Scottish Budget 2020-2021

Chapter 10: Transport, Infrastructure and Connectivity

Portfolio Responsibilities

The Transport, Infrastructure and Connectivity portfolio is responsible for both physical and digital connectivity and infrastructure, working with the public, private and third sectors and with local communities.

The Transport, Infrastructure and Connectivity (TIC) portfolio is responsible for energy policy and delivery; for transport policy and strategy; for City Region and Growth Deals and for implementation of the Islands (Scotland) Act 2018 through the National Islands Plan. It includes Transport Scotland, the Scottish Government's national agency with responsibility for delivery of transport policy and strategy, public transport services, transport infrastructure including the trunk road network, accessibility and active travel and transport's contribution to the development of a low carbon economy. This also entails the sponsorship of a number of public bodies.

The portfolio contributes to all the National Outcomes that form part of the National Performance Framework by undertaking these responsibilities which underpin the effective functioning of our economy and society.

Energy responsibilities include development of, and investment in, renewables; transport policy; strategy and delivery; broadband and mobile policy, infrastructure and investment; City Region and Growth Deals; and implementation of the Islands (Scotland) Act 2018 through the National Islands Plan.

The portfolio leads on strategic infrastructure planning - through the Infrastructure Investment Plan - and have established the Infrastructure Commission for Scotland. The infrastructure Commission has already published its first phase report 'A Blueprint for Scotland' covering the right priorities for the years ahead. It is vital that the right infrastructure investments are made that support sustainable places, generate inclusive economic growth and that will help to achieve net-zero emissions by 2045. Further detail on our Infrastructure and Investment priorities is set out in Chapter 3.

Transport Scotland sponsors Caledonian Maritime Assets Limited; David MacBrayne Limited; Highlands and Islands Airports Limited; Scottish Canals; and the Scottish Road Works Commissioner.

Portfolio Priorities

Our overarching priority is to ensure sustainable and inclusive economic growth across all of Scotland by providing the transport, energy and digital infrastructure and connectivity that communities need to deliver real economic and social benefit, whilst protecting our climate and environment, and improving lives across our urban, rural and island communities. Our aim is to support the creation of a highly-digitised, low carbon economy and addressing climate change and reducing emissions is at the heart of our planning, budget and delivery processes. The National Transport Strategy (NTS) sets out our framework for transport strategy around four priorities: reducing inequalities; taking climate action; help deliver inclusive economic growth; and improving our health and wellbeing. Our Digital Strategy sets out how we will use digital connectivity to deliver economic growth, reform public services and prepare future workforce. The Scottish Energy Strategy articulates six energy priorities for a whole-system approach around the use and supply of energy for heat, power and transport.

We will do this through the following activities:

• implementing a new National Transport Strategy which will focus on cutting carbon emissions across all modes of transport and reducing inequalities;
• taking forward the second Strategic Transport Projects Review (STPR2) to make recommendations for transport investment in the context of the priorities of the new National Transport Strategy and in line with the sustainable Travel and Investment hierarchies;
• supporting economic development in cities and their regions through the Scottish Cities Alliance, City Region Deals and other mechanisms;
• committing to 100 per cent coverage of Scotland by Growth Deals;
• continue to support the independent Infrastructure Commission for Scotland, which will, by the middle of 2020, provide a second report on the delivery of infrastructure, including the potential for the role of a Scottish infrastructure company;
• producing a new infrastructure Investment Plan for the next 5 years, focusing on three core long-term outcomes of inclusive economic growth, tackling the global climate emergency and building sustainable places;
• enhancing Scotland's digital connectivity through investment in digital and mobile infrastructure and support for new technologies;
• extending superfast broadband access to every home and business across Scotland, making Scotland the best place in the UK to invest in digital infrastructure;
• working with island stakeholders to implement the National Islands Plan;
• ensuring that public services, policies and strategies are 'island proofed' so that the needs of island communities are fully considered; and
• providing an ambitious and broad package of investment in heat decarbonisation and renewable energy.

Digital Connectivity priorities

World-class digital infrastructure is vital to delivering social, economic and environmental benefits to all of Scotland - enabling innovation, helping to reduce travel, opening up employment and leisure opportunities and addressing isolation and remoteness. Enhanced digital connectivity across all of Scotland will be a driver for sustainable and inclusive economic growth and a key enabler of tackling climate change and transitioning to a low carbon economy. Our key focus is on investing in digital infrastructure to extend access to superfast broadband to every home and business in Scotland and improve 4G mobile coverage.

