Scottish Budget 2020-2021

Chapter 7: Finance, Economy and Fair Work

Portfolio Responsibilities

The Finance, Economy and Fair Work portfolio is at the heart of delivering the Scottish Government's purpose through sustainable and inclusive economic growth.

The portfolio has overall responsibility for the Scottish economy, in particular managing the public finances, fiscal policy and taxation, the Scottish budget, public bodies policy, fair work, employability, trade and inward investment as well as for Scottish Enterprise, Revenue Scotland, Scottish Futures Trust, Scottish Public Pensions Agency, Accountant in Bankruptcy, Scottish Fiscal Commission, Registers of Scotland and the development of the Scottish National Investment Bank.

A refreshed version of the portfolio-led Economic Action Plan was launched on 22 January and shows progress in delivering existing actions, as well as new commitments from the Programme for Government (PfG), that will help to build a strong, vibrant and diverse economy that promotes wellbeing, attracts investment and facilitates our transition to a net-zero economy. The Economic Action Plan sets out how we will tackle the global climate emergency, grow an inclusive economy, and face up to the challenges of Brexit, changing demographics and shifting global circumstances.

Key deliverables in the Plan include:

• the Scottish National Investment Bank to be operational in 2020 supported by the £150 million Building Scotland Fund and a further £220 million in direct investment in 2020-21 with the transition to net-zero at the heart of the bank's work;
• a dedicated place-based approach to inclusive growth through commitment to regenerate the Clyde, with job creation, infrastructure investment, recognising the climate change opportunity and utilising the river;
• key focus on collective wellbeing economy to ensure that Scotland is committed to Fair Work, ensuring a just transition to a net-zero economy; and
• simplifying the business support environment through a dedicated website that provides access to products, services and events on offer from our enterprise and skills agencies and Business Gateway.

Portfolio Priorities

The Finance, Economy and Fair Work portfolio is central to delivering the Scottish Government's purpose and therefore all the national outcomes, and in particular:

• we have a globally competitive, entrepreneurial, inclusive and sustainable economy;
• we have thriving and innovative businesses, with quality jobs and fair work for everyone;
• we are open, connected and make a positive contribution internationally; and
• we are well educated, skilled and able to contribute to society.

To help deliver these outcomes in the face of the ongoing challenges arising from the UK's exit from the EU, and the changing nature of the labour market/economy, the portfolio is focused on building resilience into our economy and helping businesses and individuals to deal with the consequences.

Our priorities continue to be informed by the four themes of the Scottish Government's Economic Strategy:

• investing in our infrastructure, our communities and our people;
• supporting and promoting innovation;
• strengthening our international links and promoting Scotland to the global economy; and
• ensuring economic growth is inclusive and that everybody benefits from it.

Investing

• The Scottish National Investment Bank is to be operational in 2020 supported by the £150 million Building Scotland Fund and a further £220 million in direct investment in 2020-21, supporting the transition to net-zero.
• The Scottish Government is helping Scotland realise its full potential in an increasingly digital world. That means investment in digital skills, infrastructure and technology. The Digital Development Loan provides interest-free loans to businesses to help invest in digital technologies and skills.
• Our Green Growth Accelerator model will extend the current Growth Accelerator model to unlock additional investment for infrastructure projects which support our transition to a net-zero emissions economy. The model follows the development of Growth Accelerators in Edinburgh City Centre and Dundee Waterfront - which combine public and private investment to transform cities and regions.
• Our investment in the new National Manufacturing Institute Scotland (NMIS) and the related Lightweight Manufacturing Centre will bring together research, industry and the public sector to help companies across Scotland embrace new manufacturing techniques, support research and develop the skills of our workforce.

Innovation

• Michelin Scotland Innovation Parc at Dundee is a live example of a joint venture between Dundee City Council, Scottish Enterprise and Michelin. £60 million will be invested over the lifetime of the project to create an ambitious centre of innovation and skills where industry and academia come together with a focus on sustainable mobility and low carbon energy. It will also include an innovation hub which will offer office space as well as business and innovation support services.
• We will continue to support business investment in research and development (R&D) with our target of doubling spend from £870 million in 2015 to £1.7 billion by 2025 and meeting our commitment to increase grant support for business R&D from £22 million to £37 million per annum for the 3 years 2018-21.

Internationalisation

• Our Economic Action Plan includes a focus on growing exports and international investment and attracting global talent. This is supported with £20 million investment over 3 years to support our export ambitions as set out in 'A trading nation: our plan for growing Scotland's exports'.
• A Trading Nation sets out to grow overseas exports from 20 per cent of GDP to 40 per cent. As a first step towards that longer-term ambition we will set a target of increasing exports to 25 per cent of our GDP by 2029.
• The enhanced international trade and investment budget will support a focused and evidence driven approach to attracting inward investment into Scotland which build our strengths and provides high quality work and innovation across Scotland.

