Chamber and committees

One of the figures that draws the eye is expenditure on engagement. It was envisaged in 2022-23 that the cost would be £475,000, but it turned out to be £1,026,000. The cost has also declined to a very small £7,000 in the most recent quarter of the current financial year. Why did the Scottish Government get the figures for engagement so out of kilter, and why has there been such a decline in the costs? I would have thought that with co-design there would have been more rather than less engagement. What is the Scottish Government’s thinking in that respect?

I hope that we will get more detail on that in the financial memorandum. I do not expect you to say, for example, 63.5 per cent, but it would be helpful to know the ballpark shares that we are talking about—perhaps two thirds or a half.

I appreciate the time given by the minister and her officials. In order to prepare for the next evidence session, we will have a wee break.

Okay. Is the FSB having discussions with the Scottish ministers about how the £15 million entrepreneurship fund could and should be spent?

That is absolutely fine; I just wanted to get your view on it and to know how important it is to you.

In your submission, you said that you want a

“more sensible approach to regulation”,

but you did not spell out what you mean by that. What devolved regulation do you think hampers small businesses in Scotland that we could try to remove or change?

What is that balance? Is it 30:70, 20:80 or 40:60? What are we talking about?

The whole purpose of this inquiry is to try to present a report to the Scottish Government in which we say, “These are the priorities that the Government should take forward in the next financial year.” We know that, at this stage, there is a £1 billion funding gap and that finances are challenging. It is very easy for witnesses to come along and say, “You should spend more money in our sector.” We have already had that from all sectors, but it is simply not possible unless we raise taxation very significantly—which, frankly, other witnesses have suggested that we do.

What kind of additional reliefs are we talking about? I think that the latest figure for rates relief is £693 million. How could that be changed or increased, and how could any change or increase be funded to deliver more for the hospitality sector in Scotland?

Sandy, what can we do through the budget to ensure that the Scottish financial sector remains competitive?

I think that we would all agree that we need a lot more 25-year-olds in Scotland’s working population.

So, in areas where Scotland has an advantage—for example, the small business bonus scheme—we should pay additional rates relief, but in areas where the UK has an advantage, we should ensure that all Barnett consequentials go into the sector. It would be a double-win for the sector, but it would impact on other areas of the Scottish budget. If that £85 million is to be used in hospitality and other sectors, where in the Scottish budget should the Scottish Government take it from?

Is £15 million a realistic sum?