Scottish Budget: 2024 to 2025
The Scottish Budget sets out the Scottish Government’s proposed spending and tax plans for 2024 to 2025, as presented to the Scottish Parliament.
Annex A.7 – Wellbeing Economy, Fair Work & Energy
Portfolio Responsibilities
Wellbeing Economy, Fair Work & Energy is at the heart of the Scottish Government’s ambition to build a stronger, fairer, and greener economy, which meets the needs of Scotland’s people and places.
This portfolio is responsible for employment and jobs, energy and offshore wind, digital strategy and connectivity, international trade and investment, and the funding of Scotland’s enterprise agencies, VisitScotland and the Scottish National Investment Bank.
Through the National Strategy for Economic Transformation (NSET), the portfolio is building a fair, green, and growing Wellbeing Economy which attracts international investment and facilitates the transition to a net-zero economy. It will enable progress towards Scotland being a leading fair work nation, and through our investment in employability and training, it will deliver on the government’s ambition to eradicate child poverty by removing structural barriers for those who struggle to access the labour market.
The portfolio will support the sustained growth of international exports and the attraction of more inward investment in Scotland’s key sectors. Alongside our enterprise agencies, the Scottish National Investment Bank will continue to act as a mission-focused investor, making commercial investments and crowding in private capital to deliver impact across its three missions.
The portfolio supports energy transition in businesses and communities across Scotland. Our strategic investment in offshore wind will stimulate and support private investment in the infrastructure and supply chain critical to the growth of the sector. It will also support market certainty, providing thousands of new jobs, embedding innovation and boosting skills.
We will also continue to promote industrial decarbonisation across the economy, supporting a just transition for the energy sector, including support for businesses in the North East of Scotland to grow and diversify. We also continue to support early-stage investment in Hydrogen innovation, along with other technologies such as tidal and wave. Due to uncertainty from the UK Government on the timescales for Track 2 CCUS support, no budget provision has been provided for this financial year; despite this we remain committed to supporting the project with up to £80 million of Scottish Government capital funding at the earliest opportunity.
The portfolio is also building Scotland’s digital capability. Our strategic investments to extend and enhance Scotland’s digital infrastructure will ensure that all of Scotland can contribute to, and benefit from, the digital economy. By extending gigabit-capable fibre networks, we are providing a platform for innovation across all sectors, including the transformation of digital public services, and creating the conditions for Scotland to become a green data hosting location at the heart of the technology revolution.
The portfolio will continue to provide person-centred employability and skills support, focusing on improving long-term labour participation. Through the New Deal for Business, the portfolio will work with businesses to support an effective regulatory environment for businesses in Scotland. Alongside this, our work to implement the Investor Panel recommendations aims to increase the amount of private sector capital investment that flows to Scotland.
Scotland has the potential to become a leading European start-up nation, and the portfolio will realise that potential by continuing to invest in world-class start-up incubation environments, first-rate mentorship and commercial education, and by supporting more women to start and scale businesses. We will also progress key recommendations from the recent innovation strategy, including a focus on the commercialisation of research and reforming our approach to investing in innovative projects.
The spending plans set out below will ensure that we build on local strengths, boost investment, innovation and productivity, and promote Fair Work and wellbeing across Scotland. This is how we will deliver an economy that is fair, green, and growing, benefitting all Scotland’s communities and people.
Wellbeing Economy, Fair Work & Energy intended contributions to the National Outcomes
Primary National Outcomes
- Economy
- International
- Fair Work and Business
- Environment
- Poverty
- Communities
- Health
Secondary National Outcomes
- Children and Young People
- Education
- Human Rights
For further information on the purpose of the portfolio budget, and contributions to national outcomes (including impacts of spend on equality of outcome) please refer to the relevant portfolio annex in the published Equality and Fairer Scotland Budget Statement.
Wellbeing Economy, Fair Work & Energy
| Level 2 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Offshore Wind Supply Chain | – | 9.3 | 66.9 |
| Energy Transition | 63.3 | 86.1 | 52.5 |
| Digital | 185.6 | 148.3 | 208.8 |
| Employability | 124.0 | 133.6 | 102.9 |
| Enterprise, Trade Investment | 467.5 | 411.6 | 348.7 |
| European Structural Funds | – | – | – |
| European Regional Development Fund | – | – | – |