Inclusive Economic Growth

• We will continue to deliver and improve our devolved employment support service, Fair Start Scotland, giving individualised support to 38,000 individuals, including disabled people and those at risk of becoming long-term unemployed, to access and sustain employment.
• We published a Fair Work Action Plan in February 2019 setting out a range of measures to support employers to embed fairer working practices, including a benchmarking tool to assess current practice. Other commitments include a refreshed Scottish Business Pledge more clearly aligned to Fair Work principles, a new learning network, and an international Fair Work Summit.
• We will invest in Scotland's workforce to make the skills sector more responsive to the needs of the economy, and to help people into the labour market.

Employability and Training priorities

The Employability and Training budget plays an essential role in delivering the Scottish Government's aims of tackling poverty, promoting inclusion and social justice, and creating a fair and prosperous Scotland.

Supporting people into sustainable jobs is critical to inclusive growth, with those facing the greatest barriers to employment requiring more individualised support that is effectively integrated within other services. Key contributions made by this portfolio to tackling poverty and improving equality outcomes and Fair Work and Business Outcomes include:

• providing employability and in-work progression support for low-income parents;
• closing the disability employment and gender pay gaps;
• continuing to deliver and improve our devolved employment support service, Fair Start Scotland, giving individualised support to 38,000 individuals, including disabled people and those at risk of becoming long-term unemployed, to access and sustain employment; and
• ensure employability support is linked to other services such as housing, justice and health.

Our locally delivered employability programmes utilise the experience and knowledge of local authorities working within communities, helping to improve them and impacting positively on wellbeing, while continuing to support national priorities such as increasing inclusive growth and tackling child poverty.

This budget also ensures increasing equality, competitiveness and fair work for the Scottish workforce, engaging with employers on fair work, work place equality and innovation as drivers for growth.

The Flexible Workforce Development Fund (jointly funded by both this and the Education and Skills portfolio) provides access to funding for Scotland's UK Apprenticeship levy-paying employers.

Digital Strategy priorities

The Digital Strategy describes how Scotland and Scottish Government will realise the opportunities of the digital and data age.

In 2020-21 we will:

• develop our critical national infrastructure of common standards, systems and components to enable citizens and businesses to engage with government in a safe, secure and accessible way - we will develop common digital platforms for publishing, payments, digital identity and cloud hosting that maximise operating efficiency and enable public service reform that redirects resources from the back office to front-line service delivery;
• enable data driven innovation, placing Scotland in a leadership position on the development and application of trustworthy Artificial Intelligence to create economic advantage and tackle complex social problems - we will take a lead in exploring the ethical issues raised by the internet era;
• build Scotland's international reputation as a centre of excellence in data science through our Access to Data programme and the creation of Research Data Scotland. We will stimulate economic growth by attracting businesses and non-profits to establish data businesses and capabilities in Scotland;
• expand CivTech, the Scottish Government's innovation driver and business incubator to stimulate and scale more new technology businesses and tackle larger-scale challenges such as our response to the global climate emergency;
• enhance the digital capability and capacity of the Scottish Government and its partners through Scotland's Digital Academy and ways of working that leverage the potential of Scotland's business, third and academic sectors in delivering digital transformation; and
• embed the Scottish approach to service design and common digital and data standards across the Scottish public sector to promote interoperability and better meet the expectations of the people and businesses that use our services.

Economic Advice priorities

Our priorities include delivering key economic analysis and statistics across areas of Scottish Government activity including economic performance, Brexit, economic strategy and development, international trade, labour markets and fiscal analysis. These statistics and the data we purchase are required to ensure we have statistics to understand and monitor performance of the economy. These are essential both for economic policy and external scrutiny.

Our priority is to provide support to consumers to ensure they have the best information and protections by:

• establishing Consumer Scotland;
• investing in advocacy work through Citizens Advice Scotland;
• Supporting Advice.scot to provide advice to consumers when and where they need it; and
• delivering consumer and competition policy to underpin these initiatives.

Enterprise, Trade and Investment priorities

We want Scotland to be the most competitive place to do business, delivering a strong and productive economy that creates wealth and employment across Scotland. To do this our priorities include the following:

• work with Scottish Enterprise (SE) to ensure it delivers for the whole economy. This means working with business to create more, quality jobs. Ones that help reduce poverty and support businesses, communities and families across Scotland;
• a key focus for SE will be to inform and deliver the collaborative actions agreed by the Enterprise and Skills Strategic Board and to be responsive to emerging themes and priorities of the Board. As a key partner within the Strategic Board, SE will play a pivotal role in the delivery of both Scotland's Economic Strategy and the Strategic Board's Strategic Plan;
• through the business-led Enterprise and Skills Strategic Board, increase the impact of the investment we make in enterprise and skills development and ensure our agencies operate as a single system that delivers the right information, advice and support at the right time for business enabling businesses to flourish and reach their full potential; and continue to provide support for businesses to navigate the potential harm of Brexit;
• continue to invest in the new National Manufacturing Institute Scotland (NMIS) along with the related Lightweight Manufacturing Centre and wider support programmes, to bring together research, industry and the public sector to help companies across Scotland embrace new manufacturing techniques, support research and develop the skills of our workforce;
• transform the economic potential of Scotland through innovation particularly in advanced manufacturing, digital and data-based technologies and services and through developing low carbon industries as part of the transition to a net-zero economy;
• promote Scottish businesses, products and investment opportunities to a global market, focusing on where engaging internationally is demonstrably more likely to lead to an increase in the overall Scottish economy;
• support a range of measures to stimulate and support entrepreneurship, business development and growth;
• work collaboratively with business, public sector partners and wider networks in support of inclusive growth and to realise impact at local, regional and national level;
• work to deliver the Scottish Government's increased ambition for internationalisation of the economy working with others to deliver a Team Scotland approach: co-inventing, co-ordinating and championing policies and programmes to realise Scotland's trade and investment potential; and
• enable more Scottish businesses to export more goods and services to more markets and secure greater foreign investment for Scotland.

Scottish National Investment Bank priorities

The priority is to see the Scottish National Investment Bank fully operational during 2020 following successful conclusion of the Bill in January. The priority is to have appropriate people, resources and systems in place so that the Bank can be formally launched in 2020. Following on from the Building Scotland Fund and other pre-cursor Bank investments taking place this year, the Bank can begin to support and positively impact on Scotland's economy through the provision of mission-based investment, and develop its own pipelines for investment. The Bank's primary mission involves accelerating the move to a low carbon, high-tech and inclusive and net-zero economy. It will be a critical player in terms of responding to the global climate emergency as well as supporting innovative investment and inclusive growth across Scotland's economy.

Accountant in Bankruptcy priorities

Accountant in Bankruptcy is largely self-funded through statutory fees for administering and supervising insolvency processes. The budget supports the agency's work to provide fair access to debt relief and debt management for the people of Scotland.

Scottish Public Pensions Agency Administration priorities

In 2020-21 the Scottish Public Pensions Agency will:

• implement a Strategic Architecture Review which will focus on providing a clear roadmap to achieve its strategic vision;
• develop its approach to user research and improved stakeholder engagement to aid decision making and improve the customer journey;
• fully address the findings of the UK courts in relation to transitional protection ruled discriminatory as applied to devolved Career Average Revalued Earnings (CARE) pension schemes; and
• embed a new target-operating model to support service delivery.

Revenue Scotland priorities

Revenue Scotland, the Scottish tax authority, is responsible for the collection and management of the wholly devolved taxes, currently Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT). Revenue from devolved taxes supports Scottish Government policy objectives through the Scottish Consolidated Fund.

It will continue to invest in processes, technology and staff so that it provides an accessible and convenient service to assist all taxpayers to comply with their obligations. Through investment in people, Revenue Scotland will continue to progress the Scottish Tax Education Programme and People Strategy.

Revenue Scotland will undertake compliance work to support taxpayers to pay the right tax at the right time and also protect revenues against tax fraud (i.e. tax evasion) and tax avoidance.

Revenue Scotland will support the Scottish Government on tax policy matters, and the Scottish Fiscal Commission in tax forecasting; and continue to engage with stakeholders to improve the efficiency, effectiveness, accessibility and adaptability of the service it provides.

Scottish Fiscal Commission priorities

The Scottish Fiscal Commission (SFC) is Scotland's independent fiscal institution, helping to improve fiscal transparency and scrutiny. It has responsibility for producing the official forecasts for onshore Gross Domestic Product, devolved and partially devolved taxes, and devolved social security expenditure and assess the reasonableness of Scottish Government borrowing projections. Whilst the SFC contributes to economic sustainability outcomes, in line with international OECD best practice, it performs its functions independent from government, being directly responsible to the Scottish Parliament.

Finance priorities

The Finance budget covers a range of important functions such as tax, financial management and measuring national performance in order to manage Scotland's financial powers, risks and opportunities and includes public information and engagement. This budget also covers the Scottish Government's corporate communications which are central to the delivery of the Scottish Government's programme across all key themes, with effective communications playing a pivotal role in supporting the delivery of the policy outcomes set out in the National Performance Framework. Our priorities are to:

• continue to fund the implementation and operation of the financial provisions in the Scotland Act 2016 and the operation of the powers devolved under the Scotland Act 2012 and its associated financial management regime;
• manage the Scotland Act implementation budget which funds the operational costs for delivering Scottish income tax and Scottish VAT assignment;
• continue to develop the core financial and digital services necessary to support the increasing size and complexity of the Scottish budget and fiscal regime;
• continue to develop medium-term planning capability to take account of spending and revenue raising drivers and economic and fiscal risks;
• provide growth accelerator grant payments to local authorities that have met relevant growth accelerator targets; and
• support the development of business cases for the Green Growth Accelerator programme, which will extend the current Growth Accelerator model to unlock additional investment for infrastructure projects which support our transition to a net-zero emissions economy.