In 2020-21 we will carry out the following activities:

• commence the roll-out of the Reaching 100% (R100) programme that, alongside commercial deployment, will extend superfast broadband access to every home and business in Scotland;
• continue delivery of the Scottish 4G Infill Programme with future-proofed new mobile masts in rural 'not-spot' areas;
• establish the Scotland 5G Centre to drive forward our 5G Strategy, create a Scotland-wide approach to 5G Rural First and support 5G deployment;
• continue to enable commercial investment in digital and mobile infrastructure through our 10-year 100 per cent non-domestic rates relief on newly commissioned fibre, by making it easier for telecoms operators to house equipment on public sector sites, and reforming the planning system; and
• establish Scotland as a green data hosting location and use Internet of Things (IoT) and other data-driven technology to help create a low carbon economy by driving innovation and efficiency across government and the wider economy.

Energy priorities

Scotland's Energy Strategy^[1] sets out the Scottish Government's vision for a flourishing, competitive energy sector, delivering secure, affordable, clean energy for Scotland's households, communities and businesses. The strategy established six priorities to deliver that vision: efficiency; renewable and low carbon solutions; oil and gas industry contributions; innovative local energy systems; consumer engagement and protection; and system security and flexibility.

Through the Heat Transition Deal, we will accelerate and scale-up action to reduce emissions from homes and buildings by supporting delivery of low carbon heat infrastructure projects, including heat pumps and heat networks. Investment will continue in renewable and low carbon energy sources, such as marine energy, hydrogen and bioenergy to provide the foundation of our future energy system and offer Scotland significant opportunities for sustainable and inclusive economic and industrial growth.

In 2020-21 we will:

• support implementation of the Energy Efficient Scotland route map and transition programme in a drive to make our homes and buildings warmer, greener and more energy efficient;
• continue to invest in offshore and onshore wind, hydro, wave and tidal energy projects that have the potential to curb global emissions and help develop Scottish supply chains;
• invest in hydrogen and carbon capture, utilisation and storage (CCUS) which could have a positive effect on Scotland's emissions;
• continue support for the Scottish Government's Community and Renewable Energy Scheme (CARES) and delivery of energy consents in Scotland;
• develop low carbon infrastructure projects and enhance support through the Low Carbon Infrastructure Transition Programme (LCITP), including non-domestic energy efficiency and heat networks and the development of innovative financial mechanisms to encourage investment in low carbon infrastructure;
• deliver, via the Energy Investment Fund, flexible investment and debt funding for low carbon energy projects in Scotland which will facilitate and accelerate Scotland's transition to a net zero economy, especially those with a community energy focus; and
• support the oil and gas sector in reducing emissions and maximising the opportunities for Scotland, continue support for decommissioning supply chain activity in the North Sea and invest in a net-zero solution centre which has its aim of enabling the North Sea to become the first net zero hydrocarbon basin in the world.

City Region and Growth Deal priorities

The Scottish Government wants all of Scotland to benefit from City Region and Growth Deals. These seek to drive sustainable and inclusive economic growth throughout the country and to further develop regional economic partnerships to represent every community in Scotland. Each deal is tailored to maximise the value from the economic strengths and opportunities of its region. Funding has been allocated to continue the commitment to the City Region and Growth Deals already agreed and progress the deals in development. This investment will benefit all of Scotland, creating thousands of jobs and up-skilling local labour markets.

Four city region deals are in delivery: Glasgow, Aberdeen, Inverness and Edinburgh. Heads of Terms have been agreed for Stirling and Clackmannanshire, the Tay Cities, the Ayrshires and the Borderlands, and work is underway to conclude full deals for these areas. Dialogue continues on agreeing deals for Moray, Falkirk, Argyll and Bute, the Western Isles, Orkney and Shetland.

Together, these deal commitments, since 2014, add up to over £1.8 billion from Scottish Government for deals and associated investment. £2.185 billion has been committed by regional partners, with £1.422 billion committed by UK Government over the next 10-15 years.