| Economic and Scientific Advice | 7.9 | 9.3 | 12.9 |
| Scottish National Investment Bank | 215.8 | 246.1 | 177.1 |
| Cities Investment and Strategy | 234.7 | 211.4 | 211.2 |
| Ferguson Marine | 35.2 | 60.0 | 42.5 |
| Tourism | 52.4 | 52.7 | 47.0 |
| Total Wellbeing Economy, Fair Work & Energy | 1,386.4 | 1,368.3 | 1,270.5 |
| of which | |||
| Total Fiscal Resource | 449.3 | 492.7 | 457.1 |
| of which Operating Costs | 34.4 | 57.2 | 66.4 |
| Non‑cash | 32.6 | 34.3 | 27.3 |
| Capital | 619.8 | 579.1 | 593.2 |
| Financial Transactions (FTs) | 284.6 | 262.0 | 192.9 |
| UK Funded AME | 0.1 | 0.3 | – |
Presentational Adjustments for Scottish Parliament Approval
| Enterprise (NDPB Non‑cash) | (23.3) | (21.1) | (11.6) |
|---|---|---|---|
| Ferguson Marine (NDPB Non‑cash) | (0.5) | (0.5) | (0.6) |
| Highlands and Island Enterprise (NDPB Non‑cash) | (2.7) | (3.2) | (3.2) |
| South of Scotland Enterprise (NDPB Non‑cash) | (1.0) | (0.6) | – |
| Scottish National Investment Bank (NDPB Non‑cash) | (0.8) | (1.1) | (0.3) |
| Tourism (NDPB Non‑cash) | (4.2) | (4.4) | (2.3) |
| Total Wellbeing Economy, Fair Work & Energy | 1,353.9 | 1,337.5 | 1,252.5 |
| Total Limit on Income (accruing resources) | 400.0 |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Offshore Wind Supply Chain | – | 9.3 | 66.9 |
| Total Offshore Wind Supply Chain | – | 9.3 | 66.9 |
| of which | |||
| Fiscal Resource | – | 9.3 | 9.0 |
| Non‑cash | – | – | – |
| Capital | – | – | 32.9 |
| Financial Transactions (FTs) | – | – | 25.0 |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Energy Transition | 63.3 | 75.9 | 45.2 |
| CARES Recovery | – | 10.2 | 7.3 |
| Total Energy Transition | 63.3 | 86.1 | 52.5 |
| of which | |||
| Fiscal Resource | 10.3 | 9.6 | 9.1 |
| Non‑cash | – | – | – |
| Capital | 53.0 | 76.5 | 43.4 |
| Financial Transaction (FTs) | – | – | – |
| UK Funded AME | – | – | - |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Digital Connectivity | 130.9 | 96.5 | 143.8 |
| Digital Economy | 15.2 | (1.0) | – |
| Digital Strategy | 39.5 | 52.8 | 65.0 |
| Total Digital | 185.6 | 148.3 | 208.8 |
| of which | |||
| Fiscal Resource | 28.4 | 34.5 | 37.5 |
| Non‑cash | – | 3.5 | 4.8 |
| Capital | 151.2 | 112.3 | 166.5 |
| Financial Transactions (FTs) | 6.0 | (2.0) | – |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Employability | 124.0 | 133.6 | 102.9 |
| Total Employability | 124.0 | 133.6 | 102.9 |
| of which | |||
| Fiscal Resource | 123.9 | 133.6 | 102.9 |
| Non‑cash | 0.1 | – | – |
| Capital | – | – | – |
| Financial Transactions (FTs) | – | – | – |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Enterprise | 301.6 | 280.0 | 230.3 |
| Highlands and Islands Enterprise | 68.7 | 62.8 | 54.8 |
| Innovation, Industries, Trade and Investment | 60.0 | 34.3 | 36.3 |
| South of Scotland Enterprise Agency | 37.3 | 34.5 | 27.4 |
| Total Enterprise, Trade and Investment | 467.5 | 411.6 | 348.7 |
| of which | |||
| Fiscal Resource | 218.0 | 228.4 | 221.3 |
| Non‑cash | 27.0 | 24.9 | 18.3 |
| Capital | 149.6 | 132.1 | 115.2 |
| Financial Transactions (FTs) | 72.7 | 26.2 | (6.1) |
| UK Funded AME | 0.1 | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 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 (FTs) | – | – | – |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 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 (FTs) | – | – | – |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| National Strategy for Economic Transformation and Business and Better Regulation | – | – | 3.7 |
| Scientific Engagement and Advice | 3.0 | 3.0 | 3.0 |
| Office of the Chief Economic Adviser | 4.9 | 6.3 | 6.2 |
| Total Economic and Scientific Advice | 7.9 | 9.3 | 12.9 |
| of which | |||
| Fiscal Resource | 7.9 | 9.3 | 12.9 |
| Non‑cash | – | – | – |
| Capital | – | – | – |
| Financial Transactions (FTs) | – | – | – |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Scottish National Investment Bank | 215.8 | 246.1 | 177.1 |
| Total Scottish National Investment Bank | 215.8 | 246.1 | 177.1 |
| of which | |||
| Fiscal Resource | 9.0 | 5.8 | 2.8 |
| Non‑cash | 0.8 | 1.1 | 0.3 |
| Capital | 0.1 | 1.4 | – |
| Financial Transactions (FTs) | 205.9 | 237.8 | 174.0 |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| City and Region Investment and Strategy | 233.2 | 204.0 | 202.7 |
| Growth Accelerator | 1.5 | 7.4 | 8.5 |
| Total Cities Investment and Strategy | 234.7 | 211.4 | 211.2 |
| of which | |||
| Fiscal Resource | 8.7 | 20.1 | 21.2 |
| Non‑cash | – | – | – |
| Capital | 226.0 | 191.3 | 190.0 |
| Financial Transactions (FTs) | – | – | – |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Ferguson Marine | 35.2 | 60.0 | 42.5 |
| Total Ferguson Marine | 35.2 | 60.0 | 42.5 |
| of which | |||
| Fiscal Resource | 1.3 | 1.9 | 1.9 |
| Non‑cash | 0.5 | 0.5 | 0.6 |
| Capital | 33.4 | 57.6 | 40.0 |
| Financial Transactions (FTs) | – | – | – |
| UK Funded AME | – | – | – |
| Level 3 | 2022-23 Budget £m | 2023-24 Budget £m | 2024-25 Budget £m |
|---|---|---|---|
| Tourism | 52.4 | 52.7 | 47.0 |
| Total Tourism | 52.4 | 52.7 | 47.0 |
| of which | |||
| Fiscal Resource | 41.8 | 40.2 | 38.6 |
| Non‑cash | 4.2 | 4.4 | 3.3 |
| Capital | 6.5 | 7.9 | 5.2 |
| Financial Transactions (FTs) | – | – | – |
| UK Funded AME | – | 0.3 | – |
Contact
Email: ScottishBudget@gov.scot
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