European Regional Development Fund and European Social Fund priorities

The European Regional Development Fund (ERDF) and European Social Fund (ESF) support public bodies to deliver against programmes agreed with the European Union. These support multiple National Outcomes and are delivered on an ongoing basis to 2023-24.

The ERDF programme:

• supports SMEs to grow, innovate and invest through Scottish Enterprise, Highlands and Islands Enterprise, Business Gateway and Scottish Growth Scheme;
• supports the transition to a net-zero economy by investing in new technologies and the shift towards sustainable transport; and
• promotes Scotland's natural and cultural heritage and the creation of green spaces in urban areas.

The ESF programme:

• aims to support over 100,000 people gain employability skills to enable them to move into work or progress towards better quality jobs;
• works to reduce poverty and social exclusion by supporting disadvantaged people and communities through project led by local authorities and the Scottish Government; and
• supports learning and skills through funding for colleges and apprenticeships, including graduate and foundation apprenticeships.

Registers of Scotland priorities

Registers of Scotland is the Non-Ministerial Office responsible for compiling and maintaining 20 public registers relating to property and other legal documents in Scotland, to date self-funded by fees, they charge for their services. Two of the most active registers relate to land ownership: the Land Register of Scotland and the General Register of Sasines, providing a statutory guarantee of rights in property that underpins the housing market. In addition Registers of Scotland maintains the Register of Inhibitions on behalf of the Scottish Courts and Tribunal Service, the Landlord and Letting Agents registers on behalf of local authorities and works with Revenue Scotland to support compliance with payment of Land and Buildings Transaction Tax.

Key priorities are to:

• complete Scotland's Land Register by 2024 and provide transparent, accurate and impartial information for all;
• lead on innovative provision of land and property data so that it is accessible and used to create value for Scotland's people and economy;
• develop and deliver digital improvements that support a forward-thinking sustainable business where the needs of customers are exceeded; and
• invest in people so that they can support a professional flexible business that works at pace to deliver value and fulfil its public task.

Central Government Grants to Local Authorities - Town Centre Fund (2019-20 funding only) priorities

This was one-off funding to stimulate activity under the Town Centre Action Plan and Business Improvement Districts in Scotland to support local economies.

Spending Plans

Table 7.01: Spending Plans (Level 2)

Level 2	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Employability and Training	52.9	56.7	57.5
Digital Strategy	22.7	28.4	25.8
Economic Advice	1.7	11.0	12.7
Enterprise, Trade and Investment	405.0	333.1	309.3
Scottish National Investment Bank	-	195.9	281.1
Accountant in Bankruptcy	3.6	3.3	2.2
Scottish Public Pensions Agency	4,421.1	4,568.2	5,408.9
Revenue Scotland	10.2	7.6	6.6
Scottish Fiscal Commission	1.6	1.9	1.9
Finance	138.7	130.7	153.2
Registers of Scotland	-	-	12.4
European Social Fund	-	-	-
European Regional Development Fund	-	-	-
Total Finance, Economy and Fair Work	5,057.5	5,336.8	6,271.6
of which:
Fiscal Resource	415.1	411.2	440.5
of which Operating Costs*	-	98.1	100.9
Non-cash	11.2	26.9	30.9
Capital	76.1	88.2	105.0
Financial Transactions	153.5	265.5	310.1
UK Funded AME (NHS and Teachers Pensions)	4,401.6	4,545.0	5,385.1

* Scottish Government operating costs have been presented in this way within portfolio budgets since 2019-20.
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
Enterprise (NDPB Non-cash)	(8.3)	(8.3)	(8.3)
Borrowing - not approved by Scottish Parliament	-	(49.0)	(66.0)
Revenue Scotland - shown separately	(10.2)	(7.6)	(6.6)
Scottish Fiscal Commission - shown separately	(1.6)	(1.9)	(1.9)
NHS and Teachers Pensions - shown separately	(4,401.6)	(4,545.0)	(5,385.1)
Registers of Scotland - shown separately	-	-	(12.4)
Central Government Grants to Local Authorities	-	50.0
Total Finance, Economy and Fair Work	611.1	775.0	791.3
Total Limit on Income (accruing resources)			300.0

What the Employability and Training budget does

This budget directly supports the approach to employability, focusing on our commitment to support the ongoing delivery of the devolved service, Fair Start Scotland, and the development of the No One Left Behind programme. Funding also builds on the work of the Fair Work Convention to promote fair work, including the implementation of actions from the Fair Work Action Plan.