In 2020-21 we will:

• continue to support agreed City Region Deals to deliver the outcomes agreed for Glasgow, Aberdeen, Inverness and Edinburgh;
• secure full agreed City Region Deals for Stirling and Clackmannanshire and for the Tay Cities Region as well as Growth Deals for the Ayrshires and the Borderlands;
• progress with our 100% commitment by continuing to progress discussions on Growth Deals for Moray, Argyll and Bute, Falkirk and the Islands; and
• support the development of a Scotland-wide network of Regional Economic Partnerships which will learn from, and build on, the foundations laid by City Region Deals.

Rail Services priorities

Scotland's rail network is key to helping deliver a low carbon economy and decarbonising transport in Scotland. We will continue our significant investment in Scotland's railways to support a safe and high-performing railway through the delivery of new and better services, new and refurbished trains, and substantial improvements to the infrastructure to increase capacity and reliability.

In 2020-21 we will:

• publish an action plan to decarbonise Scotland's railways by 2035, focusing on electrification, supported by development and testing of alternative technologies including procurement of battery electric trains and development of hydrogen powered trains;
• continue to press the UK Government for full devolution of powers over both track and train so we can run Scotland's railways in a way which best meets Scotland's needs;
• enhance the passenger experience with the completion of Glasgow's Queen Street station, creating a 21st-century space with longer platforms and greener, faster trains;
• develop infrastructure improvements on key routes including Aberdeen to Inverness, the Highland Main Line, the Far North Line and the West Highland Line;
• progress schemes such as Levenmouth and Aberdeen to Central belt, bringing even more rail improvements to passengers communities and businesses;
• continue developing future projects for the period 2019 to 2024 and beyond;
• continue the introduction of 26 refurbished High Speed Trains to operate on inter-city routes, with 40 per cent more seats on those routes;
• support redevelopments planned for Aberdeen, Inverness and Stirling stations and the delivery of new stations at Kintore, Dalcross, Reston and East Linton; and
• encourage freight modal shift to rail through our work with businesses and the logistics industry.

Concessionary Fares and Bus Services priorities

Maintaining concessionary fares policy ensures some of our most vulnerable citizens benefit from bus travel, helping to reduce social isolation and improve physical and mental health and wellbeing. Bus travel has a key role to play in decarbonising transport and cutting transport emissions and in connecting communities and enabling employment.

In 2020-21 we will:

• continue to provide concessionary travel for older and eligible disabled people;
• introduce companion cards for eligible disabled children aged under 5;
• extend concessionary travel to recipients of the young carer grant;
• begin rolling out investment of over £500 million in bus priority infrastructure to tackle the negative impact of congestion on bus services, improve bus journey times and raise bus usage;
• progress the bus aspects of the Transport (Scotland) Act 2019, working with local transport authorities and others to give a wider range of options to improve bus services across Scotland;
• continue to support bus services and the use of greener, less-polluting vehicles;
• support public transport operators and local government with smart ticketing and payment services and promotion to encourage increased use of public transport;
• deliver round two of the £2 million challenge fund to support the testing of Mobility as a Service in Scotland, facilitating growth and innovative digital solutions; and
• continue to implement Scotland's Accessible Travel Framework, working towards our ambition of having a fully accessible public transport system that enables disabled people to travel with the same freedom, choice, dignity and opportunity as all other citizens.

Active Travel, Low Carbon and Other Transport Policy priorities

In 2020-21 we will:

• publish the National Transport Strategy (NTS) delivery plan;
• consult on future plans for transport and take forward the second Strategic Transport Projects Review so that future investment decisions deliver the priorities of the new National Transport Strategy and help to reduce inequalities and prioritise active and low carbon travel;
• increase our investment in active travel to £85 million, enabling the delivery of high quality walking, wheeling and cycling infrastructure and support work to encourage more people to choose active and sustainable travel;
• continue activity to phase out new petrol and diesel cars and vans in Scotland by 2032;
• work to create the conditions to phase out the need for petrol and diesel cars from the public sector fleet by 2025 and remaining petrol and diesel vehicles by 2030;
• support uptake of zero emission vehicles by expanding Electric Vehicle (EV) charging infrastructure across Scotland and initiatives such as our Low Carbon Transport loan, which will include used vehicles for the first time;
• support innovation to stimulate markets so that consumers, business and industry harness the opportunities from zero emission mobility in local and international markets;
• continue to support the Mobility Access Committee for Scotland and Disability Equality Scotland to host and develop the accessible travel hub to provide disabled people with information on accessible travel;
• support the operation of Scotland's canals and the benefits that canals bring to Scotland;
• continue to fund transport journey data information provision;
• promote measures to transfer freight from road to rail and sea, including forestry and whisky;
• support Regional Transport Partnerships and the Scottish Road Works Commissioner; and
• support delivery of Scotland's road safety framework through Road Safety Scotland.

