Chamber and committees

Should the grant—for example, the resource grant that the UK Government awards Scotland through the block grant—have been increased more?

The investment in critical safety and maintenance for road infrastructure is going up by 40 per cent next year to £524.7 million, and college capital is going up from £340.7 million to £356.9 million, which is a 4.5 per cent increase. In both those areas, capital is actually increasing.

Indeed. However, the point that I am trying to make is that, as Ross Greer said in the previous evidence session, a lot of the capital funding is going on critical safety and maintenance. The amount for road improvements is quite low—it is only £124 million. The issue is that the trunk road network maintenance and safety aspect is taking up the bulk of the capital, which is why local government is not getting the capital that it requires to do the pavements and side streets, which are also extremely important for people.

Does anyone else want to make any points?

Yes, well—newspapers are another story.

That is a matter for bartering, discussion and debate among the political parties. At this time of year, representatives of each of the political parties will speak to the Deputy First Minister to see whether they can shift the dial on the budget in one direction or another. There will not be any more money from anywhere, unlike in the good old days of Derek Mackay’s sofa. It is a question of moving the money from one page of the budget to another page. If colleges make a really good argument, it will no doubt be to the detriment of somebody else. That is the way it works when you have a budget that is, in effect, shrinking.

The theory is that they use what is called the GDP deflator, which means that inflation is set at 1.7 per cent in the budget. We all know that inflation is not 1.7 per cent, but that is how it is measured, because the UK Treasury GDP deflator is used. A 2.6 per cent increase in resource is probably a reduction in the real world, because more than half of the money that is spent here goes on salaries and wages and nobody is getting 2.6 per cent.

Figures for local government show that the general capital grant is falling from £607.6 million to £476.9 million, which is about a 19 per cent reduction.

I will let Jenny Peachy in and then we will go round the table. People can volunteer as to who wants to go first. If you do not, I will just pick somebody. Stacey Dingwall will go last, because she went first.

It was going to be you anyway, so well guessed.

I thank everyone for their contributions and for coming along today; it has been a very helpful discussion. Next week, we will continue to take evidence on the Scottish budget when we hear from the Scottish Parliamentary Corporate Body on its budget bid, and from the Deputy First Minister and Cabinet Secretary for Finance.

Okay. Professor Bell, what is your view of the three missions?