Table 7.02: Employability and Training Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Employability and Training	52.9	56.7	57.5
Total Employability and Training	52.9	56.7	57.5
of which:
Fiscal Resource	51.9	56.1	57.3
Non-cash	-	0.4	0.2
Capital	1.0	0.2	-
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Digital Strategy budget does

This budget builds the critical national infrastructure required by a modern digital nation. It ensures that public services are secure, efficient, resilient and able to meet the expectations of their users. The budget stimulates innovation and business growth through procurement and business incubation and enables Scotland to be recognised as an ethical digital nation with world-leading capabilities in data science.

Table 7.03: Digital Strategy (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Digital Strategy	22.7	28.4	25.8
Total Digital Strategy	22.7	28.4	25.8
of which:
Fiscal Resource	22.7	28.4	25.8
Non-cash	-	-	-
Capital	-	-	-
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Economic Advice budget does

The budget supports the creation and running of Consumer Scotland and its proactive advocacy work on behalf of Scottish consumers. It will support investigations of specific consumer issues and bring better co-ordination to the consumer protection system in Scotland as a whole.

The Economic Advice budget also supports the Office of the Chief Economic Adviser and the Council of Economic Advisers. The Office of the Chief Economic Adviser budget provides for the procurement of data primarily from the Office of National Statistics which is essential for the production and publication of key economic statistics for Scotland. This accounts for the majority of expenditure. The budget also allows for the procurement of specific technical assistance for the in-house economic and fiscal models which underpin analysis for the Scottish Government. The Council of Economic Advisers budget supports the functioning of the Council and the economic advice provided to Ministers. Members are not remunerated for their time.

Table 7.04: Economic Advice Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Office of the Chief Economic Adviser	1.0	6.4	6.3
Council of Economic Advisers	0.1	0.1	0.1
Economic Policy and Advice	-	1.3	1.3
Consumer Scotland Policy and Advice	0.6	3.2	5.0
Total Economic Advice	1.7	11.0	12.7
of which:
Fiscal Resource	1.7	11.0	12.7
Non-cash	-	-	-
Capital	-	-	-
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Enterprise, Trade and Investment budget does

The budget supports our work with Scottish Enterprise and others in helping to deliver our commitment to create a more prosperous innovative nation with more jobs, fair work and a dynamic, sustainable and inclusive economy. This budget funds our offices in London, Dublin and Berlin, who work to promote Scotland's interests and enhance our external relationships. It supports our increased ambitions for internationalisation, building our international presence and development of trade policy in response to Brexit. The enhanced investment budget will support a focused and evidence-driven approach to attracting inward investment into Scotland which build our strengths and provides high quality work and innovation across Scotland.

It also supports our work around the attraction and retention of international investment into Scotland's economy. It funds support to encourage the take up of Advanced Manufacturing technologies and to fund National Manufacturing Institute Scotland (NMIS) and Lightweight Manufacturing Centre to bring together research, industry and the public sector to help companies across Scotland embrace new manufacturing techniques, support research and develop the skills of our workforce.

Table 7.05: Enterprise, Trade and Investment Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Enterprise	289.3	273.5	247.1
Innovation and Industries*	115.7	59.6	62.2
Total Enterprise, Trade and Investment	405.0	333.1	309.3
of which:
Fiscal Resource	175.8	179.5	170.0
Non-cash	8.3	8.5	8.5
Capital	67.4	64.6	80.7
Financial Transactions	153.5	80.5	50.1
UK Funded AME	-	-	-

* Budgets for the Building Scotland Fund and Scottish Growth Scheme are included within Scottish National Investment Bank (level 3)

What the Scottish National Investment Bank budget does

The programme will enable delivery of the Scottish National Investment Bank in 2020, leading to a step change in innovative and inclusive growth and mission-based investment into the Scottish economy with the transition to net-zero at the heart of the Bank. Development of the Bank is also supported by investment through the Building Scotland Fund and other pre-cursor Bank investments over 2018-21 together with the Scottish Growth Scheme.

Table 7.06: Scottish National Investment Bank (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Scottish National Investment Bank	-	130.9	241.1
Other Support*	-	65.0	40.0
Total Scottish National Investment Bank	-	195.9	281.1
of which:
Fiscal Resource	-	10.9	21.1
Non-cash	-	-	-
Capital	-	-	-
Financial Transactions	-	185.0	260.0
UK Funded AME	-	-	-

* Includes Building Scotland Fund and the Scottish Growth Scheme previously included with Innovation and Industries

What the Accountant in Bankruptcy budget does

Accountant in Bankruptcy (AiB) is largely self-funded through statutory fees for administering and supervising insolvency processes. The budget supports the AiB's work to provide fair access to debt relief and debt management for the people of Scotland.