Motorways and Trunk Roads priorities

In 2020-21 we will:

• through the next Strategic Transport Projects Review, make recommendations for transport investment which prioritises maintaining and then making best use of existing assets before identifying opportunities to invest in appropriate new and enhanced infrastructure;
• continue to increase the resilience of Scotland's trunk road network to adapt to a changing climate and unplanned events such as flooding and high winds, including by investment in major infrastructure projects which deliver improved road safety, journey time and reliability;
• plan and deliver strategic transport resilience for major events including the Conference of the Parties Climate Change Conference (COP 26) to be held in Glasgow in November 2020;
• continue to maintain the trunk road network in line with international best practice, investing in essential road maintenance schemes, bridge strengthening programme and ancillary assets;
• invest in Intelligent Transport Systems including the Connected and Autonomous Vehicle (CAV) Forth trial of an autonomous bus service on trunk roads between Fife and Edinburgh;
• work with local authorities to support implementation of the Glasgow Low Emission Zones (LEZs) and to prepare for introduction of LEZs into three other cities by 2020;
• begin assessment of other Air Quality Management Areas for LEZ mitigation;
• progress design and development work on dualling the A9 and A96 and continue to progress construction of the A9 dualling Luncarty to Birnam project;
• progress construction of the A90/A96 Haudagain Improvements, A77 Maybole Bypass and improvements on the A9 at Berriedale Braes; and
• progress design and development work on a range of projects including improvements to the A82 between Tarbet and Inverarnan and projects related to city deals in respect of the grade separation of Sheriffhall Roundabout on the A720, Longman Roundabout on the A9/A82 and also at Laurencekirk on the A90.

Ferry Services priorities

In 2020-21 we will:

• continue to support ferry services on the Clyde and Hebrides and Northern Isles routes, recognising that these are 'lifeline services' for Scotland's islands;
• implement the next Northern Isles Ferry Services contract;
• maintain low fares on the Clyde and Hebrides Ferry Services routes, freeze islander passenger and car fares on services between Orkney, Shetland and Aberdeen and seek to further reduce passenger and cars fares on ferry services to and from Orkney and Shetland;
• continue to support inter-island ferry services;
• provide grant support for priority harbour projects on the Clyde and Hebrides network, including those at Tarbert (Harris), Lochmaddy, Uig and Ardrossan;
• develop and implement the vessel and port investment programme to enhance connectivity to and between Scotland's islands;
• progress design of a new vessel for Islay to enable the award of a shipbuilding contract;
• progress a new passenger vessel design and suitable berthing facilities for the Gourock-Dunoon service, as part of the Gourock Harbour renewal project; and
• begin work on a new Ferries Plan as part of the second Strategic Transport Projects Review.

Air Services priorities

In 2020-21 we will:

• support Highlands and Islands Airports Limited (HIAL) in maintaining and operating its airports;
• continue to fund the Air Discount Scheme to help make air travel more affordable for those living in the most remote communities;
• continue to support the air services connecting Barra, Campbeltown and Tiree with Glasgow; and
• continue to enhance Scotland's connectivity with the rest of the world through supporting development of new routes which are important for Scottish businesses and our tourism sector.

Ferguson Marine priorities

In 2020-21 we will:

• support Ferguson Marine in establishing appropriate governance and improving business processes; and
• continue to support construction of two new major dual-fuel vessels for the Clyde and Hebrides network.

