainable Action Fund ( SAF), which includes supporting community-led action and work to influence low carbon behaviours across Scotland;
• continue to support organisations and communities across Scotland in adapting to a changing climate; and
• continue to offer funding for the Community and Renewable Energy Scheme ( CARES) loans for rural businesses to address the costs associated with the pre-planning stage of renewable energy projects for farmers and land managers.

Scottish Water

Table 10.07: More Detailed Categories of Spending (Level 3)

Level 3	2016-17 Draft Budget £m	2016-17 Budget £m	2017-18 Draft Budget £m
Exemption Scheme	2.0	2.0	1.0
Hydro Nation	4.0	3.1	4.0
Interest on Voted Loans	(100.5)	(100.5)	(100.5)
Voted Loans	-	-	120.0
Total	(94.5)	(95.4)	24.5
of which:
DEL Resource	(94.5)	(95.4)	(95.5)
DEL Capital	-	-	120.0
AME	-	-	-

What the budget does

The Scottish Water budget builds on Scottish Water's track record of investment, with Scottish Water continuing to invest up to £3.6 billion over the rest of the current 2015‑2021 regulatory period. Projects in every part of the country support economic growth - providing water and sewerage services for new housing and businesses as well as improving the environment, drinking water and customer service standards. In particular, this period will see major investment in Glasgow to modernise the sewerage network and address long-standing surface water management issues. We will continue to make lending available to support this vital investment programme. Further, the budget will help grow Scotland's water economy through Scottish Water International and the Hydro Nation Programme and through working with SDI to support international trade with the global water sector.

In 2017-18 we will:

• expect to complete the Shieldhall Tunnel project at over £100 million, bringing environmental improvement to the River Clyde and reducing sewer flooding risk in South Glasgow; and
• deliver the Ayrshire resilience scheme at over £120 million bringing a more secure, higher quality drinking water supply and supporting economic growth in the region.