Table 7.07: Accountant in Bankruptcy (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Accountant in Bankruptcy	3.6	3.3	2.2
Total Accountant in Bankruptcy	3.6	3.3	2.2
of which:
Fiscal Resource	1.1	1.0	0.6
Non-cash	1.5	1.5	0.8
Capital	1.0	0.8	0.8
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Scottish Public Pensions Agency budget does

The Agency is a national centre of expertise for the administration of, and provision of policy advice on, public service pensions in Scotland. It administers the pension schemes of members involved in front-line delivery of key government services including NHS, Teachers, Police, Fire and a range of smaller schemes.

Table 7.08: Scottish Public Pensions Agency Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Agency Administration	19.5	23.2	23.8
Scottish Teachers Pension Scheme	1,496.3	1,525.0	1,836.6
NHS Pension Scheme	2,905.3	3,020.0	3,548.5
Total SPPA	4,421.1	4,568.2	5,408.9
of which:
Fiscal Resource	15.7	17.3	19.6
Non-cash	1.4	1.9	2.4
Capital	2.4	4.0	1.8
Financial Transactions	-	-	-
UK Funded AME	4,401.6	4,545.0	5,385.1

What the Revenue Scotland budget does

Revenue Scotland, the Scottish tax authority, is responsible for the collection and management of the wholly devolved taxes, currently Land and Buildings Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT). Revenue from devolved taxes supports the Scottish Government policy objectives via the Scottish Consolidated Fund.

Table 7.09: Revenue Scotland (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Total Revenue Scotland	10.2	7.6	6.6
of which:
Fiscal Resource	5.9	6.2	6.1
Non-cash	-	-	-
Capital	4.3	1.4	0.5
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Scottish Fiscal Commission budget does

The Scottish Fiscal Commission (SFC) plays a core role in the Fiscal Framework as Scotland's Independent Fiscal Institution helping improve fiscal transparency and scrutiny. It produces the official forecasts for onshore Gross Domestic Product, devolved and partially devolved taxes, and devolved social security expenditure. The SFC also assesses the reasonableness of Scottish Government borrowing projections and produces papers on other fiscal matters.

Table 7.10: Scottish Fiscal Commission (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Scottish Fiscal Commission	1.6	1.9	1.9
of which:
Fiscal Resource	1.6	1.9	1.9
Non-cash	-	-	-
Capital	-	-	-
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Finance budget does

The Finance budget covers a range of important functions including the implementation and operation of the Scotland Act 2016, Procurement and E-Commerce Shared Services, the cost of the Scottish Futures Trust and growth accelerator grant payments. The budget also supports the provision of property advice, facilities, information technology and financial services to the Scottish Government and a wide range of public bodies.

The budget to cover capital borrowing repayments reflects our estimated repayment costs for planned and existing borrowing in 2019-20, although figures for this commitment will not be finalised until the start of 2020-21.

Table 7.11: Finance (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Scotland Act Implementation	8.6	4.0	3.3
Procurement Shared Services	16.8	22.9	22.8
Scottish Futures Trust	4.5	4.4	4.1
Exchequer and Finance	-	15.7	19.9
Scottish Government Capital Projects	-	31.8	31.8
Public Information and Engagement	2.8	2.9	2.8
Scotland Act 2016 non-tax implementation	75.0	-	-
Capital borrowing repayment	31.0	49.0	66.0
Growth Accelerator	-	-	1.5
Green Growth Accelerator	-	-	1.0
Total Finance	138.7	130.7	153.2
of which:
Fiscal Resource	138.7	98.9	121.4
Non-cash	-	14.6	14.6
Capital	-	17.2	17.2
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Registers of Scotland budget does

Registers of Scotland was previously fully financed from fees, and did not form part of the Scottish Consolidated Budget. The Office of National Statistics has now reclassified Registers of Scotland as a central government body, and the financial arrangements are being brought into line with other parts of the Scottish Administration. The budget will enable Registers of Scotland to continue to deliver its statutory registration and information services, including ongoing investment in digital and data improvements and completing the Land Register of Scotland by 2024.

Table 7.12: Registers of Scotland (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Registers of Scotland	-	-	12.4
Total Registers of Scotland	-	-	12.4
of which:
Fiscal Resource	-	-	4.0
Non-cash	-	-	4.4
Capital	-	-	4.0
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the European Regional Development Fund and European Social Fund budget does

This budget covers funds paid to recipients which deliver a wide range of activity including business support, employability and skills, and the transition to a low carbon economy, which are subsequently recovered from the European Commission.