Spending Plans

Table 10.01: Spending Plans (Level 2)

Level 2	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Digital Connectivity	36.7	32.9	63.4
Energy	93.6	105.1	190.6
Cities Investment and Strategy	122.2	192.4	205.6
Rail Services	808.8	989.0	1,259.1
Concessionary Fares and Bus Services	269.1	272.9	288.8
Active Travel, Low Carbon and Other Transport Policy	185.3	184.0	298.4
Motorways and Trunk Roads	831.5	833.1	748.9
Ferry Services	240.5	233.1	255.1
Air Services	59.8	67.7	86.2
Ferguson Marine	-	-	49.6
Total Transport, Infrastructure and Connectivity	2,647.5	2,910.2	3,445.7
of which:
Total Fiscal Resource	1,017.0	1,000.0	1,106.3
of which Operating Costs*	-	10.6	10.3
Non-cash	152.6	155.6	112.9
Capital	1,419.4	1,718.1	2,166.1
Financial Transactions**	58.5	36.5	60.4
UK Funded AME	-	-	-

* Scottish Government operating costs have been presented in this way within portfolio budgets since 2019-20. The reduction in operating costs reflects a change in the profile of Digital Connectivity staffing.
**The Financial Transactions total represents the net portfolio position after subtracting forecast Financial Transactions income. The gross amount of Financial Transactions for each portfolio is listed in the Infrastructure Investment Chapter.

Presentational Adjustments for Scottish Parliament Approval

Level 2	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
HIAL (NDPB Non-cash)	(9.5)	(9.5)	(9.5)
SC (NDPB Non-cash)	-	-	(2.5)
PPP/PFI Adjustments	(28.1)	(17.8)	(18.7)
Grants to Local Authorities	36.9	42.5	85.7
Total TI&C	2,646.8	2,925.4	3,500.7
Total Limit on Income (accruing resources)			100.0

What the Digital Connectivity budget does

This budget supports activity to enhance Scotland's digital infrastructure, extend connectivity across the country and showcase the innovation that this enables. Although telecoms is reserved to the UK Parliament, the lack of targeted investment from the UK Government to address infrastructure gaps in Scotland has resulted in the Scottish Government intervening. Building on the success of the Digital Scotland Superfast Broadband (DSSB) programme, we have established the Reaching 100% (R100) programme which will invest £600 million in future-proofed digital infrastructure that, alongside commercial deployment, will extend superfast broadband access to all of Scotland. We also continue to invest to improve mobile coverage - through the Scottish 4G Infill Programme, which is delivering new masts to address mobile coverage 'not-spots', and through the Scotland 5G Centre, which will demonstrate how 5G and the technology that it enables can drive innovation and efficiency across all sectors. Collectively, these programmes will drive a step change in the quality of digital infrastructure across Scotland and make a key contribution to our climate change ambitions.

Table 10.02: 10.02: Digital Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Digital Connectivity Capital	34.2	28.2	58.7
Digital Connectivity Resource	2.5	4.7	4.7
Total Digital Connectivity	36.7	32.9	63.4
of which:
Fiscal Resource	2.5	4.7	4.7
Non-cash	-	-	-
Capital	22.2	28.2	58.7
Financial Transactions	12.0	-	-
UK Funded AME	-	-	-

What the Energy budget does

The budget supports the energy strategy vision of a flourishing competitive local and national energy sector, delivering secure, affordable, clean energy for Scotland's households, communities and businesses through investment in energy efficiency measures for domestic and industrial buildings; renewable energy projects; widening community ownership of renewable energy project; investment in low carbon infrastructure; support to the oil and gas supply chain and looking to new opportunities from decommissioning projects.

Table 10.03: Energy Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Energy	93.6	105.1	190.6
Total Energy	93.6	105.1	190.6
of which:
Fiscal Resource	21.6	28.6	35.3
Non-cash	-	-	-
Capital	45.5	50.0	129.4
Financial Transactions	26.5	26.5	25.9
UK Funded AME	-	-	-

What the Cities budget does

The budget supports all the City Region Deals that have been agreed: Glasgow, Aberdeen, Inverness and Edinburgh. It supports progress for the City Region and Growth Deals in development for Stirling, Tay, the Ayrshires and the Borderlands and progression for Moray, Argyll and Bute, Falkirk and the Islands.