Table 7.13: European Structural Funds 2014-20 Programmes Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
ESF Central Government Spend - EC Income	-	-	-
ESF Central Government Spend	-	-	-
ESF Grants to Local Authorities	-	-	-
ESF Grants to Local Authorities - EC Income	-	-	-
Total ESF 2014-20 Programmes	-	-	-
of which:
Fiscal Resource	-	-	-
Non-cash	-	-	-
Capital	-	-	-
Financial Transactions	-	-	-
UK Funded AME	-	-	-

Table 7.14: European Regional Development Funds Spending Plans (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
ERDF Central Government Spend - EC Income	-	-	-
ERDF Central Government Spend	-	-	-
ERDF Grants to Local Authorities	-	-	-
ERDF Grants to Local Authorities - EC Income	-	-	-
Total ERDF 2014-20 Programmes	-	-	-
of which:
Fiscal Resource	-	-	-
Non-cash	-	-	-
Capital	-	-	-
Financial Transactions	-	-	-
UK Funded AME	-	-	-

What the Central Government Grants to Local Authorities budget does

This was one-off funding to stimulate activity under the Town Centre Action Plan and Business Improvement Districts in Scotland to support local economies.

Table 7.15: Central Government Grants (Level 3)

Level 3	2018-19 Budget £m	2019-20 Budget £m	2020-21 Budget £m
Town Centre Fund	-	50.0	-
of which:
Fiscal Resource	-	-	-
Non-cash	-	-	-
Capital	-	50.0	-
Financial Transactions	-	-	-
UK Funded AME	-	-	-

Contribution to National Outcomes

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

Table 7.16: National Outcome

Employability and Training

Primary National Outcome: Fair Work and business

Secondary National Outcomes: Economy, Education, Poverty

Evaluation of year one of Fair Start Scotland (FSS) has shown that some of the hardest-to-reach groups are more likely to sustain employment once they have had FSS support.

The Workplace Equality Fund delivers on commitments in the Fair Work Action Plan, Gender Pay Gap Action Plan, Disability Employment Action Plan and the Tackling Social Isolation and Loneliness Strategy covering support for women during menopause, victims of domestic abuse, actions for tackling social isolation and encouraging businesses with innovative projects to embed fair work dimensions in the workplace. The Flexible Workforce Development Fund provides access to a maximum of £15,000 of college training (up from £10,000 in Year 1) for Scotland's UK Apprenticeship levy-paying employers with at least 800 levy-paying employers and circa 9,000 individuals set to benefit from up-skilling and re-training opportunities.

Digital Strategy Priorities

Primary National Outcome: Economy

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

The effective application of digital and data increases the security and efficiency of public services and creates opportunities for business growth within the Tech sector. Operational benefits include improved user satisfaction, reduced fraud and debt, economies of scale from shared procurement and development activities and the ability to redeploy resources from back-office processes to front-line interaction with users. Delivery in partnership with Scottish businesses stimulates innovation and creates opportunities for businesses to develop and scale. The more effective use of data offers potential annual savings of up to £1 billion as well as improving economic, social and environmental wellbeing.

Economic Advice Priorities

Primary National Outcome: Economy

Secondary National Outcomes: Fair Work and Business

Our analysis is used to inform and support policy development. The statistics and the data we purchase are required to ensure we can understand and monitor performance of the economy. These are essential both for economic policy and external scrutiny.

Enterprise, Trade and Investment

Primary National Outcome: Economy

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

To support the work on improving Scotland's economic performance and ensuring sustainable growth through labour market and inclusive fair work. Manufacturing is one of the most productive sectors of the Scottish economy and supports our ambition to be the inventor, not just the consumer, of goods. Wellbeing sits at the core with sustainable and inclusive economic growth in the Scottish Government's National Performance Framework and Scottish Enterprise as our national enterprise agency plays an important role in realising our ambition for Scotland to be the most competitive place to do business, delivering a strong and productive economy which creates wealth and employment across Scotland. To do that the Scottish Enterprise will focus on three things: building economic resilience; investing in growth; and addressing the long-term opportunities and challenges facing our economy. Scottish Enterprise cannot do this alone and will work collaboratively with others, including the other enterprise agencies and the Enterprise and Skills Strategic Board, other stakeholders, and business partners to build a better, fairer future for all. Scottish Enterprise's partnership with Scottish National Investment Bank (SNIB) will seek to unite the economic development community around core enterprise missions, crowds in investment and make it as easy as possible for ambitious companies to access the finance they need to grow. Growth requires vibrant communities and Scottish Enterprise will work to build globally competitive assets across all regions, enhancing Scotland's reputation, reach and proposition as a place to live, work, study and invest. To build Scotland's reputation and reach in strategically important markets, Scottish Enterprise will support targeted 'Scotland is Now' campaigns that are fully integrated with proposition, product and deployment of assets and digital and physical networks that empower Scots and those that love Scotland across the world to drive advocacy and generate leads and introductions. Building on the successful backdrop of inward investment in Scotland, Scottish Enterprise will strengthen strategic relationships that secure or drive investment to bring quality jobs to Scotland. To strengthen resilience of businesses, Scottish Enterprise will develop a national centre of excellence for grant management - tapping into artificial intelligence and technology development to transform customer experience and new delivery partnerships across Scotland's regions to better harness and align public and private sector support to businesses and connect them with the right investment opportunities.

Consumer Scotland Policy and Advice Priorities

Primary National Outcome: Communities

Secondary National Outcomes: Fair Work and Business, Poverty

Consumers account for more than 60 per cent of GDP, and are vital for a strong, sustainable and inclusive economy. Through their choices, they can encourage businesses to be ethical, efficient and innovative. However, to realise this potential, consumers must understand their rights; be capable of exercising them; and have a strong voice to champion them when they are not being treated fairly.

Consumer advocacy and advice were devolved to the Scottish Parliament in 2016 and, following extensive stakeholder engagement, the Scottish Government committed to establish a dedicated consumer champion, Consumer Scotland. The Bill to create the body is currently going through the Scottish Parliament, and provides the framework for a body that will strengthen the consumer voice, and establishes a duty on public bodies to have regard to consumer interests.

In practice, Consumer Scotland will work with existing consumer organisations, conducting investigations into the most serious issues of consumer harm in Scotland, and providing leadership across a fragmented landscape. Through its analysis and co-ordination of data, it will provide an intelligence-led approach to addressing consumer detriment, which will improve how consumer harm is both detected and prevented.

Scottish National Investment Bank (SNIB)

Primary National Outcome: Economy

Secondary National Outcomes: Fair Work and Business, Environment

The Bank's investments and operations will be guided by specific missions set by Scottish Ministers which reflect grand challenges to be addressed across Scottish society.

The Bank's investments and its performance will reflect the missions set for it and be aligned with the National Performance Framework. It will be attuned to core outcomes of Fair Work and Business as well as the Economy and the Environment.

Accountant in Bankruptcy (AiB)

Primary National Outcome: Poverty

Secondary National Outcomes: Economy

Accountant in Bankruptcy (AiB) is largely self-funded through statutory fees for administering and supervising insolvency processes. The budget supports the agency's work to provide fair access to debt relief and debt management for the people of Scotland.

Scottish Public Pensions Agency

Primary National Outcome: Fair Work and Business

Secondary National Outcome: Economy

The Agency is committed to an agenda of continuous improvement and organisational change to achieve its vision. The new customer-focused target operating model and revised job descriptions are at the heart of roles that are reflective of a knowledgeable and well-trained workforce.

Revenue Scotland

Primary National Outcome: Economy

Secondary National Outcomes: Environment, Communities

Revenue Scotland will, through the fair implementation of the Scottish Government's tax policies, continue to collect Land and Buildings Transaction and Scottish Landfill taxes to contribute to the creation of a more successful country with opportunities for all of Scotland to flourish through increased wellbeing and sustainable and inclusive economic growth.

Scottish Fiscal Commission

Primary National Outcome: Economy

The SFC's role improves fiscal transparency and scrutiny of Scotland's finances.

Finance Priorities

Primary National Outcome: Economy

Secondary National Outcomes: Fair Work and Business

The Scottish Government is committed to maintaining a stable and competitive tax regime as part of a supportive business environment.

Growth Accelerator as a funding mechanism linked payment to outcomes - existing growth accelerator agreements have linked grant payments to uplifts in local tax revenues and additional employment generated from low-income areas.

European Regional Development Fund and European Social Fund Priorities

Primary National Outcome: Economy

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

Economy: Programmes support productivity, Research and Development (R&D) investment and exporting through funding for Scottish Enterprise, Highlands and Islands Enterprise, Business Gateway and Scottish Growth Scheme; reducing greenhouse gas emissions through the Low Carbon Infrastructure Transitions Programme and Zero Waste Scotland; and combatting income inequality by supporting poverty reduction and financial inclusion projects delivered by Scottish Government and local authorities.

Fair Work and Business: ERDF Programme supports business creation, innovation and growth.

Education: ESF Programme supports skills through funding for colleges and apprenticeships, including graduate and foundation apprenticeships.

Communities: Programmes support development of green spaces and community projects.

Registers of Scotland

Primary National Outcome: Economy

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

Registers of Scotland underpins the economy by providing a range of services that enable businesses and citizens to confidently transact on the £22 billion Scottish property market. The World Bank use the registration of property as a key indicator of the 'ease of doing business' in a country.

Registers of Scotland records and safeguards the rights of the individual, through a state-backed guarantee of title. It also provides open access, supported by its ongoing digital improvements, to information on the registers to communities, businesses and individuals.