Table 10.04: Cities Investment and Strategy Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Cities Investment and Strategy	122.2	192.4	205.6
Total Cities	122.2	192.4	205.6
of which:
Fiscal Resource	0.3	4.6	4.6
Non-cash	-	-	-
Capital	121.9	187.8	201.0
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Rail Services budget does

The budget supports the delivery of passenger rail services through the ScotRail and Caledonian Sleeper franchise contracts, including procurement of new trains, and Network Rail's operation, maintenance, renewal and enhancement of the rail infrastructure in Scotland. Rail infrastructure funding comprises the grant paid to Network Rail, determined independently by the Office of Rail and Road (ORR) towards operation, maintenance and renewal with Major Public Transport Projects funding enhancement.

Table 10.05: Rail Services Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Major Public Transport Projects	31.6	207.0	207.0
Rail Development	6.2	3.0	3.0
Rail Franchise	183.4	417.0	520.1
Rail Infrastructure	587.6	362.0	529.0
Total Rail Services	808.8	989.0	1,259.1
of which:
Fiscal Resource	189.6	153.0	241.1
Non-cash	-	-	-
Capital	619.2	836.0	1,018.0
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Concessionary Fares and Bus Services budget does

The budget provides support for bus services across Scotland, primarily through Bus Service Operators' Grant, which is paid to operators based on mileage and includes incentives to encourage the use of greener buses, funds national concessionary travel schemes for older, disabled and young people and supports multi-modal smart and integrated ticketing, including the smartcards used to access concessionary travel. This budget also provides funding for a number of organisations working to improve public transport, including Bus Users Scotland and the Community Transport Association Scotland.

Table 10.06: Concessionary Fares Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Concessionary Fares	201.6	210.5	229.8
Smartcard Programme	3.3	5.2	4.8
Support for Bus Services	64.2	57.2	54.2
Total Concessionary Fares	269.1	272.9	288.8
of which:
Fiscal Resource	257.1	266.7	286.0
Non-cash	-	-	-
Capital	2.0	6.2	2.8
Financial Transactions	10.0	-	-
UK Funded AME	-	-	-

What the Active Travel, Low Carbon and Other Transport Policy budget does

The budget provides support for: sustainable transport and encouraging behaviour change, including infrastructure projects for safe walking and cycling; infrastructure and incentives to promote the transition to ultra-low emission light vehicles; the provision of impartial travel information services; road safety; accessible travel; freight industry reduction of emissions; the Future Transport Fund low carbon transport and zero emission initiatives; Scottish Canals operation and maintenance; Transport Scotland Administration and Regional Transport Partnerships.

Table 10.07: Active Travel, Low Carbon and Other Transport Policy Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Agency Administration Costs	17.4	15.8	16.0
Road Safety	2.9	3.2	3.2
Scottish Canals	11.6	15.0	23.2
Strategic Transport Projects Review	5.2	3.5	3.5
Support for Sustainable & Active Travel	79.0	79.0	107.4
Support for Freight Industry	1.0	0.7	0.7
Transport Information	1.2	1.2	0.7
Future Transport Fund	60.2	60.3	83.3
Edinburgh Tram Inquiry	1.5	0.2	0.2
Travel Strategy & Innovation	5.3	5.1	60.2
Total Active Travel, Low Carbon and Other Transport Policy	185.3	184.0	298.4
of which:
Fiscal Resource	55.6	51.2	50.8
Non-cash	0.6	0.6	3.2
Capital	119.1	122.2	209.9
Financial Transactions	10.0	10.0	34.5
UK Funded AME	-	-	-

What the Motorways and Trunk Roads budget does

In addition to major roads construction projects and other road improvements, the budget delivers routine, cyclical and winter maintenance to maintain the safety, environment and amenity of the trunk road network. It includes road safety improvement programmes, information for road travellers and an emergency response facility to deal with emergencies and incidents on the network. This delivers better journey times and transport connections, with reduced emissions and greater quality, reliability, accessibility and affordability. The budget funds provision of transport resilience measures and robust transport plans for major events to meet the needs of customers, improving physical connectivity, economic productivity, the environment, public health and social inclusion.

Table 10.08: Motorways and Trunk Roads Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Capital Land & Works	249.0	212.1	179.8
Forth & Tay Bridge Authorities	26.0	21.5	37.3
Queensferry Crossing	7.2	8.1	2.4
Motorways and Trunk Roads Other Current Expenditure	13.6	15.7	15.6
Network Strengthening	57.8	70.9	77.5
Roads Depreciation	142.5	145.5	100.2
Roads Improvements	39.2	58.8	46.3
Routine and Winter Maintenance	89.9	91.8	94.4
Structural Repairs	34.0	44.7	45.7
Motorway and Trunk Roads PFI	172.3	164.0	149.7
Total Motorways & Trunk Roads	831.5	833.1	748.9
of which:
Fiscal Resource	282.6	278.4	266.6
Non-cash	142.5	145.5	100.2
Capital	406.4	409.2	382.1
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Ferry Services budget does

The budget supports the Scottish Government's published Ferries Plan providing subsidy for the Clyde and Hebrides and Northern Isles Ferry Services contract and resilience funding on the Clyde and Hebrides routes. It also provides for loans to Caledonian Maritime Assets Ltd to procure vessels for these networks and grants to ports for improvement works to piers and harbours that support lifeline ferry services. It will also deliver actions being developed to support improved reliability of services.

Table 10.09: Ferry Services Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Support for Ferry Services	173.7	178.1	199.1
Vessels and Piers	66.8	55.0	56.0
Total Ferry Services	240.5	233.1	255.1
of which:
Fiscal Resource	173.7	178.1	177.3
Non-cash	-	-	-
Capital	66.8	55.0	77.8
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Air Services budget does

The budget supports Highlands and Islands Airports Limited (HIAL) to enable the operation of air services ensuring that Scotland's remote and rural areas remain connected. It includes support for capital investment and operation and development of airport services. It also supports the Air Discount Scheme which provides discounted fares for eligible residents on eligible routes, and the provision of lifeline air services from Glasgow to Campbeltown, Tiree and Barra which cannot be provided commercially and international route development.

Table 10.10: Air Services Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Highlands & Islands Airports Limited	36.5	45.9	70.5
Support for Prestwick Airport	6.5	6.0	-
Support for Air Services	16.8	15.8	15.7
Total Air Services	59.8	67.7	86.2
of which:
Fiscal Resource	34.0	34.7	39.9
Non-cash	9.5	9.5	9.5
Capital	16.3	23.5	36.8
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Ferguson Marine budget does

The budget supports Ferguson Marine in establishing appropriate governance and improving business processes and progression of the delivery of vessels under construction.

Table 10.11: Ferguson Marine Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Ferguson Marine	-	-	49.6
Total Ferguson Marine	-	-	49.6
of which:
Fiscal Resource	-	-	-
Non-cash	-	-	-
Capital	-	-	49.6
Financial Transactions	-	-	-
UK Funded AME	-	-	-

Table 10.12: Central Government Grants to Local Authorities Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Cycling, Walking and Safer Routes	7.4	8.9	8.9
Support for Inter-Island Ferries	10.5	10.5	11.5
Regional Transport Partnership	19.0	23.1	15.3
Heat Networks Early Adopters Challenge Fund	-	-	50.0
Total Central Government Grants to Local Authorities	36.9	42.5	85.7

Contribution To National Outcomes

This table summarises the portfolio's contributions to the Outcomes of the National Performance Framework.

Table 10.13: National Outcome

Digital Connectivity Priority

Primary National Outcome: Economy

Secondary National Outcomes: Fair Work and Business, Environment, Communities

Digital connectivity will underpin the transition to a low carbon economy. The full benefits will be realised as businesses, individuals and the public sector translate the power of cloud computing, 5G, IoT and Big Data into new business models, practices, products and services. 5G alone has the potential to add £17 billion to Scotland's GDP and create 160,000 new jobs by 2035. 5G-enabled smart grids could save 6.4 million tonnes of CO₂; and digital traffic management systems could reduce congestion and CO₂ emissions by an estimated 370,000 tonnes per year.

Energy Priority

Primary National Outcome: Environment

Secondary National Outcomes: Economy, Communities, Poverty

Scotland's energy strategy set out our vision for a flourishing, competitive energy sector, delivering secure, affordable, clean energy for Scotland's households, communities and businesses. The strategy established six strategic priorities, including energy efficiency and renewable and low carbon solutions.

Initiatives planned for 2020-21 will focus on delivery against Scotland's targets to reduce Scotland's emissions of all greenhouse gases to net zero by 2045.

We will support Scotland's supply chain to enable it to take advantage of the opportunities made available by renewable projects around the country. As an example of our commitment to this National Outcome, investment in a heat decarbonisation programme will accelerate and scale up our action to reduce emissions from our homes and buildings.

City Deals Priority

Primary National Outcome: Economy

Secondary National Outcomes: Environment, Fair Work and Business, Communities

Cities and their regions are the engines of our economy. The Scottish Government has committed up to £1.3 billion to support Scotland's seven cities and their regions maximise the economic opportunities of the future and thrive. This investment will benefit all of Scotland, creating thousands of jobs and up-skilling local labour markets. Each deal is tailored to maximise the value from the economic strengths and opportunities of its region.

Rail Services Priority

Primary National Outcome: Economy

Secondary National Outcomes: Environment, Fair Work and Business, Communities

By continuing to invest in Scotland's railway, we will support the economy by connecting our people, communities and businesses through faster and more frequent rail services, while also improving the capacity and comfort of our trains. We will progress work to further decarbonise our railways which, alongside attracting more passengers and freight onto rail and out of cars and lorries, will provide considerable benefits to our environment and improve the safety of our communities through reduced road use and congestion.

Concessionary Fares and Bus Services Priority

Primary National Outcome: Environment

Secondary National Outcomes: Health, Human Rights, Poverty

Bus services take up less road space and emit less carbon dioxide and other pollutants per passenger journey than cars. They are used relatively more by the less well off, by younger and older people and by women. Free bus travel makes it easier and cheaper for older and disabled people to travel and stay active, supporting their mental and physical wellbeing. Our support for bus services through the Bus Service Operators Grant makes the bus network more extensive and cheaper to use that would otherwise be the case, and includes incentives for low emission vehicles which help reduce carbon emissions and air pollutants. Investment in bus priority measures will reduce the impacts of congestion on bus services and encourage more sustainable transport journeys.

Active Travel, Low Carbon and Other Transport Policy Priority

Primary National Outcome: Environment

Secondary National Outcomes: Health, Economy, Communities

Reducing our emissions means that we not only need to decarbonise our existing models of transport but also change the ways in which we travel. Innovation, sustainable transport infrastructure and investment will transform our cities, towns and rural areas into places that support lower emissions lifestyles and businesses. This will lead to economic opportunities for Scottish companies and improve the health and wellbeing of our communities.

Motorways and Trunk Roads Priority

Primary National Outcome: Economy

Secondary National Outcomes: Environment, Communities

The trunk road network is one of the largest and most visible community assets for which the Scottish Government is responsible, with an estimated construction value of £21 billion. The operation, maintenance and improvement of this vital asset must continue to support the country by delivering the required service to road users while providing best value for public money. The network adds £1.38 billion to the Scottish economy annually, generates £358 million in tax receipts and employment for 31,000 people (1.2 per cent of all Scotland).

Trunk roads are a key network in Scotland's transport system which supports the functioning of all 360,000 businesses. In Scotland, 45 per cent of these registered enterprises are part of one of the six Growth Sectors, identified in Scotland's Economic Strategy. These policies are also essential to deliver climate change adaptation and mitigation measures and to the delivery of statutory targets on reduction of carbon emissions by 2045.

Ferry Services Priority

Primary National Outcome: Economy

Secondary National Outcomes: Fair Work and Business, Communities, Poverty

Ferries are a significant enabler of economic sustainability and population retention of island communities; this came through clearly in the Government's recently published draft National Islands Plan.

Air Services Priority

Primary National Outcome: Economy

Secondary National Outcomes: Communities, International, Fair Work and Business

Improving Scotland's connectivity with the rest of the world helps build strong business links and provides a real boost to our tourism industry. Our support for air services to and within the Highlands and Islands means that all parts of Scotland stay connected. This contributes to ensuring our remote communities remain viable be enabling people to live work and run businesses in these areas helping to address issues such as depopulation.

Ferguson Marine

Primary National Outcome: Economy

Secondary National Outcomes: Communities, Fair Work and Business

Bringing Ferguson Marine into public ownership has secured the jobs at the yard and a future for commercial shipbuilding on the Clyde. Our support to Ferguson Marine will ensure delivery of the ferries under construction at the yard, which, when complete, will service lifeline ferry routes.

Footnotes

1. https://www.gov.scot/publications/scottish-energy-strategy-future-energy-scotland-9781788515276/